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18/05/2012

Half Year Results 2012

(For the 28 weeks ended 7 April 2012)

Resilient operating performance; business transformation programme underway

Financial performance

  • Retained Estatea revenue growth of 6.3% to £969m, with like-for-likeb growth of 2.7%
  • Retained Estatea operating profit up 1.5% to £138m before exceptional items, with net operating marginc down 0.7 percentage points as a result of inflationary cost increases in energy and food
  • Exceptional operating costs of £20m include £14m of business and systems restructuring costs, delivering annualised savings of £10m
  • Adjusted earnings per shared up 10.6% to 12.5p after lower interest and tax charges
  • Net cash flow of £12m after expansionary capital and exceptional items
  • Net debt of £1.9bn representing 4.6 times EBITDAe

Statutory results

  • Profit before tax down £1m to £42m
  • Basic earnings per share down 0.3p to 8.8p

Brand roll-out

  • 35 new site openings and 7 conversions in the period with expansionary capex of £42m
  • 200th Harvester opened, a major milestone for the brand
  • EBITDA returns of 17% achieved on expansionary capex invested over the last two years

Strategic progress

  • Business transformation programme underway, simplifying our support functions and sharpening focus on guest service throughout all areas of the business
  • IT infrastructure upgraded, laying the foundation for technological enhancements including wi-fi rollout and a faster menu development cycle
  • Service quality enhanced through increased investment in site-level operations

Bob Ivell, Executive Chairman, commented:

"We have remained firmly on the front foot with a relentless focus on actions that will drive the medium and long term success of the business. We are continuing to deliver a resilient operating performance, maintaining the roll-out of our industry-leading brands and progressing our major business change programme. I am pleased with the progress being made to appoint a new CEO and further Non-Executive Directors and look forward to being able to make an announcement at the appropriate time.

Despite challenging trading conditions, we remain confident that we can deliver a full year result in line with expectations."

Definitions

a - The Retained Estate comprises the ongoing business. It excludes the major disposal of 333 non-core pubs in November 2010.

b - Like-for-like sales growth includes the sales performance against the comparable period in the prior year of all UK managed pubs that were trading in the two periods being compared. For the 28 weeks to 7 April 2012, 92% of the UK managed estate is included in this measure.

c - Net operating margin is Retained Estate operating profit before exceptional items divided by Retained Estate revenue.

d - Adjusted earnings per share is profit after tax before exceptional items and other adjustments, divided by the weighted average number of ordinary shares in issue.

e - EBITDA used is from the Retained Estate before exceptional items for the 52 weeks to 7 April 2012.

There will be a presentation for analysts and investors at 9.30am at Nomura International plc, 1 Angel Lane, London, EC4R 3AB. A live webcast of the presentation will be available at www.mbplc.com. The conference will also be accessible by phone: +44 (0) 203 059 8125 and quote "Mitchells & Butlers". The replay will be available until 1 June 2012 on +44 (0) 121 260 4861 replay access pin 7959697#.

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 6514
Stephen Hopson - Head of Investor Relations+44 (0)121 498 4895
James Murgatroyd (Finsbury Group) +44 (0)207 251 3801

Notes for editors:

  • Mitchells & Butlers is the leading operator of restaurants and pubs in the UK. Its portfolio of brands and formats includes Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Sizzling Pubs, All Bar One, Browns, Miller & Carter, Metro Professionals, Alex, Nicholson's, O'Neill's and Ember Inns. Further details are available at www.mbplc.com and supporting photography can be downloaded at www.mbplc.com/imagelibrary
  • Mitchells & Butlers serves around 125 million meals and 425 million drinks each year and is one of the largest operators within the UK's £68 billion eating and drinking out market.

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

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