Mitchells & Butlers plc is a member of the FTSE 250 and runs some of the UK's best-loved restaurant and pub brands including All Bar One, Harvester, Toby Carvery, Browns, Vintage Inns and Sizzling Pubs. Our vision is to run businesses that guests love to eat and drink in, and as a result grow shareholder value.
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Mitchells & Butlers is the leading operator of restaurants and pubs in the UK. It listed on the London Stock Exchange in April 2003 and is a member of the FTSE 250. Its restaurants and pubs have some of the highest average sales and profits per site in the industry and it operates the best portfolio of brands in the UK, with a focus on growth in the eating-out market.
The total eating and drinking out markets have a combined value of £75bn. Mitchells & Butlers operates c. 1600 predominantly UK managed freehold pubs. Overall, there are c. 50k pubs in the UK.
Mitchells & Butlers has developed its business strategy to focus on the growth parts of the eating and drinking-out markets. Our objective is to run businesses that people love to eat & drink in with market-leading brands that provide excellent customer service, range and quality across the key customer occasions and grow shareholder value. Our strategy to achieve this goal has five key elements:
- Focusing the business on the growth in the eating-out market
- Developing national brands with high customer affinity and relevance
- Generating high returns on investment through scale advantages
- Extending the skill base of operational excellence and consumer focus
- Continuing the sound financial base with a flexible approach to property ownership
Mitchells & Butlers delivered a strong financial performance in H1 2013, growing adjusted EPS by 17% whilst increasing cash flow, reducing debt and continuing to invest prudently in new growth opportunities. Sales were £991m up 2.3%, with like-for-like sales growth of 0.3%. Adjusted EBIT was £145m up 5% after inflationary costs and investment into service and amenity. Our brand roll-out programme has delivered EBITDA returns of 17% on expansionary capital invested since the start of the current programme of expansion in FY 2011. Net debt was reduced to £1.8bn during H1 2013 and net debt:EBITDA is now at 4.3 times.
The Board is responsible for ensuring compliance with the Combined Code and recognises the importance of good corporate governance in creating a sustainable, successful and profitable business. This includes reviewing internal controls, ensuring that there is an appropriate balance of skills and experience represented on the Board and maintaining relations with shareholders.