subject: M&b Fy Results Swing Back To Black After Resilient 2009 Performance [print this page] Current trading is improving: there has been a recent small improvement in consumer confidence and like-for-like sales were up 3.2% in the
eight weeks to Nov. 21, the company said, adding that it has been hit by a wave of inflationary cost pressures, but offset some of that
through cost management.
The owner of pub chains such as All Bar One, O'Neill's traditional Irish pubs, Crown Carveries, Harvester, Toby Carvery and the Sizzling Pub
Co reported a net profit for the 12 months to Sept. 26 of 4 million after a net loss of 176 million a year ago.
Pretax profit for the year before exceptional items fell 24% to 134 million from 176 million, but still beat market expectations which
hovered around 125 million.
Full year revenue rose 2.6% to 1.96 billion.
Adam Fowle, Chief Executive, said:
"Mitchells & Butlers has produced a robust operational performance in challenging conditions. The Company has sold 129 million meals in the
year and grown average food sales per pub by 9%. The second half trend in net profit margin recovery continues. The first eight weeks of
the new financial year have started well and the strength of the Group's brands, locations, operational skills and cost management mean that
we are well positioned for the year ahead."
The estate numbers 1,065 pubs in the Pubs & Bars division and 816 managed pubs in the Restaurants division at the end of the period.
Colliers CRE and Andrew Cox MRICS, provided a Red Book valuation of a portion of the M&B estate. The revised net book value at 26 September
2009 of 4.5billion is 4% lower than the prior year and includes a downward adjustment in the accounting valuation of 2.3% or 106 million (a
total reduction of 9% over the last two years). This is mainly driven by reductions within Hollywood Bowl, the Lodge business, late evening
pubs and venues and a small number of drink focussed pubs where food development is limited. This will be reflected as a 52million
downwards valuation adjustment and a 71million impairment charge in the income statement with a net 17million revaluation uplift reported
as a reserves movement.
Operators who manage their own pubs, such as M&B and J.D. Wetherspoon, are much better equipped to deal with the downturn than those who
lease their pubs to individual landlords like Enterprise Inns and Punch Taverns, due to their direct control of prices and costs.
At Wednesday's close, M&B shares were at 257 pence in London. The company's resilient 2009 performance has seen its shares gain almost 80%
since the turn of the year, though they're still only half the level they were two years ago.
