Mitchells & Butlers, the recently demerged pubs arm of Six Continents, has issued its maiden set of results as an independent company and announced it aims to return at least £400m to shareholders.

Pre-tax profits were down 7 per cent to £93m, operating profit was down 6.2 per cent to £137m and turnover was all but flat at £793m.However, M&B chief executive, Tim Clarke, said: "The first half has seen solid progress against our operating priorities. Overall, our performance remains resilient despite difficult trading conditions in the High Street and London."

He continued: "Subject to market conditions and, in particular, long term interest rates, we aim to raise sufficient proceeds from a business securitisation to return to shareholders at least £400m."Further details on the securitisation and the return of funds will be announced by the time of the group's next trading update in September.

Current trading has seen some improvement in the second quarter, which has continued into May. Like for like sales in the 12 weeks to 12 April were down 3.7 per cent - adjusted for Easter - and in the eight weeks to 10 May were down 3.1 per cent, compared with a drop of 4.5 per cent over October and November last year.Looking ahead, the company "remains cautious on the outlook for overall UK consumer spending."

Elsewhere, the company said it had noted Scottish & Newcastle's (S&N) intention to sell its pubs, calling it "the latest development in a period of major structural change in the industry'.Six Continents and S&N were reported to have discussed a merger of their pub interests before the former decided to demerge its pub and hotel divisions into M&B and Intercontinental Hotels respectively.

Of the possibility of M&B making a bid for S&N's pubs, Clarke said: "In the current circumstances our priority remains the refinancing of the business, the return of cash and the development of the group through organic endeavour. Only in the event that we identify and can deliver with certainty an alternative strategy of compelling and greater value will we consider departing from this well defined path."M&B has an estate of 671 restaurants and 1,424 bars throughout the UK. Details: www.mbplc.com