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22/11/2016

Full Year Results 2016

(For the 52 weeks ended 24 September 2016)

  • Return to like-for-like sales growth
  • Acceleration of estate investment
  • Good progress on all three strategic priorities

Financial performance

  • Full year like-for-like sales down 0.8%a with improving trend through the year. Recent eight weeks up 0.5%
  • Adjusted operating profit of £318mb (FY 2015 £328m)
  • Adjusted earnings per share of 34.9pb (FY 2015 35.7p)
  • Final dividend of 5.0p

Reported results

  • Total revenue of £2,086m (FY 2015 £2,101m)
  • Operating profit of £231m (FY 2015 £270m)
  • Profit before tax: £94m (FY 2015 £126m)
  • Basic earnings per share: 21.6p (FY 2015 25.0p)

Balance sheet and cash flow

  • Capital expenditure £167m (FY 2015 £162m), including 8 new site openings and 252 conversions and remodels
  • Free cash flow before adjusted items of £60mc (FY 2015: £95m)
  • Net debt of £1.84bn representing 4.3 times adjusted EBITDAb (FY 2015 4.3 times)

Phil Urban, Chief Executive, commented:

"During the year we have made good progress in our three priority areas: building a more balanced business; instilling a more commercial culture; and driving an innovation agenda. This focus is starting to have a positive effect on our sales, with improved performance against a subdued market in recent months through continuation of the momentum we saw start in the second half of last year. Sales growth in the first eight weeks was impacted by the Rugby World Cup in the prior year, but I'm encouraged by the underlying momentum which has seen recent weeks return to the levels seen in the summer.

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."

Definitions

a – Like-for-like sales growth reflects the sales performance against the comparable period in the prior year of UK managed pubs, bars and restaurants that were trading in the two periods being compared, unless marketed for disposal. Like-for-like sales are measured against relevant accounting weeks in the prior year.
b – Adjusted earnings are quoted before adjusted items as set out in the Group Income Statement and detailed in note 3 of the accounts.
c – Free cash flow before adjusted items excludes £31m dividend payment (FY 2015 £nil); £67m mandatory bond amortisation (FY 2015 £61m); £31m drawn from an unsecured revolving facility (FY 2015 £nil) and, in the prior year, £120m transferred from cash to other cash deposits and £6m of operating adjusted items.

There will be a presentation today for analysts and investors at 8.30am at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. A live webcast of the presentation will be available at www.mbplc.com. The conference will also be accessible by phone: 020 3059 8125 and quote "Mitchells & Butlers". The replay will be available until 29 November 2016 on 0121 260 4861 replay access pin 4486867#.

All disclosed documents relating to these results are available on the Group's website at www.mbplc.com

For further information, please contact:

Tim Jones – Finance Director+44(0)121 498 6112
James Cooper – Investor Relations+44(0)121 498 4525
James Murgatroyd (Finsbury)+44(0)20 7251 3801

Notes for editors:

  • Mitchells & Butlers is a leading operator of managed restaurants and pubs. Its strong portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Crown Carveries, Stonehouse, Vintage Inns, Browns, Castle, Nicholson's, O'Neill's and Ember Inns. In addition, it operates Innkeeper's Lodge hotels in the UK and Alex restaurants and bars in Germany. Further details are available at www.mbplc.com and supporting photography can be downloaded at www.mbplc.com/imagelibrary.

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Sally Ellson External Communications Manager +44 (0) 121 498 4395

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