A picture of the Mitchells & Butlers logo

Information centre

Information centre story index


Full Year Results 2014

(For the 52 weeks ended 27 September 2014)

Business gathers momentum

Financial performance

  • Total revenue of £1,970m, up 4.0%
  • FY 2014 like-for-like sales growth of 0.6%a
  • Like-for-like sales growth of 2.4% in the first eight weeks of FY 2015
  • Operating profit before exceptionals of £313mb, up 1.0%
  • Net pensions finance charge of £10m (FY 2013 £11m) reclassified into underlying profit before exceptionals with restatement
  • Earnings per share before exceptionals of 32.6pb, up 1.2%
  • Net cash outflow of £(199)mc

Reported results

  • Profit before tax: £123m (FY 2013 £142m)
  • Basic earnings per share: 22.6p (FY 2013 31.2p)

Balance sheet and cash flow

  • Capital expenditure increased to £162m (FY 2013: £128m), including 23 new site openings and 8 conversions
  • £258m cash invested in the acquisition of 173 largely freehold, well-located pubs from the Orchid Group in June
  • Net debt of £1.96bn representing 4.5 times annualised EBITDAd

Operational highlights

  • Strengthening food volume performance: like-for-like food volume growth +0.9% (FY 2013 -4.3%)
  • Operating margin 15.9%e
  • Staff turnover at historical low of 78% and net promoter scoref growing strongly to 63% (FY 2013 59%)
  • Remodel programme generating strong returns
  • Executive team strengthened

Alistair Darby, Chief Executive, commented:

"In the last year we have made significant progress, investing in the business for future growth. We completed the acquisition of Orchid, accelerated remodel and expansionary capex and have made a substantial investment in our systems. At the same time we have maintained our focus on the delivery of our four key priorities. In the year ahead, we will continue these actions.

The business is gathering momentum and we have made an encouraging start to the year. We expect to benefit further from these investments during this financial year."


a – Like-for-like sales growth includes the sales performance against the comparable period in the prior year of all UK managed pubs, bars and restaurants that were trading in the two periods being compared. For the 52 weeks to 27 September 2014, 96% of the UK managed estate (excluding Orchid) is included in this measure. b – Adjusted items are quoted before exceptional items as noted in the Group Income Statement.
c – Net cash flow excludes £58m mandatory bond amortisation; £25m transferred to cash from other cash deposits and £147m which the Group was obliged to draw down from a liquidity facility under the terms of the securitisation. Net cash flow is detailed within the Financial Review.
d – Adjusted EBITDA for the 52 weeks to 27 September 2014, including the estimated annualised full-year impact of Orchid.
e – Operating margin is taken before exceptional items.
f – Net promoter score is defined as the percentage of responses where we score 9 or 10 out of 10 ('brand promoters') less the percentage of responses where we score 0 to 6 ('brand detractors') to the statement "I am likely to recommend this pub to a friend and / or relative". Responses scoring 7 or 8 ('passives') are ignored in the calculation.

There will be a presentation for analysts and investors at 9.00am 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 quote "Mitchells & Butlers". The replay will be available until 8 December 2014 on 0121 260 4861 replay access pin 8262392#.

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 6112
James Murgatroyd (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 135 million meals and 435 million drinks each year and is one of the largest operators within the UK's £78 billion eating and drinking out market.

Information centre story index