(For the 52 weeks ended 26 September 2015)

Strong earnings growth and resumption of dividend

Financial performance

  • Total revenue of £2,101m, up 6.6%
  • FY 2015 like-for-like sales growth of 0.8%a
  • Adjusted operating profit of £328mb, up 4.8%
  • Adjusted earnings per share of 35.7pb, up 9.5%
  • Adjusted net cash inflow of £89mc (FY 2014 £199m outflow)
  • Final dividend of 5p recommended

Reported results

  • Profit before tax: £126m (FY 2014 £123m)
  • Basic earnings per share: 25.0p (FY 2014 22.6p)

Balance sheet and cash flow

  • Capital expenditure £162m (FY 2014: £162m), including 14 new site openings and 51 conversions
  • Net debt of £1.87bn representing 4.3 times annualised adjusted EBITDA (FY 2014 4.5 times)

Operational highlights

  • Adjusted operating margin 15.6%b (FY 2014: 15.9%), impacted by Orchid
  • Orchid integration on track with 41 completed conversions performing well and closure of head office

Phil Urban, Chief Executive, commented:

"In the last year we have increased our earnings by 9.5%b, and I am delighted to announce the resumption of the dividend.

Since joining Mitchells & Butlers in January I have seen first-hand the potential within the business. The market remains highly competitive but I have identified our key priorities to realise that potential. We will build a more balanced business; instil a more commercial culture; and increase the pace of execution and innovation. We are confident that with this approach we will drive sustained profit growth and enhanced shareholder returns."

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. Like-for-like sales are measured against relevant accounting weeks in the prior year.
b - Adjusted earnings are quoted before exceptional items as set out in note 3 in the Group Income Statement.
c - Adjusted net cash flow excludes £61m (FY 2014 £58m) mandatory bond amortisation; £120m (FY 2014 £25m) transferred from cash to other cash deposits and, in the prior year, £147m which the Group was obliged to draw down from a liquidity facility under the terms of the securitisation. Adjusted net cash flow is detailed within the Financial Review.

There will be a presentation for analysts and investors at 8.15am 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: 0203 059 8125 and quote "Mitchells & Butlers". The replay will be available until 30 November 2015 on 0121 260 4861 replay access pin 2071292#.

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 Cooper - Investor Relations
+44(0)121 498 4525
James Murgatroyd (Finsbury)
+44(0)20 7251 3801

Notes for editors:

  • Mitchells & Butlers is a leading 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 140 million meals and 430 million drinks each year and is one of the largest operators within the UK's £80 billion eating and drinking out market.