The group reduced debt from £16.8m to £9.5m between February 2012 and June 2014 after “successfully generating funds from operations and property disposals”.
The company said restructure negotiations are continuing with the bank and loan note holders and a formal agreement is expected with the bank until June 2015. “This will be predicated on a further property disposal programme, which we are confident will be achieved.
“When this programme is complete, the group will be leaner, with far less gearing. This will enable the group to generate funds for the benefit of the business, rather than its funders.”
Mitchell's said it was “delighted by the performance of our fledgling Tap House craft beer concept, which we believe has the potential for rollout”.
The Tap House, in Lancaster, is billed as a “world beer shrine” that aims to bring “the best array of artisan brews and international craft ales alongside an eclectic range of niche wines and speciality spirits”.
Pre-tax profit in the year to 26 February 2013 grew from £26,000 to £754,000 on turnover down 3% to £9m.