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20/11/2019

Full Year Results 2019

Mitchells & Butlers company news

(For the 52 weeks ended 28 September 2019)

  • Strong adjusted profit before taxa growth, up 10.7%
  • Continued market outperformanceb

Reported results

  • Total revenue of £2,237m (FY 2018 £2,152m)
  • Operating profit of £297m (FY 2018 £255m)
  • Profit before tax of £177m (FY 2018 £130m)
  • Basic earnings per share 33.5p (FY 2018 24.5p)

Trading results

  • Like-for-like salesa growth of 3.5%
  • Adjusted operating profita growth of £14m to £317m (FY 2018 £303m)
  • Adjusted earnings per sharea growth of 9.1% to 37.2p (FY 2018 34.1p)

Operational highlights

  • Strong trading with market outperformanceb and profit growth
  • Improved returns from capital programme of 21%, up 5ppts
  • Strong performance across the brand portfolio driven by sales initiatives
  • Efficiencies resulted in increased operating margina of 14.2% (FY 2018 14.1%)

Balance sheet and cash flow

  • Capital expenditure of £152m (FY 2018 £171m), including 7 new site openings and 240 conversions and remodels (FY 2018 232)
  • Adjusted free cash flowa of £11m (FY 2018 £(19)m)
  • Net debt reduced to £1.56bn (FY 2018 £1.69bn) representing 3.6 times adjusted EBITDAa (FY 2018 4.0 times)

Phil Urban, Chief Executive, commented:

"These strong results reflect the work we have done over the last few years, first to build sustained sales growth and then to convert that into profit growth. It has been extremely encouraging to see an improvement in like-for-like sales growth across the portfolio during the year, fuelled by our Ignite programme of work. This puts us in a stronger position as we move forward into the next financial year, in what we expect to remain challenging market conditions."

Definitions

a – The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. APMs are explained later in this announcement.

b – As measured by the Coffer Peach business tracker.

There will be a presentation today for analysts and investors at 8.15am 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 presentation will also be accessible by phone on 0203 936 2999, access code 089528. The replay will be available until 27 November 2019 on 0203 936 3001, access code 267517.

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 – Chief Financial Officer+44(0)121 498 6552
Amy De Marsac – Investor Relations+44(0) 7712 538660
James Murgatroyd (Finsbury)+44(0)20 7251 3801

Notes for editors:

  • Mitchells & Butlers is a leading operator of managed restaurants and pubs. Its portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, 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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