Mitchells & Butlers PLC (LON:MAB), today announced full year results for the 52 weeks ended 29 September 2018.
Phil Urban, Mitchells & Butlers Chief Executive commented:
“Focus on our three priority areas of building a more balanced business; instilling a more commercial culture; and driving an innovation agenda has continued to move the business forward over the financial year. The implementation of the second wave of initiatives from our transformation programme has resulted in sustained like-for-like sales growth, continued market out-performanceb and a return to profit growth in the second half despite Easter moving into the first half.
We continue to work hard on driving efficiency gains and profitable sales growth through the ongoing roll out of initiatives to mitigate the cost headwinds impacting the industry.
Overall, the Company is positioned well to continue creating shareholder value in the long term.”
Financial performance
-Full year like-for-like sales up 1.3% and up 2.2%a in recent 7 weeks
-Adjusted operating profit of £303ma, down 1.6% on a 52 week basis
-Adjusted operating profit growth in second half of £3m
-Adjusted earnings per share of 34.1pa, down 0.9% on a 52 week basis
Strategic progress
-Sustained like-for-like sales growth remains ahead of the market
-£28m of savings achieved to mitigate continuing inflationary cost headwinds
-Completed 232 return generating projects with focus on premiumisation or amenity enhancement
-Improved guest care and responsiveness; 93% of online reviews responded to, up 10ppts
-Improved employee engagement; pub management turnover reduced 2.6ppts
Reported results
-Total revenue of £2,152m (FY 2017 £2,180m)
-Operating profit of £255m (FY 2017 £208m)
-Profit before tax of £130m (FY 2017 £77m)
-Basic earnings per share 24.5p (FY 2017 15.1p)
Balance sheet and cash flow
-Capital expenditure of £171m (FY 2017 £169m), including 7 openings of new sites and 232 conversions and remodels (FY 2017 13 new sites and 252 conversions and remodels)
-Adjusted free cash flowa of £(19)ma (FY 2017 £14m)
-Net debt of £1.69bn (FY 2017 £1.75bn) representing 4.0 times adjusted EBITDAa (FY 2017 4.2 times)
-Prioritising estate investment and de-leverage against a challenging back drop as previously outlined, no final dividend declared
