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Final Results announcement 2017821.4 kBDownload analyst presentation3.32 MBSecuritised debt service profile66.44 kBDownload Q&A transcription198.01 kB

(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

Financial performance

  • 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

Strategic progress

  • 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%

Reported results

  • 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."

a - Like-for-like sales growth reflects the sales performance against the comparable period in the prior year of UK managed pubs, bars and restaurants that were trading in the two periods being compared, unless marketed for disposal. Like-for-like sales are measured against relevant accounting weeks in the prior year with full year like-for-like sales growth measured on a 53 week basis. There is a reconciliation of this measure after the notes to this announcement.

b - Adjusted earnings are quoted before separately disclosed items as set out in the Group Income Statement and detailed in note 3 of the accounts. There is a reconciliation of this measure after the notes to this announcement.

c - Cash flow excludes £12m cash dividend payment (FY 2016 £31m); £77m mandatory bond amortisation (FY 2016 £67m) and net £(25)m movement on unsecured revolving facilities (FY 2016 £31m). There is a reconciliation of this measure after the notes to this announcement.

d - EBITDA before separately disclosed items on 52 week basis is used to calculate net debt to EBITDA. There is a reconciliation of this measure after the notes to this announcement.

There will be a presentation today for analysts and investors at 8.45am at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. 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 2017 on 0121 260 4861 replay access pin 7354079#.

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
Amy De Marsac - Investor Relations
+44(0) 7712 538660
James Murgatroyd (Finsbury)
+44(0)20 7251 3801

Notes for editors:

  • Mitchells & Butlers is a leading operator of managed restaurants and pubs. Its strong portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Crown Carveries, 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.