Mitchells & Butlers has reported its results for the half year to 11 April and showing profit up 9.5%, like-for-like sales growth 1.7%, like-for-like food volume up 2.9%. Alistair Darby, Chief Executive, commented:
“We have made good progress in the first half with continued strong food volume growth driving improved sales. Our Orchid integration plan is being successfully executed; the office is now closed and the first sites have been converted to our brands with encouraging sales uplifts.
“The market in which we operate remains challenging despite growing consumer confidence. However, we are confident that our business is well placed to capitalise on opportunities in the market and deliver future shareholder value.”
Douglas Jack of Numis commented:
“Mitchells & Butlers (Add, TP: 500p) Better than expected LFL sales
“H1 PBT is up 4% to £75m (we forecast £76m; consensus £75m), with total sales up 9.5% (of which 1.7% was LFL) and EBIT margins down 80bps. We are holding our full year forecasts overall, but with revised full year assumptions of 2.0% LFL sales (from 1.5%) and 30bps EBIT margin decline (from 25bps).”
Financial performance
- Total revenue £1,113m, up 9.5%
- H1 2015 like-for-like sales growth 1.7%
- Adjusted operating profit £153m, up 4.1%
- Adjusted earnings per share 14.4p, up 5.9%
- Net cash flow £47m (H1 2014 £43m)
Balance sheet and cash flow
- Capital expenditure up to £94m (H1 2014: £86m), 9 new site openings and 23 conversions
- Net debt reduced from year end to £1.9bn representing 4.4 times EBITDA
Operational performance
- Like-for-like food volume growth strengthens to +2.9% (H1 2014 +0.2%)
- Operating margin 13.7% (H1 2014 14.5%) reflects Orchid and volume-driven sales growth
- Staff turnover at historical low of 77% (FY 2014 78%); net promoter score up to 65% (FY 2014 63%)
- New EPOS systems live across whole estate
- Orchid integration on track: office closed, synergies created, conversions performing strongly
Mitchells & Butlers is the UK’s largest 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.
For more information click here