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27/11/2012

Mitchells & Butlers plc Full Year Results 2012

(For the 53 weeks ended 29 September 2012)

Positioning for long term growth

Statutory results

  • EBITDA: £395m (FY 2011: £387m)
  • Basic earnings per share, after property revaluation: 17.1p (FY 2011: 30.7p)

Financial performance

  • Total revenue of £1,889m, up 3.3%a
  • Like-for-like sales growth of 2.1%b, led by food sales
  • Recovery in net operating margin in the second half
  • Adjusted operating profit of £304mc, up 1.0%a after inflationary costs and investment into service and amenity
  • Adjusted earnings per share of 30.5pc, up 6.4%a
  • Net cash flow of £32md after expansionary capital of £55m
  • Net debt of £1.8bn representing 4.5 times EBITDAe
  • Like-for-like sales broadly flat in the first 8 weeks of FY 2013

Operational performance

  • Business transformation programme underway to improve focus on the guest in all areas
  • Central support functions and infrastructure reorganised with £6m saving delivered in FY 2012
  • Increased investment in training and service; new training academy opened
  • Guest satisfaction and retail employee engagement both improved 5 percentage points
  • Building on enhanced technology platform to further improve the customer experience with more targeted marketing
  • Award-winning brands and infrastructure projects: Harvester and Toby Carvery top Technomic satisfaction poll; Retail Systems Award for Best Use of Technology; Alex wins Consumer Focus award in Germany; M&B awarded Carbon Trust Standard for the second time.

Property Estate

  • £37m reduction in property valuation, a 1% decrease excluding acquisitions and conversions
  • 47 new site openings and 10 conversions in the period with expansionary capex of £55m
  • EBITDA returns of 17% achieved on expansionary capex invested over the last two years

Bob Ivell, Non-executive Chairman, commented:

"This year we have initiated a significant cultural change programme focused on streamlining internal processes and placing the guest at the heart of everything we do. We have restructured the way we support our operations teams, reduced our central costs and increased the accountability of our senior executives for their brands. I am extremely pleased that we have delivered a resilient financial performance, during a period of such cultural and organisational change.

Since becoming Chairman my foremost priority has been to recruit the right person to lead the business as Chief Executive. Having appointed Alistair, my focus will now shift to enhancing the balance, skills and compliance of the Board through the selection of appropriately qualified independent Non-Executive Directors."

Alistair Darby, Chief Executive, commented:

"I am delighted to be leading a company with great people and popular branded pubs, bars and restaurants. M&B is well positioned to take maximum advantage of our evolving industry and we have the right strategy in place. I look forward to continuing the business transformation to deliver long term earnings growth and shareholder returns."

Definitions

a - Growth rates are quoted on a 52 week vs 52 week basis to exclude the benefit of an extra trading week in FY 2012.
b - Like-for-like sales growth is measured over the 52 weeks to 22 September 2012 and 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 52 weeks to 22 September 2012, 93% of the UK managed estate is included in this measure.
c - Adjusted items are quoted before exceptional items and other adjustments as noted in the Group Income Statement.
d - Net cash flow is detailed within the Financial Review.
e - Adjusted EBITDA for the 52 weeks to 22 September 2012.

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 11th December 2012 on + 44 121 260 4861 replay access pin 6565693.

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, Metro Professionals, Alex, Nicholson's, O'Neill's 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 420 million drinks each year and is one of the largest operators within the UK's £70 billion eating and drinking out market.

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