REG - Mitchells & Butlers - First Quarter Trading Update

Mitchells & ButlersAnnouncement

07/01/2021 07:01

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RNS Number : 8428K  Mitchells & Butlers PLC  07 January 2021

7 January 2021

 

Mitchells & Butlers plc

LEI no. 213800JHYNDNB1NS2W10

 

First Quarter Trading Update

 

 

Trading statement covering the 14 weeks ended 2 January 2021.

 

Operating performance

 

Since the announcement of our Preliminary results on 26 November 2020 we have
emerged from the second national shutdown, the new regional tier system was
introduced and now we have entered a third national shutdown.  Over the
period, progressively tighter restrictions were imposed through December both
across the UK and in Germany resulting in an ever smaller number of sites open
and significantly reduced sales activity being possible through the important
festive trading season.

 

Since the UK government announcement reallocating regions in England between
tiers, on 30(th) December 2020, we have had no sites open.

 

Across the whole of the first quarter total sales were 67.1% below prior year.
On a like-for-like basis (for sites when open, excluding periods of closure)
trading has been 30.1% down on prior year across this period.

 

Throughout, we have again reduced discretionary capital expenditure and
operating costs to a minimum.

 

Cash and Balance Sheet

 

The group currently has cash balances on hand of £125m, with all facilities
drawn. With no sites trading, ongoing monthly cash burn has returned to the
level previously disclosed in relation to the last shutdown, at approximately
£35m to £40m before payment of debt service (representing interest and
amortisation) of £50m per quarter. The next quarter payment date for debt
service is 15 March 2021.

 

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.

 

The Board, which includes representatives of the major shareholders, is
unanimous in its support for these actions being taken.

 

Phil Urban, Chief Executive, commented:

 

"We are now in a third national lockdown. I am consistently impressed by the
resilience and energy of our teams as we repeatedly open and close businesses
that we have invested in to make Covid secure and urge the government to
better understand the huge impact these restrictions are having on the
hospitality sector. The Job Retention Scheme is temporarily protecting some
employment but there is a real and pressing need for support for businesses
themselves if we are to return to being the vibrant sector and important
employers that we were.

 

Mitchells & Butlers was a high performing business going into the pandemic
and with the support of our main stakeholders I have every confidence that we
can emerge in a strong competitive position once the current restrictions on
us are lifted."

 

 

 

For further information, please contact:

 

 Tim Jones - Chief Financial Officer  +44 (0)121 498 6112
 Amy de Marsac - Investor Relations   +44 (0)121 498 6514
 James Murgatroyd (Finsbury)          +44 (0)20 7251 3801

 

Note for editors:

 

 Mitchells & Butlers is a leading operator of managed restaurants and pubs.
 Its portfolio of brands and formats includes Harvester, Toby Carvery, All Bar
 One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse,
 Vintage Inns, Browns, Castle, Nicholson's, O'Neill's and Ember Inns. In
 addition, it operates Innkeeper's Collection hotels in the UK and Alex
 restaurants and bars in Germany. Further details are available at
 www.mbplc.com (http://www.mbplc.com) and supporting photography can be
 downloaded at www.mbplc.com/imagelibrary (http://www.mbplc.com/imagelibrary)
 .

 

 

 

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