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https://www.lemonfool.co.uk/
Operating performance
Since our last update sales have continued to outperform the market. In the 8 weeks to 21 September like-for-like sales grew by 3.3% with drink sales growth particularly strong.
Total sales have increased by 4.0% in the year-to-date.
-Strong adjusted profit before tax growth, up 10.7%
-Continued market outperformanceb
Reported results
-Total revenue of £2,237m (FY 2018 £2,152m)
-Operating profit of £297m (FY 2018 £255m)
-Profit before tax of £177m (FY 2018 £130m)
-Basic earnings per share of 33.5p (FY 2018 24.5p)
Trading results
-Like-for-like sales growth of 3.5%
-Adjusted operating profit growth of £14m to £317m (FY 2018 £303m)
-Adjusted earnings per share growth of 9.1% to 37.2p (FY 2018 34.1p)
Operational highlights
-Strong trading with market outperformance and profit growth
-Improved returns from capital programme of 21%, up 5ppts
-Strong performance across the brand portfolio driven by sales initiatives
-Efficiencies resulted in increased operating margin of 14.2% (FY 2018 14.1%)
Balance sheet and cash flow
-Capital expenditure of £152m (FY 2018 £171m), including 7 new site openings and 240 conversions and remodels (FY 2018 232)
-Adjusted free cash flow of £11m (FY 2018 £(19m))
-Net debt reduced to £1.56bn (FY 2018 £1.69bn) representing 3.6 times adjusted EBITDA (FY 2018 4.0 times)
Capital allocation policy and dividends
The Company has obligations, notably in respect of debt service and pension fund contributions, after which investment in the estate and distribution to shareholders can be considered. Subsequent capital allocation decisions are made primarily to protect the ongoing and future health of the business and, as previously stated, when assessing dividends the Board would not expect to see a structural, or permanent, increase in the use of short term facilities.
Given this capital allocation framework combined in particular with the uncertain political and economic outlook, the Board does not propose a final dividend for the year
The Board keeps its dividend policy under review as appropriate in the context of its capital allocation policies, capital structure, and visibility on trading.
MDW1954 wrote:Improving results, to be sure, but the mood music re: dividends doesn't sound too promising. FCF not too brilliant, either, at a first glance.
MDW1954
Bouleversee wrote:I haven't tried any of their restaurants. Are they any good?
Bouleversee wrote:I also have them in a small ISA which I rarely look at, as a result of the Six C. spin-off and got quite excited when I read on the ADVFN bulletin that their pre-tax profit had increased by 36.2%, though that doesn't seem to mean much. 3/4 analysts on HL are recommending them as a strong buy but I think I'll pass on that in the absence of any dividends whatsoever and the threat of increased wages. I wonder what the directors' remuneration did. I haven't tried any of their restaurants. Are they any good?
Bouleversee wrote:I did have a look some years ago but that doesn't tell you how good they are. IIRC I think there were only Harvesters nearby (which I suspect would not be my scene) but I'll have another look. If I take all my family out the discount would be useful.
daveh wrote:Bouleversee wrote:I also have them in a small ISA which I rarely look at, as a result of the Six C. spin-off and got quite excited when I read on the ADVFN bulletin that their pre-tax profit had increased by 36.2%, though that doesn't seem to mean much. 3/4 analysts on HL are recommending them as a strong buy but I think I'll pass on that in the absence of any dividends whatsoever and the threat of increased wages. I wonder what the directors' remuneration did. I haven't tried any of their restaurants. Are they any good?
The two I've tried are All Bar One, they did our Christmas meal last year which I thought was very reasonable with 20% off the whole bill - the post grads were well pleased. Though this year we are going to The Illicit Still just up the road as they gave us a better deal (its not a chain just a local pub). The other is Miller and Carter, I've taken my elderly Mum twice who likes her food pretty bland and we've had good posh burgers there. Providing you're not vegie (not a lot of choice) I'd take people to both places again.
On the shares front they seem to be up to day in a falling market and have nearly doubled over the year (273 on 30nov18 464 today). So when I was thinking of selling last year they would have been a very good buy for capital growth.
When I looked them up again today, I realised that I was confusing them with my other similar holding, Marston's. In fact, I have tried one local pub/restaurant on the MB list (The Apple Tree in Gerrards Cross) which was quite nice when I took my daughter one lunchtime but not very good and very slow service when I took my son one evening. I might give it another go or try some of the others, not that I eat out often.Bouleversee wrote:In fact, I have tried one local pub/restaurant on the MB list (The Apple Tree in Gerrards Cross) ... I might give it another go or try some of the others, not that I eat out often.
The group traded well over the core three-week festive period, with like-for-like sales growth of 5.6%, including strong performances on all of the key festive days.
Overall sales have strengthened over the period since our last update with like-for-like growth of 3.5%, with particularly strong food sales growth.
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
Since the UK government announcement reallocating regions in England between tiers, on 30th December 2020, we have had no sites open.
We welcome recent positive news on vaccine approval and roll-out but the future facing the hospitality sector remains extremely uncertain. It is not possible to estimate with any confidence what restrictions on our ability to trade lie ahead of us and for how long. As a result, the directors believe it is prudent to explore an equity capital raise, to give the group increased financial and operational flexibility. No decision has yet been made with regards to the timing, size, or terms of any such equity capital raise.
Following the announcement made by Mitchells & Butlers on 7 January 2021, regarding its intention to explore an equity capital raise, the Board of Mitchells & Butlers plc (the "Company" and, together with its subsidiaries, "Mitchells & Butlers" or the "Group"), today announces that it intends to raise £350 million by means of an underwritten fully pre-emptive open offer (the "Proposed Open Offer"). The Proposed Open Offer will include a facility for shareholders to apply for any shares not taken up by other shareholders, up to a maximum amount depending on their existing shareholdings in Mitchells & Butlers (the "Excess Application Facility").