Mitchells gets a break from the weather

All Bar One owner Mitchells & Butlers toasted strong sales yesterday after it capitalised on a lull in the cold snap over Christmas and New Year.

The group, which also trades as O'Neills, Harvester and Ember Inns, said like-for-like sales were up 3.4 per cent in the six weeks to January 2, but rose by 4.9 per cent in the ten-day holiday period when weather conditions were less severe.

Mitchells described the performance as strong but said it remained cautious on the outlook for consumer spending, particularly in the second half of the year.

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It reported improved demand at its high street pubs and bars, where sales improved by 2.9 per cent in the six-week period after a flat performance in the previous eight weeks.

Drink sales were up 2.1 per cent across the estate, with food still strong after growth of 5.5 per cent in late November and December.

Mitchells said reduced food cost inflation, lower energy costs and productivity gains had boosted margins.

The update also switched attention away from the company's recent boardroom struggles, which are expected to resurface at its annual meeting in Birmingham later this month.

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The group is engaged in a bitter row with billionaire investor Joe Lewis, who owns 22.8per cent of the firm through his Piedmont vehicle. The faction also includes John Magnier and JP McManus, the Irish horseracing tycoons who account for 17.6 per cent of the shares, and hedge fund Leo Fund with 5.6 per cent.