MITCHELLS & BUTLERS PLC
LEI no: 213800JHYNDNB1NS2W10
25 November 2021
FULL YEAR RESULTS
(For the 52 weeks ended 25 September 2021)
|-||A return to profitability and cash generation in the period since restrictions were lifted|
|-||FY 2021 like-for-like salesa declined by 9.6% impacted by Covid-19 related restrictions|
|-||Like-for-like salesa growth of 2.7% in last eight weeks since the end of the financial year with total sales in growth of 0.5%|
|-||Strengthened balance sheet through successful £351m equity raise and refinanced debt arrangements|
|-||Adjusted operating profita £29m (FY 2020 £99m)|
|-||Second half sales of £846m (H2 FY 2020 £436m) demonstrating strong recovery on re-opening, full year revenue of £1,065m (FY 2020 £1,475m)|
|-||Adjusted second half operating profita £153m (H2 FY 2020 £(9)m)|
Balance sheet and cash flow
|-||Unsecured committed financing facilities of £150m to February 2024|
|-||Extended covenant waivers and amendments in place for the securitisation until Q4 2022|
|-||Cash inflow after bond amortisation of £70m (FY 2020 inflow £24m), including gross equity proceeds of £351m|
|-||Cash balances on hand of £227m at year end with liquidity facility fully repaid|
|-||Net debta reduced to £1,270m (FY 2020 £1,563m), excluding £513m of IFRS 16 lease liabilities (FY 2020 £541m)|
Phil Urban, Chief Executive, commented:
"Despite the inevitable challenges faced by our business over the past year we are now well positioned to regain the momentum previously built as we come out of the pandemic.
The trading environment remains challenging and cost headwinds continue to put pressure on the sector. However, we have strengthened our balance sheet and returned to profitability and cash generation, allowing us to resume our capital plan and Ignite programme which will deliver sales and efficiency improvements to help combat these challenges. Demand for our well-loved brands has been demonstrated by an encouraging return to sustained like-for-like sales growth since restrictions have been lifted, and we are confident in our ability to continue our recovery as a market leading operator."
a - The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. APMs are explained later in this announcement.
All sales measures are compared to FY 2019, being the last full year pre-Covid-19.
There will be a presentation held today at 8:30am accessible by phone on 0203 936 2999, access code: 456066 and www.incommuk.com/customers/online access code: 456066. The slides will also be available on the website at www.mbplc.com. The replay will be available until 9 December 2021 on 0203 936 3001, access code: 855923.
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 - Chief Financial Officer||+44(0)121 498 6112|
|Amy De Marsac - Investor Relations||+44(0) 7712 538660|
|James Murgatroyd (Finsbury)||+44(0)20 7251 3801|
Note for 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 Collection 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.
CURRENT TRADING AND OUTLOOK
Since trading resumed without restrictions on 19 July, we have seen an encouraging return to like-for-like salesa growth, helped by the lower rate of VAT on food and non-alcoholic drink sales. Since the year end, like-for-like salesa have been in growth of 2.7% as compared to the same period in FY 2019. However, cost headwinds present a major challenge to the hospitality sector as a whole, most notably in utilities and employment costs. Through accelerated and focused delivery of a new set of Ignite initiatives and tight control of the business we are working hard to mitigate these costs as far as possible, but there will inevitably be a residual impact on the current financial year's performance.
We successfully launched our Open Offer on 22 February, raising £351m. The equity raise, alongside the associated package of refinanced terms for our secured and unsecured debt, provides a strong platform of financial stability as we continue to rebuild the business after the disruption caused by the Covid-19 pandemic.
At the balance sheet date, the Group had cash balances on hand of £227m, with undrawn unsecured facilities of £150m.
Whilst uncertainty and challenges still remain, we are encouraged by the demand that we have seen since re-opening, supporting a return to profitability and cash generation.
The start of the year was dominated by the continuing effects of Covid-19 with increased trading restrictions, including the introduction of regional tiers, resulting in reduced guest visits in the lead up to the second four-week lockdown in England on 5 November.
Throughout closure periods we kept operating costs to a minimum, reduced discretionary capital expenditure and over 99% of employees were put on furlough. We continued to work hard to keep all our team members connected and informed through our support portal, launched last financial year, and social media platforms. The welfare and mental health of our team have continued to be a primary concern and we are encouraged by the way our teams have pulled together in this difficult time.
Trading recommenced on 2 December, but with even tighter restrictions within the regional tiers, including tier 3 areas remaining closed. Throughout December, restrictions became progressively tighter resulting in further site closures and significantly reduced sales activity over the important festive trading season followed by full closure of the estate for the third time from 30 December, ahead of the imposition of the wider third national lockdown on 4 January.
As a result, the Group's liquidity position deteriorated significantly over the first quarter. On 15 February we announced our intention to undertake an Open Offer to raise additional equity. In parallel with this process, we reached agreement with our relationship banks for a new £150m three-year unsecured facility and extended temporary waivers and amendments in place over the securitisation to avoid technical breaches that would have been incurred due to forced closure, both of which were conditional on completion of the Open Offer. The formation of the Odyzean Group was also announced, representing the combined shareholdings of Piedmont, Elpida and Smoothfield, demonstrating their support for the Company through this critical period.
The Open Offer was launched on 22 February, with the results published on 11 March confirming gross proceeds of £351m to provide funding for short-term working capital needs and to reduce the level of unsecured debt and strengthen the balance sheet. In particular, this enabled us to restart our estate investment strategy and maintain our strong competitive position, while continuing our focus on long-term deleveraging.
The estate remained closed until phased reopening began on 12 April with outdoor trading only which allowed 31% of the estate to open. On 17 May indoor trading was also permitted with Covid-secure procedures in place including table-service only, restrictions on group sizes and face coverings. A phased approach to reopening across our sites meant that by June 98% of the estate had reopened and from 19 July all restrictions were lifted.
Total sales across the full year were £1,065m reflecting these restrictions on trade and a total of 18 weeks of mandated closureb. Operating profit of £81m (FY 2020 £8m) was generated, with adjusted operating profita of £29m reflecting the strong return to profitability the business made when sites reopened.
Mitchells & Butlers has continued to play a role in the UK Hospitality forums that helped devise the Hospitality Sector Protocols Document and has lobbied the Government directly to support the sector during closure. We welcomed the Government's extended support through a reduced VAT rate on certain supplies and the business rates holiday, in addition to the security of employment provided by the furlough scheme enabling us to continue to protect the vast majority of our employees. However, we are disappointed that, going forward, Government support has been largely limited to small, independent operators.
Over this period, consumer trends such as home delivery have been accelerated and digital technology, that we were already implementing, has become increasingly important. Order-at-table, now successfully rolled out across the majority of our estate, has been particularly popular with our pub brands where we saw sales mix build whilst restrictions were in place. The usage of this technology has reduced since restrictions were lifted but levels remain significantly higher than before the pandemic.
The unprecedented challenges the industry has faced have had an unavoidable impact on market supply with an 8.6% decline in licensed premises since March 2020, according to the October AlixPartners CGA Market Recovery Monitor. We believe that the platform of financial stability provided through the equity raise leaves us well placed to benefit from these changes in the competitive landscape.
OUR STRATEGIC PRIORITIES
Despite the impacts of Covid-19, the fundamental strengths of our business remain and ensure we are well-positioned for the future. We have an 82% freehold estate, with recognised and diversified brands across a broad range of consumer demographics and geographical locations, and an experienced and proven management team with the focus to build on the momentum previously gained before the pandemic and the recovery that is being seen after the end to Covid-related restrictions. In the short to medium term, our priority is on successfully trading the business in the current challenging environment, ensuring the safety of our team members and guests, managing significant cost inflation and on growing the business back to, and beyond, the levels of trade that we were enjoying before Covid-19.
Our Ignite programme of work remains at the core of our long-term value creation plans and we have now reopened our project office and we are working on 43 fresh initiatives, some of which are already being implemented in the business. Our immediate focus, on reopening, was the successful rebuilding of trade following the extended periods of closure and we prioritised initiatives that support this, such as the enhancement and expansion of our delivery offer and the review of promotion and pricing at brand level. Going forward, as cost pressures mount beyond normal pre-pandemic levels, we are also increasingly focusing on initiatives which enhance efficiency and productivity, helping to offset some of these headwinds in areas such as optimal labour scheduling (increasing the efficiency with which we deploy our labour at site level), automatic product ordering (improving stock management and process efficiency), reduction of food and drink waste and enhancing capacity utilisation in our sites. We remain confident in our ability to deliver long-term and sustained efficiencies and business improvements through the existing Ignite programme.
We also resumed our capital programme which has been proven to deliver value by improving the competitive position of our pubs and restaurants within their local markets. We are committed to re-establishing a 6-7 year investment cycle and whilst we are likely to encounter short-term supply issues in terms of material procurement and contractor availability, which may affect progress in the current financial year, this continues to be a key focus for the business.
THE EXTERNAL ENVIRONMENT
In April, with the resumption of outdoor trading, like-for-like sales across the market, as measured by the Coffer Peach Tracker, opened in decline for the month of 26% against the comparable period in 2019, with total sales down 60% over the month reflecting the large proportion of sites which remained closed.
After trading restrictions were removed, sales across the market improved and like-for-like salesa growth was achieved in August and September. Performance was generally stronger in suburban locations than city centres, with consumers staying local during the pandemic and much of the workforce continuing to work from home. Footfall within major cities remained well below pre-pandemic levels making trading in city centres more challenging. However, footfall has been slowly increasing in cities and an improvement in performance has followed, a trend which is expected to continue. We believe that the desire to socialise in pubs and restaurants, and to share experiences which cannot easily be replicated at home, remains strong and that there is pent-up demand which has built during closure.
Digital technology became increasingly important in supporting the business during the pandemic. Technology allows the service cycle to be adapted whilst adhering to Government restrictions. Facilities such as guests' ability to make an order-at-table on their phone helped pubs and restaurants to reduce contact between teams and guests. Guests became more accustomed to digital elements of their experience in pubs and restaurants, such as scanning a QR code to access menus, and paying on their mobiles, and therefore the use of technology to enhance guests' experience has been accelerated due to the impacts of Covid-19.
Brexit remains an important event for the market and has created risks for the sector, principally around the supply and cost of products and workforce shortages. Risks in relation to procurement have been well managed by buying ahead to mitigate the potential lack of availability of products, reviewing and updating key contracts to maintain commerciality of agreements, identifying contingency markets and maintaining strong commercial relationships with key suppliers. Our apprenticeship programme has been a key asset in managing the risk around workforce shortage and remains a focus for the business going forward.
On a statutory basis, loss before tax for the year was £(42)m (FY 2020 loss £(123)m), on sales of £1,065m (FY 2020 £1,475m).
The Group Income Statement discloses adjusted profit and earnings per share information that excludes separately disclosed items to allow a better understanding of the trading of the Group. Separately disclosed items are those which are separately identified by virtue of their size or incidence.
|FY 2021||FY 2020||FY 2021||FY 2020|
|Loss before tax||(42)||(123)||(94)||(32)|
|1 Loss per share for the comparative periods have been restated to reflect the bonus element of the Open Offer share issue completed on 12 March 2021.|
The financial performance across both years has been significantly impacted by restrictions on trading and national shutdowns in response to the Covid-19 pandemic, in both the UK and Germany.
At the end of the period, the total estate comprised 1,732 sites in the UK and Germany of which 1,645 are directly managed.
Total revenue of £1,065m (FY 2020 £1,475m) was lower than last year due to restrictions on trading in response to Covid-19. Figures include the benefit of the temporary reduction in the rate of VAT on food and non-alcoholic drink sales worth £81m (FY 2019 £31m).
FY 2021 contained 18 weeks of enforced closure (defined as trading weeks where more than 90% of our estate was closed) and a further five weeks of outdoor trading only from 12 April to 16 May. The majority of our estate has been fully open for trading since 17 May and sales have gradually strengthened over this period as restrictions were relaxed.
The sales have been compared to FY 2019, being the last full year pre Covid-19. FY 2020 is not considered an appropriate comparison for trading performance due to the significant disruption caused to trade due to Covid-19 related restrictions and closures. As like-for-like salesa can only be measured when sites are trading the measure also excludes periods of closure in response to Covid-19.
Like-for-like salesa growth / decline against FY 2019:
|Weeks 1 - 14||Weeks 15 - 28||Weeks 29 - 43||Weeks 44 - 52||Weeks 1 - 52|
|FY 2021||FY 2021||FY 2021||FY 2021||FY 2021|
Across the year like-for-like salesa declined by (9.6)% with food salesa up by 2.5%, supported by reduced levels of VAT, and drink salesa down by (21.6)%. Against FY 2019 drinks volumes were in decline of (28.5%) reflecting the restrictions on solus drinking and the slower recovery of wet led brands particularly in larger city centres and outside of the higher energy younger pub and bar market. Food volumes, across the year, were in decline of (25.1%) with the increase in average spend per head reflecting the increasingly strong performance of premium offers.
For the eight weeks since the period end, like-for-like salesa against FY 2019 have increased by 2.7%, comprising an increase in like-for-like food salesa of 9.5% and a decrease of like-for-like drink salesa of (4.8)%. Volumes remain in decline of between 10% to 15%, with sales being driven by increases in spend per head and reduced VAT on food and non-alcoholic drink. Total sales in this period grew by 0.5%.
Separately disclosed items
Separately disclosed items are identified due to their nature or materiality to help the reader form a better view of overall and adjusted trading.
In the period a decision of a First-Tier tribunal in the case of the Rank Group Plc against HMRC in relation to VAT on gaming income, for the period post-2005, was given in favour of the taxpayers. HMRC has subsequently confirmed that it will not appeal against the decision and will now pay valid claims. As a result, the Group has resubmitted a claim covering the period from 2005 to 2012 and an estimate of the amount receivable, including interest, of £20m has been recognised in the current period. In the prior period a similar claim for the period pre-2005 of £13m had been recognised.
A £38m net movement is recognised relating to valuation and impairment of properties, comprising a £51m impairment reversal arising from the revaluation of freehold and long leasehold sites, net of a £3m impairment in relation to freehold and long leasehold tenant's furniture and fittings, a £2m impairment of short leasehold and unlicensed properties and a £8m impairment of right-of-use assets.
A charge of £4m was recognised in relation to stock write-offs as a result of Covid-19 mandated closure in the first half and a £3m past service cost in relation to guaranteed minimum pensions (GMPs) equalisation for the defined benefit pension schemes.
In addition to the tax impact of the above items, a £29m deferred tax charge has been recognised in the current period following the substantive enactment of legislation on 10 June 2021, which increased the UK standard rate of corporation tax from 19% to 25% from 1 April 2023.
The significant impact of Covid-19 closures and restrictions resulted in an adjusted operating profita of £29m (FY 2020 £99m). Throughout closure periods operating costs were kept to a minimum and over 99% of employees have been on furlough, amounting to £210m of UK Government support for employees through furlough grants during the period. Support to the Group itself continued in the form of a holiday from business rates, which was worth £75m in the period, and a reduction in the rate of VAT to 5% on non-alcoholic sales throughout the year which was worth £81m.
Operating margin, calculated on a statutory basis, of 7.6% was 7.1ppts higher than last year, materially impacted by property valuation and impairment reviews. Adjusted operating margina was 4.0ppts lower than last year at 2.7%, impacted by the significant periods of closure and other trading restrictions in response to Covid-19.
Prior to the Covid-19 pandemic the business faced inflationary cost headwinds in the region of £60m to £65m per year. In the short-term cost pressures are expected to be higher than average due principally to recent escalations in energy costs.
Net finance costs of £120m for the year were £7m lower than last year, with annual amortisation reducing the value of securitised debt. The net pensions finance charge was £3m (FY 2020 £4m). The net pensions finance charge for next year is expected to be £2m.
A number of the Group's financial instruments had LIBOR as their reference rate. The Group has now completed the necessary amendments to transition its financing arrangements in advance of the discontinuation of LIBOR as a floating reference rate, replacing LIBOR with a Sterling Overnight Index Average (SONIA) based rate in respect of Sterling, and a Secured Overnight Financing Rate (SOFR) based rate in respect of US Dollars, effective from 1 January 2022 and 1 July 2023 respectively.
The amendments in respect of the securitised bonds were agreed by the Bondholders through a formal consent solicitation process and bilateral agreements were reached with securitised swap and liquidity facility providers (using amended reference rates consistent with those agreed under the bonds).
The unsecured committed facility was originally arranged on a SONIA basis in February 2021, so did not require amendment.
Earnings per share
Basic loss per share, after the separately disclosed items described above, was (11.5)p (FY 2020 (23.6)p), adjusted loss per sharea was (13.6)p (FY 2020 (5.7)p). Loss per share for comparative periods has been restated to reflect the bonus element of the Open Offer share issue (see note 2.5).
The basic weighted average number of shares in the period was 566m and the total number of shares issued at the balance sheet date was 597m, following the equity raise and subsequent issue of an additional 167m shares.
|FY 2021||FY 2020|
|EBITDA before movements in the valuation of the property portfolio||182||255|
|Non-cash share-based payment and pension costs and other||13||5|
|Operating cash flow before adjusted items, movements in working capital and additional pension contributions||195||260|
|Working capital movement||7||20|
|Pension deficit contributions||(52)||(25)|
|Cash flow from operations||150||255|
|Net finance lease principal payments||(41)||(20)|
|Interest on lease liabilities||(21)||(8)|
|Net interest paid||(104)||(108)|
|Issue and purchase of shares||341||(1)|
|(Repayment)/drawings under liquidity facility||(9)||9|
|(Repayment)/drawdown of term loan||(100)||100|
|(Repayment)/drawdown of revolving credit facilities||(10)||10|
|Net cash flow before bond amortisation||174||119|
|Net cash flow||70||24|
The business generated £182m of EBITDA before movements in the valuation of the property portfolio.
Pension deficit contributions returned to committed levels, with FY 2020 lower due to an agreement with the schemes' Trustees to suspend contributions for six months to conserve liquidity during the period of shutdown in that year.
Share issue proceeds reflect the equity raise of £351m less £9m transaction fees, less £1m purchase of own shares.
After all outgoings including mandatory bond amortisation, cash flow generated was £70m (FY 2020 £24m).
Capital expenditure of £33m (FY 2020 £108m) comprises £29m from the purchase of property, plant and equipment and £4m in relation to the purchase of intangible assets. Capital expenditure was significantly below historic levels as part of the cash management strategy instigated in response to Covid-19.
|FY 2021||FY 2020|
|Remodels - refurbishment||9||21||54||139|
|Remodels - expansionary||1||2||2||5|
|Acquisitions - freehold||7||2||1||1|
|Acquisitions - leasehold||-||-||-||-|
|Total return generating capital expenditure||19||30||70||168|
|Total capital expenditure||33||108|
In line with our property valuation policy a red book valuation of the freehold and long leasehold estate has been completed in conjunction with the independent property valuer, CBRE. In addition, the Group has undertaken an impairment review on short leasehold and unlicensed properties and fixtures and fittings. The overall property portfolio valuation has increased by £196m (FY 2020 decrease of £208m) reflecting £46m separately disclosed in the income statement and a £150m increase in the revaluation reserve.
The Group continues to make pension deficit payments as agreed as part of the triennial pension's valuation with the schemes' Trustees at 31 March 2019, which showed an actuarial deficit of £293m. It was agreed that the deficit would continue to be funded by cash contributions of £49m per annum indexed with RPI from 2016 to 2023. In 2024 an additional payment of £13m will be made into escrow, should such further funding be required at that time.
During FY 2020, the Group agreed with the Trustees that the contributions into the Mitchells & Butlers Pension Plan and the Mitchells & Butlers Executive Pension Plan would be suspended in respect of the monthly contributions for the six months to September 2020 and those contributions have been added onto the end of the agreed recovery plan such that those contributions will now be payable in 2023. During FY 2021 an additional agreement was reached with the Trustees to delay monthly contributions from January to March 2021, inclusive, with these now all having been paid.
Judgement has now been made in relation to the court hearing concerning the rate of inflation to be applied to pensions increases for certain sections of the membership of the Mitchells & Butlers Pension Plan in excess of the guaranteed minimum pension. This has held that there had indeed been an error and the rules should be rectified as requested by the Trustee to remove the Company's power to determine the rate at which pensions are increased and to re-insert the Trustee's power to change the index used for pension increases. This means that pensions will be increased in line with RPI unless or until the Trustee decides to exercise its power to switch to another index at some point in future. This decision has no effect on the Plan's funding position, or the schedule of contributions payable by the Company, which have consistently been calculated assuming RPI indexation.
Net debta and facilities
Following the adoption of IFRS16 in the prior financial year, leases are now included in net debt. Net debta at the period end was £1,783m, comprised of £1,270m non-lease liabilities and lease liabilities of £513m (FY 2020 £2,104m comprised of £1,563m non-lease liabilities and lease liabilities of £541m).
On 14 February, the Group reached agreement with its three relationship banks for a new £150 million three-year unsecured facility. In addition, extended waivers and then amendments until January 2023 were agreed within the Group securitisation to provide flexibility and stability to manage the secured financing structure. Without these extensions certain breaches would have resulted due to the impact of Covid-19 and the measures taken to stem the spread of the virus. Both the unsecured and secured financing agreements were conditional on completion of the Open Offer. In addition, on completion of the Open Offer the full £100m of the CLBILS term loans was repaid. The details of these arrangements and an analysis of net debt can be found in note 10.
In securing these valuable amendments the Group has agreed not to pay an external dividend, undertake any share buy-backs, or repurchase bond debt until January 2023 at the earliest.
The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions in the application of accounting polies. Estimates and judgements are periodically evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Judgements and estimates for the period relate to;
- going concern assessment (note 1)
- separately disclosed items (note 3)
- property plant and equipment (note 8)
- leases (note 9)
- pensions (note 11)
After considering the forecasts, sensitivities and mitigating actions available to management and having regard to the risks and uncertainties to which the Group is exposed, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future, and operate within its borrowing facilities and covenants for a period of at least 12 months from the date of signing the financial statements. However, given the prevailing high level of unpredictability and uncertainty concerning the future incidence of the pandemic the Directors are unable to conclude that the prospect of either a further lockdown or of material restrictions being imposed on the Group's ability to trade is remote. Accordingly, the financial statements continue to be prepared on the going concern basis but with material uncertainty arising from the possible further impact of Covid-19 on the economy and the hospitality sector.
Full details are included in Note 1.
Director's responsibility statement
The 2021 Annual Report and Accounts which will be issued in December 2021, contains a responsibility statement in compliance with DTR 4.1.12 of the Listing Rules which sets out that as at the date of approval of the Annual Report on 24 November 2021, the Directors confirm to the best of their knowledge:
- the Group and unconsolidated Company financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and Company, and the undertakings included in the consolidation taken as a whole; and
- the performance review contained in the Annual Report and Accounts includes a fair review of the development and performance of the business and the position of the Group and the undertakings including the consolidation taken as a whole, together with a description of the principal risks and uncertainties they face.
This responsibility statement was approved by the Board of Directors on 24 November 2021 and is signed on its behalf by:
Chief Financial Officer
24 November 2021
a - The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. Key measures are explained later in this Report.
b - Mandated closure is defined as more than 90% of the estate being closed.
|Group income statement|
|For the 52 weeks ended 25 September 2021|
|52 weeks||52 weeks|
|separately disclosed||Separately disclosed||separately disclosed||Separately disclosed|
|Operating costs before depreciation, amortisation and movements in the valuation of the property portfolio||3||(898)||13||(885)||(1,221)||2||(1,219)|
|Share in associates results||1||1||(1)||(1)|
|Net profit arising on property disposals||-||1||-||-||-|
|EBITDAb before movements in the valuation of the property portfolio||168||14||182||253||2||255|
|Depreciation, amortisation and movements in the valuation of the property portfolio||3||(139)||38||(101)||(154)||(93)||(247)|
|Net pensions finance charge||5,11||(3)||-||(3)||(4)||-||(4)|
|(Loss)/profit before tax||(94)||52||(42)||(32)||(91)||(123)|
|(Loss)/profit for the period||12||(65)||(85)||(112)|
|a.||Separately disclosed items are explained and analysed in note 3.|
|b.||Earnings before interest, tax, depreciation, amortisation and movements in the valuation of the property portfolio. The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. These measures are explained later in this announcement.|
|c.||Loss per share for the comparative periods have been restated to reflect the bonus element of the Open Offer share issue completed on 12 March 2021. See note 7.|
All results relate to continuing operations.
|Group statement of comprehensive income/(expense)|
|For the 52 weeks ended 25 September 2021|
|52 weeks||52 weeks|
|Loss for the period||(65)||(112)|
|Items that will not be reclassified subsequently to profit or loss:|
|Unrealised gain/(loss) on revaluation of the property portfolio||8||150||(148)|
|Remeasurement of pension liability||11||9||3|
|Tax relating to items not reclassified||6||(97)||1|
|Items that may be reclassified subsequently to profit or loss:|
|Exchange differences on translation of foreign operations||(1)||-|
|Cash flow hedges:|
|- Gains/(losses) arising during the period||32||(43)|
|- Reclassification adjustments for items included in profit or loss||56||48|
|Tax relating to items that may be reclassified||6||(4)||5|
|Other comprehensive income/(expense) after tax||145||(134)|
|Total comprehensive income/(expense) for the period||80||(246)|
|Group balance sheet|
|25 September 2021||2021||2020|
|Goodwill and other intangible assets||13||14|
|Property, plant and equipment||8||4,442||4,305|
|Interests in associates||5||4|
|Finance lease receivables||14||15|
|Deferred tax asset||4||85|
|Derivative financial instruments||29||45|
|Total non-current assets||4,886||4,870|
|Trade and other receivables||48||41|
|Current tax asset||3||1|
|Finance lease receivables||1||2|
|Cash and cash equivalents||10||252||173|
|Total current assets||323||239|
|Trade and other payables||(333)||(314)|
|Current tax liabilities||(2)||-|
|Derivative financial instruments||(37)||(40)|
|Total current liabilities||(607)||(701)|
|Derivative financial instruments||(172)||(257)|
|Deferred tax liabilities||(346)||(302)|
|Total non-current liabilities||(2,498)||(2,731)|
|Called up share capital||12||51||37|
|Share premium account||12||356||28|
|Capital redemption reserve||3||3|
|Own shares held||(3)||(3)|
|Group statement of changes in equity|
|For the 52 weeks ended 25 September 2021|
|At 29 September 2019||37||26||3||1,267||(4)||(250)||14||830||1,923|
|Loss for the period||-||-||-||-||-||-||-||(112)||(112)|
|Other comprehensive income/(expense)||-||-||-||(150)||-||10||-||6||(134)|
|Total comprehensive income/(expense)||-||-||-||(150)||-||10||-||(106)||(246)|
|Share capital issued||-||2||-||-||-||-||-||-||2|
|Purchase of own shares||-||-||-||-||(2)||-||-||-||(2)|
|Release of own shares||-||-||-||-||3||-||-||(3)||-|
|Credit in respect of share-based payments||-||-||-||-||-||-||-||2||2|
|Tax charge on share-based payments||-||-||-||-||-||-||-||(2)||(2)|
|At 26 September 2020||37||28||3||1,117||(3)||(240)||14||721||1,677|
|At 26 September 2020 (revised)||37||28||3||1,117||(3)||(240)||14||722||1,678|
|Loss for the period||-||-||-||-||-||-||-||(65)||(65)|
|Other comprehensive income/(expense)||-||-||-||33||-||84||(1)||29||145|
|Total comprehensive income/(expense)||-||-||-||33||-||84||(1)||(36)||80|
|Purchase of own shares||-||-||-||-||(1)||-||-||-||(1)|
|Release of own shares||-||-||-||-||1||-||-||(1)||-|
|Credit in respect of share-based payments||-||-||-||-||-||-||-||3||3|
|Tax credit on share-based payments||-||-||-||-||-||-||-||2||2|
|At 25 September 2021||51||356||3||1,150||(3)||(156)||13||690|
a. Retained earnings at 26 September 2020 have been increased for the impact of Covid-19 related rent concessions agreed in the current period but relating to the 52 weeks ended 26 September 2020. See notes 1 and 9 for further details.
b. Details of the share capital and premium issued as part of the Open Offer share issue on 12 March 2021 are provided in note 12.
|Group cash flow statement|
|For the 52 weeks ended 25 September 2021|
|52 weeks||52 weeks|
|Cash flow from operations|
|Movement in the valuation of the property portfolio||(38)||93|
|Net profit arising on property disposals||(1)||-|
|Depreciation of property, plant and equipment||98||110|
|Amortisation of intangibles||4||3|
|Depreciation of right-of-use assets||37||41|
|Loss on disposal of fixtures, fittings and equipment||2||-|
|Cost charged in respect of share-based payments||3||2|
|Past service cost in relation to the defined benefit pension obligation||3||-|
|Administrative pension costs||5||2|
|Share of associates results||(1)||1|
|Impairment of finance lease receivables||2||-|
|Decrease in inventories||3||4|
|(Increase)/decrease in trade and other receivables||(7)||9|
|Increase in trade and other payables||10||6|
|Increase in provisions||1||1|
|Additional pension contributions||(52)||(25)|
|Cash flow from operations||150||255|
|Other interest paid - lease liabilities||(21)||(8)|
|Borrowing facility fees paid||(1)||(1)|
|Net cash from operating activities||25||127|
|Purchases of property, plant and equipment||(29)||(104)|
|Purchases of intangible assets||(4)||(4)|
|Proceeds from sale of property, plant and equipment||1||2|
|Finance lease principal repayments received||-||2|
|Net cash used in investing activities||(32)||(104)|
|Issue of ordinary share capital||12||342||2|
|Purchase of own shares||(1)||(3)|
|(Repayment)/drawings under liquidity facility||(9)||9|
|(Repayment)/drawdown of term loan||(100)||100|
|(Repayment)/drawdown of unsecured revolving credit facilities||(10)||10|
|Cash payments for the principal portion of lease liabilities||(41)||(22)|
|Net cash from financing activities||77||1|
|Net increase in cash and cash equivalents||70||24|
|Foreign exchange movements on cash||(1)||1|