Mitchells & Butlers is a strong business with a consistent record of clear sales outperformance against the market and an established strategy of strengthening the balance sheet by reducing net debt and gearing. This has put us in good shape to address the challenge we now face.
All sites have now been closed for over three weeks, and a number of actions have been taken to reduce our cost base:
- Over 99% of employees have been put on furlough, with basic pay for all employees including the Board reduced to between 60% and 80%, depending on seniority.
- Operating costs have been reduced to the minimum required to keep the estate secure, safe and in good condition.
- Discretionary capital expenditure projects have been stopped.
It is possible that the forced closure of our sites, as required by the Government, could amount to a technical breach of our secured financing arrangements but, as a first step, we are announcing today that a temporary waiver until 15th May has now been granted to avoid this pending further discussions.
Great uncertainty remains not only as to the extent of the current shutdown but also the profile of any reopening and recovery period back to normality. In light of this the group is in close contact with stakeholders, with whom it has strong relationships and who are supportive of the long-term fundamentals of the business.
The group has material cash resources which we believe should be sufficient to fund obligations well into the second half of the year.
For further information, please contact:
|Tim Jones - Chief Financial Officer||+44 (0)121 498 6112|
|Amy de Marsac - Investor Relations||+44 (0)121 498 6514|
|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 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.