(For the 53 weeks ended 30 September 2017)
- Like-for-like sales growth maintained
- Consistent sales outperformance of market
- Performance reflects successful implementation of strategy
- Full year like-for-like sales a up 1.8% and up 2.3%a in recent 7 weeks
- Adjusted operating profit of £314mb, down 3.1% on a 52 week basis
- Adjusted earnings per share of 34.9pb, down 1.4% on a 52 week basis
- Completed 252 return generating projects with focus on premiumisation or amenity enhancement
- Disposal of 79 sites not offering long term growth potential
- Improved guest care and responsiveness; net promoter score increased by 7.8ppts
- Time and attendance system now live; stock control system upgraded
- Improved employee engagement; pub staff turnover reduced by 4.1%
- Total revenue of £2,180m (FY 2016 £2,086m)
- Operating profit of £208m (FY 2016 £231m)
- Profit before tax of £77m (FY 2016 £94m)
- Basic earnings per share 15.1p (FY 2016 21.6p)
Balance sheet and cash flow
- Capital expenditure of £169m (FY 2016 £167m), including 13 openings of new sites and 252 conversions and remodels (FY 2016 8 new sites and 252 conversions and remodels)
- Cash flow of £103mc (FY 2016: £60m)
- Net debt of £1.75bn (FY 2016 £1.84bn) representing 4.2 times adjusted EBITDAd (FY 2016 4.3 times)
- Final dividend of 5.0p recommended. No interim dividend in the current financial year pending assessment at year end of capital allocation and prospects.
Phil Urban, Chief Executive, commented:
"This year, we have continued to make progress on our three priority areas: building a more balanced business; instilling a more commercial culture; and driving an innovation agenda. This has resulted in a period of strong operational achievement for Mitchells & Butlers with a sustained return to like-for-like sales growth driving market outperformance. We have also gained agreement with the pensions trustees on future pension contributions which gives clarity to shareholders and pensioners alike.
Cost headwinds across the industry have adversely affected margins but we continue to work hard to mitigate as much of these as possible through our focus on efficiency and profitable sales growth.
Overall, we believe that the progress we have made this year positions the Company well to deliver long-term shareholder value."