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23/05/2019

Half Year Results 2019

(For the 28 weeks ended 13 April 2019)

  • Adjusted operating profita and margina growth
  • Continued market outperformanceb
  • Momentum growing from fresh initiatives

Trading results

  • Like-for-like salesa growth of 4.1% in the first half
  • Adjusted operating profita growth of £10m to £151m (H1 2018 £141m)
  • Adjusted earnings per sharea growth of 15.8% to 16.1p (H1 2018 13.9p)

Operational highlights

  • Strong first half with market outperformance and return to profit growth
  • Improved returns from capital programme with 208 projects completed
  • Sales focused initiatives driving improved performance across the portfolio
  • Efficiencies resulted in increased operating margin of 12.7% (H1 2018 12.5%)

Reported results

  • Total revenue of £1,186m (H1 2018 £1,130m)
  • Operating profit of £140m (H1 2018 £137m)
  • Profit before tax of £75m (H1 2018 £69m)
  • Basic earnings per share of 14.3p (H1 2018 13.0p)

Balance sheet and cash flow

  • Capital expenditure of £90m (H1 2018 £104m), including 2 new site openings and 206 conversions and remodels (H1 2018 220)
  • Adjusted free cash flowa of £23m (H1 2018 £(3)m)
  • Net debt reduced to £1.63bn (H1 2018 £1.72bn) representing 3.8 times adjusted EBITDAa (H1 2018 4.1 times)

Phil Urban, Chief Executive, commented:

"This is a strong set of results, demonstrating that we continue to build momentum in the business, delivering sales growth, sustained market outperformanceb and a return to operating profit growth all while reducing leverage to below four times. This strong performance comes from the progress we continue to make in our three priority areas: building a more balanced business; instilling a more commercial culture; and driving an innovation agenda.

Success in this highly competitive market is dependent on a continuous stream of improvements, and that is what we are delivering with many small advances at site level driving significant benefits in aggregate. We will maintain our focus on these initiatives which we believe are transforming the business."

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. Alternative performance measures 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 8.30am at the Glazier's Hall, 9 Montague Close, London, SE1 9DD. A live webcast of the presentation will be available at www.mbplc.com. The presentation will also be accessible by phone: 0203 936 2999, access code: 173906. The replay will be available until 30 May 2019 on 0203 936 3001, access code: 157226.

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

Notes to 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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