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02/07/2020

Half Year Results 2020

Mitchells & Butlers company news

(For the 28 weeks ended 11 April 2020)

Highlights

  • Strong operational performance demonstrated before lockdown
  • Rapid and effective action taken to protect guests and team members and to reduce costs
  • New financing arrangements provide security and flexibility
  • Experience of German business provides clear path for re-opening
  • Well positioned to benefit from recovery on re-opening

Reported results

  • Total revenue of £1,039m (HY 2019 £1,186m)
  • Operating (loss)/profit of £(51)m (HY 2019 £140m)
  • (Loss)/profit before tax of £(121)m (HY 2019 £75m)
  • Basic (loss)/earnings per share of (25.0)p (HY 2019 14.3p)

Trading results

  • First half trading includes nearly four weeks of enforced closure due to Covid-19
  • Like-for-like salesa growth of 0.9% before closure remained consistently ahead of the marketb
  • Adjusted operating profita £108m (HY 2019 £151m)
  • Adjusted earnings per sharea 7.2p (HY 2019 16.1p)

Balance sheet and cash flow

  • Unsecured committed financing facilities extended by £100m to total £250m to 31 December 2021
  • Capital investment of £82m (HY 2019 £90m), including 2 new site openings and 166 conversions and remodels (HY 2019 208)
  • Cash flow of £58m (HY 2019 £23m)
  • Full property valuation and impairment review undertaken resulting in an overall decrease in book value of £524m
  • Net debt of £2.2bn including £543m of lease liabilities following adoption of IFRS 16

Phil Urban, Chief Executive, commented:

"The business was performing very well before the enforced closure in response to Covid-19, building on the strengths of our estate of mainly freehold properties, our diversified and well-loved brands and our team's industry leading operational skills. These assets, coupled with our early experience of re-opening in Germany, give us a clear plan for re-opening and ensure that we are well placed to continue to bring people and communities together and to keep Mitchells & Butlers at the forefront of the eating and drinking-out market."

Definitions

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.

b – As measured by the Coffer Peach business tracker.

There will be a conference call held today at 8:30am accessible by phone on 0203 936 2999, access code 471216, slides will be available on the website at www.mbplc.com. The replay will be available until 16 July 2020 on 0203 936 3001, access code 174438.

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 6552
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 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.

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