Financial performance
Download the Final Results announcement 2011 to view the supporting notes to these statements.
Mitchells & Butlers has delivered a resilient set of results in FY 2011 despite a challenging year with a difficult consumer environment. Sales in the Retained Estate were up 4.9% to £1,762m, with like-for-like sales growth of 2.6%. EBIT was up 1.1% to £288m, despite £30m of incremental regulatory and inflationary costs and £8m of start-up costs from brand roll-out. Our brand roll-out programme has progressed well with £82m of expansionary capital invested in the year and EBITDA returns of 21% achieved on expansionary capital invested in FY 2010 and FY 2011. Net debt was reduced by more than £400m during FY 2011 and net debt:EBITDA is now at 4.7 times.
Included in this section are the Group income, balance sheet and cash flow statement for FY2011 however a pro-forma income statement for the Retained Estate excluding the major disposals of 333 pubs (completed in FY 2011), lodges and bowls, and SCPD is shown below:
52 weeks ended 24 September 2011
| Reported | % growth | Retained * | % growth | |
|---|---|---|---|---|
| Revenue | £1,796m | (9.3) | £1,762m | 4.9 |
| EBITDA | £404m | (10.0) | £398m | 1.8 |
| EBIT | £294m | (8.7) | £288m | 1.1 |
| EBIT margin | 16.4% | 0.1 ppts | 16.3% | (0.7) ppts |
* The Retained Estate comprises the ongoing business and excludes the major disposals of 333 non-core pubs, lodges and Hollywood Bowl, and in addition SCPD.
Group Income Statement
For the 52 weeks ended 24 September 2011
| 2011 | 2010 | |||||
|---|---|---|---|---|---|---|
| 52 weeks | 52 weeks | |||||
| Before exceptional items and other adjustments £m |
Exceptional items and other adjustmentsa £m |
Total £m | Before exceptional items and other adjustments £m |
Exceptional items and other adjustmentsa £m |
Total £m | |
| Revenue | 1,796 | - | 1,796 | 1,980 | - | 1,980 |
| Operating costs before depreciation, amortisation and movements in the valuation of the property portfolio | (1,392) | (13) | (1,405) | (1,531) | - | (1,531) |
| Net (loss)/profit arising on property disposals | - | (4) | (4) | - | 15 | 15 |
| EBITDAb | 404 | (17) | 387 | 449 | 15 | 464 |
| Depreciation, amortisation and movements in the valuation of the property portfolio | (110) | (2) | (112) | (127) | (304) | (431) |
| Operating profit/(loss) | 294 | (19) | 275 | 322 | (289) | 33 |
| Finance costs | (141) | - | (141) | (153) | - | (153) |
| Finance revenue | 3 | - | 3 | - | - | - |
| Net finance charge from pensions | - | (5) | (5) | - | (7) | (7) |
| Profit/(loss) before tax | 156 | (24) | 132 | 169 | (296) | (127) |
| Tax (expense)/credit | (42) | 35 | (7) | (48) | 91 | 43 |
| Profit/(loss) for the period | 114 | 11 | 125 | 121 | (205) | (84) |
| Earnings/(loss) per ordinary share | ||||||
| Basic | 28.0p | 30.7p | 29.7p | (20.6)p | ||
| Diluted | 27.7p | 30.5p | 29.4p | (20.6)p | ||
a Exceptional items and other adjustments.
b Earnings before interest, tax, depreciation, amortisation and movements in the valuation of the property portfolio.
Group Balance Sheet
24 September 2011
| 2011 |
2010 restateda |
2009 |
|
|---|---|---|---|
| £m | £m | £m | |
| ASSETS | |||
| Goodwill and other intangible assets | 10 | 1 | 1 |
| Property, plant and equipment | 3,848 | 3,693 | 4,461 |
| Lease premiums | 6 | 8 | 10 |
| Deferred tax asset | 83 | 106 | 87 |
| Derivative financial instruments | 18 | 11 | 6 |
| Total non-current assets | 3,965 | 3,819 | 4,565 |
| Inventories | 25 | 25 | 38 |
| Trade and other receivables | 70 | 97 | 40 |
| Other cash deposits | 50 | - | - |
| Cash collateral deposits | - | - | 2 |
| Cash and cash equivalents | 306 | 227 | 105 |
| Total current assets | 451 | 349 | 185 |
| Assets held for sale | - | 434 | 19 |
| Total assets | 4,416 | 4,602 | 4,769 |
| LIABILITIES | |||
| Borrowings | (49) | (136) | (59) |
| Derivative financial instruments | (44) | (47) | (50) |
| Trade and other payables | (298) | (334) | (270) |
| Current tax liabilities | (17) | (8) | (1) |
| Total current liabilities | (408) | (525) | (380) |
| Borrowings | (2,197) | (2,409) | (2,660) |
| Derivative financial instruments | (235) | (149) | (60) |
| Other payables | (12) | (12) | - |
| Pension liabilities | (37) | (143) | (130) |
| Deferred tax liabilities | (429) | (464) | (542) |
| Provisions | (6) | (6) | - |
| Total non-current liabilities | (2,916) | (3,183) | (3,392) |
| Total liabilities | (3,324) | (3,708) | (3,772) |
| Net assets | 1,092 | 894 | 997 |
| EQUITY | |||
| Called up share capital | 35 | 35 | 35 |
| Share premium account | 21 | 20 | 17 |
| Capital redemption reserve | 3 | 3 | 3 |
| Revaluation reserve | 768 | 747 | 703 |
| Own shares held | (5) | (8) | (2) |
| Hedging reserve | (214) | (149) | (87) |
| Translation reserve | 12 | 12 | 13 |
| Retained earnings | 472 | 234 | 315 |
| Total equity | 1,092 | 894 | 997 |
a Restated in respect of pension liabilities.
Group Cash Flow Statement
For the 52 weeks ended 24 September 2011
| 2011 | 2010 | |
|---|---|---|
| 52 weeks | 52 weeks | |
| £m | £m | |
| Cash flow from operations | 336 | 457 |
| Interest paid | (137) | (147) |
| Interest received | 3 | - |
| Tax paid | (20) | (8) |
| VAT refund received including interest | - | 12 |
| Net cash from operating activities | 182 | 314 |
| Investing activities | ||
| Acquisition of Ha Ha Bar & Grill Limited | (20) | - |
| Acquisition of Intertain (Dining) Limited | (4) | - |
| Purchases of property, plant and equipment | (144) | (136) |
| Purchases of intangibles (computer software) | (4) | (2) |
| Proceeds from sale of property, plant and equipment | 28 | 111 |
| Proceeds from disposal of assets held for sale | 396 | 19 |
| Transfers from cash collateral deposits | - | 2 |
| Transfers to other cash deposits | (50) | - |
| Net cash used in investing activities | 202 | (6) |
| Financing activities | ||
| Issue of ordinary share capital | 1 | 3 |
| Purchase of own shares | - | (6) |
| Proceeds on release of own shares | 1 | - |
| Repayment of principal in respect of securitised debt | (49) | (46) |
| Repayment of principal in respect of other borrowings | (259) | (136) |
| Net cash used in financing activities | (306) | (185) |
| Net increase in cash and cash equivalents | 78 | 123 |
| Cash and cash equivalents at the beginning of the financial period | 228 | 105 |
| Cash and cash equivalents at the end of the financial perioda | 306 | 228 |
a Cash and cash equivalents at the end of the financial period of £306m (2010 £228m) includes £nil (2010 £1m) of cash and cash equivalents included within assets held for sale.