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Half Year Results 2013

(For the 28 weeks ended 13 April 2013)

Strong earnings growth with further operational and strategic progress

Statutory results

  • Profit before tax: £72m (H1 2012: £42m)
  • Basic earnings per share: 14.1p (H1 2012: 8.8p)

Financial highlights

  • Total revenue of £991m, up 2%
  • Like-for-like sales growth of 0.3%a
  • Adjusted operating profit of £145mb, up 5%
  • Adjusted earnings per share of 14.6pb, up 17%
  • Net cash inflow of £70mc before mandatory bond amortisation of £27m
  • Net debt of £1.8bn representing 4.3 times adjusted EBITDAd

Operational highlights

  • Restructuring cost savings delivered in full
  • Further investment made in guest service through ongoing business transformation programme
  • Operating margin up 40 basis points to 14.6% against H1 2012
  • EBITDA returns of 17% achieved on expansionary capex invested since FY 2011

Strategic progress

  • 'Five star' approach to the market to align strategy with growth potential
  • Future investment focused on attractive market spaces: Upmarket Social, Family and Special
  • Clear operational priorities: people, practices, guests and profits

Board composition

  • Stewart Gilliland appointed as an independent Non-Executive Director
  • Three independent Non-Executive Directors appointed this year

Alistair Darby, Chief Executive, commented:

"These results demonstrate the progress we are making through our business change programme. We are growing sales and profit in a tough market by building on the firm foundations of our excellent estate, strong brands, dedicated people and substantial scale.

Having now delivered our restructuring cost savings in full, we have identified specific market segments where we can grow successfully and we have outlined clear operational priorities. By focusing on these areas, I believe that we will provide great experiences for our guests and sustainable returns for our shareholders."


a - 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 13 April 2013, 95% of the UK managed estate is included in this measure.

b - Adjusted items are quoted before exceptional items and other adjustments as noted in the Group Income Statement.

c - Net cash flow is detailed within the Financial Review.

d - Adjusted EBITDA for the 52 weeks to 13 April 2013.

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 20 3059 8125 and quote "Mitchells & Butlers". The replay will be available until 30/05/2013 on + 44 121 260 4861, replay access pin 4407008.

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 (RLM Finsbury)+44 (0)207 251 3801

Notes for editors:

  • Mitchells & Butlers is the UK's largest operator of managed restaurants and pubs. Its portfolio of brands and formats includes Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Village Pub & Kitchen, Sizzling Pubs, All Bar One, Browns, Miller & Carter, Castle, Alex, Nicholson's, O'Neill's, Oak Tree Pubs 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 130 million meals and 410 million drinks each year and is one of the largest operators within the UK's £75 billion eating and drinking out market.

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