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26/11/2020

Full Year Results 2020

Mitchells & Butlers company news

(For the 52 weeks ended 26 September 2020)

Highlights

  • Decisive and effective action taken to protect guests and team members and to reduce costs
  • New financing arrangements provide security and flexibility
  • Strong operational performance demonstrated on reopening in July
  • Online feedback scores strengthened following July reopening
  • Well positioned to benefit from future easing in operating restrictions

Reported results

  • Total revenue of £1,475m declined by 34.1% (FY 2019 £2,237m)
  • Operating profit of £8m (FY 2019 £297m)
  • (Loss)/profit before tax of £(123)m (FY 2019 £177m)
  • Basic (loss)/earnings per share of (26.2)p (FY 2019 33.5p)

Trading results

  • Full year includes period of enforced closure due to Covid-19 from 20 March to 4 July
  • Like-for-like salesa decline of 3.5% remained consistently ahead of the marketb
  • Adjusted operating profita £99m (FY 2019 £317m)
  • Adjusted (loss)/earnings per sharea (6.3)p (FY 2019 37.2p)

Balance sheet and cash flow

  • Cash flow from operating activities of £127m (FY 2019 £266m) despite shortfall in trading
  • Net debt of £1,563m flat across the year (FY 2019 £1,564m). £2,104m including lease liabilities following the adoption of IFRS16
  • Net cash and cash equivalents of £158m and undrawn unsecured facilities of £140m as at the year end
  • Unsecured committed financing facilities increased by £100m to total £250m to 31 December 2021
  • Capital investment of £108m (FY 2019 £152m), including 167 conversions and remodels (FY 2019 240), primarily in the first half
  • Full property valuation and impairment review undertaken in September resulting, subject to material uncertainty, in an overall decrease in book value of £208m

Phil Urban, Chief Executive, commented:

"Throughout a very uncertain and challenging year our businesses and teams have adapted quickly, creating a safe environment for guests and putting us in a strong position to benefit when consumers are able to eat out again. We saw direct evidence of this from a strong trading period in July and August before further restrictions came into force.

With our great estate, balanced portfolio of brands and proven management team, we remain optimistic that we will be able to regain the momentum previously built and continue to achieve sustained market outperformance, when the current operating restrictions are eased."

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 defined later in this announcement.

b – As measured by the Coffer Peach business tracker.

There will be a presentation held today at 8.30am accessible by phone on 0203 936 2999 access code: 213596, and at www.incommuk.com/customers/online access code: 213596. The slides will be available on our website at www.mbplc.com. The replay will be available until 10 December 2020 on 0203 936 3001, access code: 361779.

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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