The owner of All Bar One saw its profit slump by more than a quarter as it faced greater competition and higher costs.

Pub group Mitchells & Butler said its pre-tax profit fell 25.4% to £94m in the 12 months to 24 September, as it was buffeted by higher national living wage costs and a wave of new restaurant openings. Like for like sales slipped by 0.8% over the period.

The group – which also owns Toby Carvery, Harvester and O'Neill's –­­ ­­­­­­said it suffered from about 1,700 new restaurant openings in the UK in the 12 months to June, roughly equal to the entire Mitchells & Butler estate.

It added that it expects to face "downward pressure on margins" in the new financial year as the group experiences higher wage and business rate costs, while a weaker pound will make its imports more expensive.

Mitchells & Butler also operates a small number of bars and restaurants in Germany.

Chief executive Phil Urban said: "In the next year, as previously announced, we face external cost headwinds, notably from further wage inflation, the recent business rates review and exchange rate movements.

"We are working hard to mitigate these headwinds wherever possible, both through building on our sales momentum and active management of our cost base."