Mitchells & Butlers has reported for the 28 weeks ended 13 April 2013 with Alistair Darby, Chief Executive, commenting:
“These results demonstrate the progress we are making through our business change programme. We are growing sales and profit in a tough market by building on the firm foundations of our excellent estate, strong brands, dedicated people and substantial scale.
“Having now delivered our restructuring cost savings in full, we have identified specific market segments where we can grow successfully and we have outlined clear operational priorities. By focusing on these areas, I believe that we will provide great experiences for our guests and sustainable returns for our shareholders.”
Statutory results
- Profit before tax: £72m (H1 2012: £42m)
- Basic earnings per share: 14.1p (H1 2012: 8.8p)
Financial highlights
- Total revenue of £991m, up 2%
- Like-for-like sales growth of 0.3%a
- Adjusted operating profit of £145mb, up 5%
- Adjusted earnings per share of 14.6pb, up 17%
- Net cash inflow of £70mc before mandatory bond amortisation of £27m
- Net debt of £1.8bn representing 4.3 times adjusted EBITDAd
Operational highlights
- Restructuring cost savings delivered in full
- Further investment made in guest service through ongoing business transformation programme
- Operating margin up 40 basis points to 14.6% against H1 2012
- EBITDA returns of 17% achieved on expansionary capex invested since FY 2011
Strategic progress
- ‘Five star’ approach to the market to align strategy with growth potential
- Future investment focused on attractive market spaces: Upmarket Social, Family and Special
- Clear operational priorities: people, practices, guests and profits
Definitions
a – Like-for-like sales growth includes the sales performance against the comparable period in the prior year of all UK managed pubs that were trading in the two periods being compared. For the 28 weeks to 13 April 2013, 95% of the UK managed estate is included in this measure.
b – Adjusted items are quoted before exceptional items and other adjustments as noted in the Group Income Statement.
c – Net cash flow is detailed within the Financial Review.
d – Adjusted EBITDA for the 52 weeks to 13 April 2013.
Mitchells & Butlers
Is the UK’s largest operator of managed restaurants and pubs with a portfolio of brands and formats including Harvester, Toby Carvery, Vintage Inns, Premium Country Dining Group, Crown Carveries, Village Pub & Kitchen, Sizzling Pubs, All Bar One, Browns, Miller & Carter, Castle, Alex, Nicholson’s, O’Neill’s, Oak Tree Pubs and Ember Inns. Serving around 130 million meals and 410 million drinks each year, it is one of the largest operators within the UK’s £75 billion eating and drinking out market.