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Announcement of the Interim Results for the 28 Weeks to 10 April 1999

Announcement of the Interim Results for the 28 Weeks to 10 April 1999

Bass Performance Driven by Brands

Financial Highlights

  • Operating profit on continuing operations up by 17.3 per cent to £352 million (£300 million, 1998)
  • Profit before tax £276 million
  • Inter-Continental lifts its profit by 43 per cent
     - Twelve management contracts now signed for new Inter-Continental hotels since acquisition
  • Total underlying hotel division profit up over 20 per cent
     - Crowne Plaza and Holiday Inn brands outperform US market
  • Leisure Retail shows its competitive strength with underlying profit growth over 10 per cent
     - Branded outlets grow profit by 30 per cent
     - Total food sales up over 10 per cent
  • Branded Drinks showing recovery in second quarter
     - Grolsch up 10 per cent
     - Worthington up nearly 8 per cent
     - Carling, Britain's no. 1 beer brand, grows by over 7 per cent
  • Healthy growth in earnings, offset by seasonality of Inter-Continental, the effect of disposals and the Bristol/FelCor merger, produces adjusted earnings per share of 25.6 pence (26.0 pence, 1998)
  • Interim dividend per share up by 7.7 per cent to 9.8 pence (9.1 pence, 1998)

Underlying Business Performance

Commenting on the results, Sir Ian Prosser, Chairman, Bass PLC said,

"After a year of significant corporate restructuring, we entered this financial year determined to drive forward performance and organic growth in our businesses. I am pleased to report that these actions have culminated in excellent results in our hotels and leisure retail divisions and a commendable performance for the Group as a whole."

He continued,

"In our hotels division, as a result of strong management action, Inter-Continental continued its exceptional performance with profit up 43 per cent on the $58 million it made in the six months prior to acquisition."

"Leisure Retail has outperformed other major pub operators and delivered over 10 per cent growth in underlying operating profit against the same period last year. Growth in food sales and profit from the branded estate were particularly pleasing in the competitive environment."

He concluded,

"Our strategy of building leading positions in our target markets through strong brands, supported by highly efficient infrastructure, is proving value creative. The quality of our management, combined with our financial strength, will enable us to continue to pursue value creative strategies and investments as we drive organic growth across all our operations. Given the successes we have experienced in the first half of this financial year and the general feeling of an improving economic environment, we remain confident about the second half of the year."

To download the full stock exchange announcement in Adobe PDF format (42k), please click here .

Bass PLC, switchboard 0171 409 1919
Pugh Phillips, Director of Group Communication   0171 409 1919
Mark Rigby, Media Relations 0171 409 8571

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