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26/11/2013

Full Year Results 2013

(For the 52 weeks ended 28 September 2013)

A strong financial performance and business transformation on track

Statutory results

  • Profit before tax: £150m (FY 2012: £83m)
  • Basic earnings per share: 32.9p (FY 2012: 17.1p)

Financial performance (52 week comparables)

  • Total revenue of £1,895m, up 2.2%a
  • Like-for-like sales growth of 0.4%b
  • Adjusted operating profit of £312m, up 5.1%c
  • Adjusted earnings per share of 34.9p, up 17.1%c
  • Net cash flow of £29md after mandatory bond amortisation of £55m
  • Net debt of 4.2 times EBITDAe at year end (FY 2012: 4.5 times EBITDA)
  • Like-for-like sales up 0.1% in the first 8 weeks of FY 2014

Operational performance

  • Operating margin up 0.5 percentage points to 16.5%f
  • Good progress across all priority areas: people, practices, guests and profits
  • Staff turnover down 4 ppts and net promoter score up 4 ppts
  • New tills, payment systems, table management and kitchen management systems in full roll out

Property Estate

  • 16 new sites opened across the upmarket social, family and special market spaces
  • 17% EBITDA returns achieved on expansionary capex invested since FY 2011
  • £31m increase in property value as a result of annual revaluation and impairment review
  • Pipeline of new sites building for FY 2014 and beyond

Alistair Darby, Chief Executive, commented:

"We have worked hard this year to deliver our transformation plan and position Mitchells & Butlers for future growth. We are proud that, through the measures we have taken, we have been able to grow sales and build our margins in a challenging and competitive consumer environment, leading to EPS growth of 17%. I am confident that our continued emphasis on developing our people, focusing on our brands and delivering great service for our guests will result in a better business and produce sustainable value for shareholders in the future."

Definitions

a – Revenue growth is quoted against 52 week revenue in FY 2012, as detailed within the Financial Review.
b – 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 52 weeks to 28 September 2013, 96% of the UK managed estate is included in this measure.
c – Adjusted items are quoted before exceptional items and other adjustments and are compared to 52 week results in FY 2012, as detailed within the Financial Review.
d – Net cash flow is detailed within the Financial Review.
e – EBITDA is taken before exceptional items and other adjustments.
f – Operating margin is taken before exceptional items and other adjustments and is compared to 52 week results in FY 2012, as detailed within the Financial Review.

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: 020 3059 8125 and "Mitchells & Butlers". The replay will be available until 9 December 2013 on 0121 260 4861 replay access pin 6441528#.

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, Country Pubs, Sizzling Pubs, Crown Carveries, Oak Tree Pubs, All Bar One, Browns, Miller & Carter, Castle, 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 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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