REG - Mitchells & Butlers - Full Year Results
Today 07:00
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RNS Number : 3578J Mitchells & Butlers PLC 28 November 2025
MITCHELLS & BUTLERS PLC
LEI no: 213800JHYNDNB1NS2W10
28 November 2025
FULL YEAR RESULTS
Another Year of Strong Trading Ahead of the Market
(For the 52 weeks ended 27 September 2025)
Highlights
- Strong trading ahead of the market(b) with like-for-like sales(a) growth of
4.3%
- Adjusted operating profit(a) of £330m up 5.8% from prior year
- Increased adjusted operating margin(a) of 12.2% (FY 2024 12.0%)
- Strong cash flows reducing net debt (excluding leases) by £146m
Reported results
- Total revenue of £2,711m (FY 2024 £2,610m)
- Operating profit of £322m (FY 2024 £300m)
- Profit before tax of £238m (FY 2024 £199m)
- Basic earnings per share of 29.7p (FY 2024 25.0p)
Trading results
- Adjusted operating profit(a) £330m (FY 2024 £312m)
- Adjusted earnings per share(a) of 30.9p (FY 2024 26.4p)
Balance sheet and cash flow
- Net debt(a) reduced to £843m (FY 2024 £989m), excluding £434m of IFRS 16
lease liabilities (FY 2024 £447m)
- Net asset value increased to 476p per share (FY 2024 433p)
- Pension surplus used to offset against ongoing DC contributions equating to
c.£10m pa
Operational highlights
- Strong performances across all market segments
- Accelerated capital programme delivering strong returns
- Record non-financial metrics across guest, employee and safety scores
Current trading
- Solid start to FY 2026, like-for-like sales(a) of 3.8% in the first eight
weeks
Phil Urban, Chief Executive, commented:
"We are pleased to report another year of strong performance. Like-for-like
sales(a) continued to outperform the market(b) across all segments,
reinforcing the strength of our strategy and market positioning. Combined with
disciplined operational execution, this delivered robust profit growth
mitigating sector-wide cost headwinds.
As we look to the year ahead, we anticipate increased cost pressures across
the sector. However, we remain confident in our ability to manage these
challenges through our established Ignite improvement programme and
disciplined capital investment strategy. Our market-leading estate and
diversified guest propositions provide a strong foundation for resilience and
growth, enabling us to capture incremental market share and deliver continued
long-term outperformance"
Definitions
a - The Directors use a number of alternative performance measures (APMs) that
are considered critical to aid the understanding of the Group's performance.
APMs are explained later in this announcement.
b - As measured by the CGA Business Tracker.
There will be a presentation held today at 8:30am accessible by phone on 0203
936 2999, access code: 247263 and at
https://www.netroadshow.com/events/login/LE9zwo4Aq8L56SCsV3LTjUWoMpQlWQqdcQD
(https://www.netroadshow.com/events/login/LE9zwo4Aq8L56SCsV3LTjUWoMpQlWQqdcQD)
The slides will also be available on the website at www.mbplc.com
(http://www.mbplc.com) . The replay will then be available at
https://www.mbplc.com/fy2025/analystspresentation
(https://www.mbplc.com/fy2025/analystspresentation) .
All disclosed documents relating to these results are available on the Group's
website at www.mbplc.com (http://www.mbplc.com)
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 (FGS Global) +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, Ember Inns, Ego
Restaurants and Pesto. 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 and supporting photography can be downloaded at
www.mbplc.com/imagelibrary (http://www.mbplc.com/imagelibrary) .
CURRENT TRADING AND OUTLOOK
We traded strongly throughout the year with like-for-like sales(a) growth of
4.3% built on strong performances across the brand portfolio. We remained
ahead of the market(b) in each segment reported by the CGA Business Tracker,
supported by broadly flat volumes across the period. Combined with disciplined
cost control, further Ignite efficiencies and strong returns from our capital
programme, this delivered growth of 5.8% in adjusted operating profit(a) to
£330m (FY 2024 £312m) despite well publicised cost pressures.
Over the most recent 8 weeks like-for-like sales(a) have strengthened from the
final quarter of FY 2024, growing by 3.8% despite uncertainty ahead of the
Chancellor's Autumn Budget. Looking forward, Lumina Intelligence forecasts
the UK eating out market to grow by 2.4% in 2026 (UK Eating Out Market Report,
2025), against which we expect to maintain our outperformance.
During FY 2026 we anticipate cost headwinds of c.£130m, representing slightly
less than 6% of our cost base before mitigation, driven by annualisation of
labour cost increases, plus further increases in the statutory thresholds, and
increased levels of food cost inflation. This includes our preliminary
assessment of the impact of the Chancellor's recent Autumn Budget, pending
clarification of further detail. We believe that our strong market position,
together with the success of our Ignite improvement programme, should enable
us to continue to outperform the sector and leave us well positioned to
mitigate these increases.
We remain focused on strengthening our balance sheet, which will enhance the
resilience of the group and deliver further value to shareholders, principally
through a transfer to equity. The Board do not feel that it will be efficient,
particularly with regard to break costs and new debt issue costs, to consider
a reset of the capital allocation strategy of the Group within the near term.
Over time, and as the securitisation matures, the Board will however continue
to monitor the position and shareholder returns will be considered alongside
investment opportunities.
BUSINESS REVIEW
Total sales across the period were £2,711m reflecting 3.9% growth on FY 2024.
Like-for-like sales(a) increased by 4.3% with strong performances through the
brand portfolio. Adjusted operating profit(a) of £330m was 5.8% growth on
last year (FY 2024 £312m) and a 0.2ppt increase in adjusted operating margin
to 12.2% (FY 2024 12.0%).
We made a good start to the year with like-for-like sales(a) growth of 4.0%
over the first seven weeks. Performance over the important three-week festive
period was particularly strong with like-for-like sales(a) growth of 10.4%.
Across the first quarter as a whole, like-for-like sales(a) remained well
ahead of the market(a), growing by 3.9% despite the notable adverse, albeit
temporary, impact of very cold and stormy weather over the last couple of
weeks.
Sales remained resilient through the second quarter aided by good weather in
late March, and with a particularly strong performance on Mother's Day.
Across the quarter, we recorded like-for-like sales(a) growth of 4.7%.
Third quarter growth remained strong and benefitted from the movement of
Easter into the second half, with like-for-like sales(a) growth of 5.0%.
Fourth quarter like-for-like sales(a) growth of 3.2% reflected robust
performances in mid-market pub and pub restaurants balanced against slightly
weaker sales in London within the M25 and in more premium businesses.
We have continued to consistently outperform the market(b), as represented by
the CGA Business Tracker, by c.3% over the financial year. Across the market
segments reported on by CGA Business Tracker, Pubs and Pub Restaurants have
seen the highest sales growth across the year, benefitting from periods of
warmer weather. The Restaurant segment has delivered broadly flat sales,
which we have consistently outperformed. Bars have reported sales decline,
with the late-night market being particularly challenged. This is the segment
that we have least exposure to, but again we have outperformed significantly,
with our offers appealing across a range of occasions with less exposure to
late-night trade.
Cost inflation headwinds over the financial year were in line with guidance at
£100m, driven primarily by increased labour costs (including increased
national insurance contributions which impacted the second half) and against a
backdrop of stabilisation of overall energy costs. Strong and resilient sales
growth, combined with effective delivery of our Ignite and capital programmes,
have driven an increase in both profitability and margins.
The macro pressures impacting the sector have resulted in a decline in the
number of licensed outlets of 0.5% in the year to June 2025, after a period of
relative stability during 2024. Leased businesses were most affected, with
net closures of 3.3%. Independents reported a net reduction of 0.1% with net
closures in food-led outlets offsetting growth in drink-led outlets. Managed
operators marginally increased outlet numbers by 0.7% despite a reduction in
food-led outlets. The reduction of outlet numbers suggests that operators in
certain segments of the market are no longer able to withstand the cost
pressures impacting the sector.
OUR STRATEGIC PRIORITIES
Our strategy, based on three key pillars, has provided the foundation for our
ongoing performance. We focus on maximising the value generated from our 83%
freehold and long leasehold estate, utilising the diversity of our brand
portfolio to grow market share with appeal across a broad range of consumer
occasions, demographics and locations. Our range of offers is a particular
strength during times of uncertainty, with familiar brands to suit a wide
range of occasions, providing guests with the opportunity to adapt their
drinking and eating out choices to meet their needs.
Our Ignite improvement programme of work remains a key focus for the business.
The programme enables our organisation to be agile in response to the evolving
external environment, facilitating change whilst maximising the power of our
scale. We have around 40 initiatives underway across a range of areas, all
focused on driving sales and delivering cost efficiencies. Sales focused
initiatives deliver enhanced guest experiences in a variety of ways and
continue to reap rewards, reflected in sustained like-for-like sales(a) growth
as well as continued market outperformance on guest review scores, which
averaged 4.6 out of 5.0 over the financial year. During the year we have
expanded our guest feedback surveys to include reviews of dishes, enabling us
to use additional data driven insights to evolve our menus to better satisfy
guest needs.
Enhancing productivity and efficiency to help mitigate inflationary costs
remains an important focus. We have a number of initiatives in place
designed to improve efficiency, including optimisation of our labour
scheduling system which assists General Managers in achieving an effective
balance of team to maximise sales across day parts, as well as our
auto-ordering system which helps to reduce instances of stock outs and to
minimise waste.
A number of initiatives deliver commercial savings whilst also contributing to
our sustainability objectives. We have continued the roll out of remote
control in-site energy systems which have delivered energy consumption savings
across our estate. Remote control of heating, for example, provides a
significant opportunity to reduce consumption whilst also relieving our
managers of one of their many daily tasks, allowing them to focus on guests.
In addition, during the year we realised an opportunity in packaging,
following a market transition to exchange glass bottles for cans in certain
soft drinks, delivering cost savings and environmental benefits through lower
emission packaging.
Our capital programme continues to deliver significant value through improving
the competitive position of our pubs and restaurants within their local
markets. We are committed to prioritising investment in our estate and this
year we expanded the programme, investing £181m and completing 216 investment
projects comprising 199 remodels, 13 conversions and 4 acquisitions. We are
generating very strong returns, currently c.35% on remodels, justifying an
increasing allocation of capital to this area as we look to re-establish an
average 7-year investment cycle.
PEOPLE
Our people bring our brands to life and are critical in the success of the
business. We are delighted that engagement scores have continued to improve
over the period and believe this is representative of the commitment of our
teams to deliver the change needed to navigate the challenging operating
environment and ultimately to drive the future success of the business.
Pleasingly, employee turnover has also continued to improve reaching record
levels of 55% (FY 2024 64%) supported by improved internal succession rates,
reflecting the strength of our training and progression opportunities. For a
number of years, we have been able to evidence the strong correlation between
employee engagement scores, guest satisfaction and sales performance and this
has proven to be the case once again over the course of FY 2025.
Our sustained progress across key people metrics, despite a persistently
challenging recruitment environment, underscores the effectiveness of our
talent strategy - successfully attracting high-calibre individuals, enhancing
capability through structured development programmes, and supporting long-term
retention via clear and compelling career progression pathways.
SUSTAINABILITY
We are committed to reducing the environmental impact of our business and are
pleased with the progress we have made against our challenging targets. We
have committed to:
- Net Zero emissions by 2040, including scope 1, 2 and 3
Progress: We have reduced our total footprint by 16% from our 2019 baseline
year, comprising a reduction in scope 1 and 2 emissions of 22% driven by
energy consumption reduction and reduced reliance on gas as an energy source,
and scope 3 reduction of 15% reflecting progress made in partnership with our
suppliers to reduce the impact of our supply chain.
- Zero operational waste to landfill by 2030
Progress: We now divert 99% of waste from landfill and are confident of
achieving our target ahead of 2030. In addition, we have increased recycling
rates to 60% with enhanced segregation and a focus on engagement and behaviour
change in sites.
- 50% reduction in food waste by 2030
Progress: To date we have successfully reduced our food waste by 23% from our
2019 baseline, with progress both in sites and in the supply chain. We are
focused on operational practices to reduce waste and have effective
partnerships in place with Fareshare and Too Good To Go to redistribute
unavoidable surplus food.
We remain focused on working towards our sustainability goals, with numerous
initiatives underway to support these ambitions and we were delighted to again
receive the award for the Most Sustainable Pub Company at this year's Publican
Awards. We have continued to invest in sustainability capital, we now have 244
sites with solar panels, and significant further opportunity to grow our
production of renewable energy. We have made good progress in the
electrification of sites to reduce our reliance on gas as an energy source,
having removed gas fully from 24 sites (FY 2024 5 sites) and electrified 100
kitchens (FY 2024 60). In addition, we are investing in technology which
allows us to remotely control high energy consumption equipment across the
estate, opening up the opportunity for energy consumption savings without
requiring intervention from our teams.
Our teams are vital to the delivery of progress. We provide support for
these types of initiatives through our dedicated network of sustainability
ambassadors, as well as centrally developed online training. We know that our
people are passionate about improving the environmental impact of our business
and are pleased to deliver continued progress in this area further enhancing
our employer proposition.
FINANCIAL REVIEW
On a statutory basis, profit before tax for the financial year was £238m (FY
2024 £199m), on sales of £2,711m (FY 2024 £2,610m).
The Group Income Statement discloses adjusted profit and earnings per share
information that excludes separately disclosed items, determined by virtue of
their size or nature, to allow a more effective comparison of the Group's
trading performance from one period to the next.
Statutory Adjusted(a)
FY 2025 FY 2024 FY 2025 FY 2024
£m £m £m £m
Revenue 2,711 2,610 2,711 2,610
Operating profit 322 300 330 312
Profit before tax 238 199 246 211
Earnings per share 29.7p 25.0p 30.9p 26.4p
Operating margin 11.9% 11.5% 12.2% 12.0%
At the end of the period, the total estate comprised 1,718 sites in the UK and
Germany of which 1,631 are directly managed.
Revenue
Total revenue of £2,711m (FY 2024 £2,610m) reflects a strong period of
trading driven by sustained like-for-like sales(a) growth.
Like-for-like sales(a) in the first half increased by 4.3%, comprising an
increase in like-for-like food sales(a) of 3.8% and of like-for-like drink
sales(a) of 4.3% driven by strengthening spend per head. Over the second half
like-for-like sales(a) grew by 4.2% and remained consistently ahead of the
market(b). Volumes of both food and drink were broadly flat across the year.
Other trading revenue lines (primarily from accommodation and machines) grew
at a slightly greater rate than food and drink in the year.
The current underlying rate of growth of like-for-like sales(a), as measured
over the first 8 weeks of the new financial period, is 3.8%.
Like-for-like sales(a):
Weeks 1-15 Weeks 16-28 Weeks 29-42 Weeks 43-52 Weeks 1-52
Q1 Q2 Q3 Q4 YTD
Food 4.0% 3.6% 4.9% 3.4% 4.0%
Drink 3.6% 5.1% 4.8% 2.3% 4.0%
Total 3.9% 4.7% 5.0% 3.2% 4.3%
Total sales grew by 3.9% against last financial year.
Separately disclosed items
Separately disclosed items are identified due to their nature or materiality
to help the reader form a view of overall and adjusted trading.
Revaluation and impairment assessment has resulted in a £94m increase in the
value of property, plant and equipment (as set out in Note 6 to the
consolidated financial statements). Within this a net £6m increase is
separately disclosed in the income statement comprising an £11m increase
arising from the revaluation of freehold and long leasehold sites, less a £5m
impairment of short leasehold and unlicensed properties. Further impairment of
£9m is separately disclosed relating to right-of-use assets and goodwill.
Other separately disclosed items include £3m charge in relation to the
amendment of past service costs of defined benefit obligations, an increase of
£3m (on remeasurement) of the contingent consideration relating to the
acquisition of Pesto and net profit arising on property disposals of £1m.
Refer to Note 3 to the consolidated financial statements for comparative
information.
Operating profit and margins(a)
Adjusted operating profit(a) was £330m (FY 2024 £312m), an increase of 5.8%
on a 52-week basis. Adjusted operating margin of 12.2% was 0.2ppts higher
than last year with strong like-for-like sales(a) growth and operating
efficiencies offsetting cost headwinds. Statutory operating profit was £322m
(FY 2024 £300m) with statutory operating profit margin of 11.9% (FY 2024
11.5%).
The aggregate cost headwind for the financial year of £100m represented c.5%
of our cost base of c.£2.0 billion, driven primarily by labour costs
including increases to the statutory National Living Wage and a second half
increase in employer national insurance contributions. Looking forward to FY
2026, we anticipate an increase in the level of cost inflation, to c.£130m,
representing slightly less than 6% of our cost base before mitigation. The
increase is driven by the annualisation of labour cost increases, plus further
increases in statutory thresholds and high increases in food costs, notably
meat. This includes our preliminary assessment of the impact of the
Chancellor's recent Autumn Budget, pending clarification of further detail.
Interest
Net finance costs of £91m (FY 2024 £99m) for the financial year were £8m
lower than the same period last year. The net pensions finance credit of £7m
reflects the recognition of the net surplus funding position (FY 2024 charge
of £2m).
Earnings per share
Basic earnings per share, after the separately disclosed items described
above, were 29.7p (FY 2024 earnings 25.0p), with adjusted earnings per
share(a) of 30.9p (FY 2024 26.4p).
The basic weighted average number of shares in the period was 595m and the
total number of shares issued at the balance sheet date was 599m.
Cash flow
FY 2025 FY 2024
£m £m
EBITDA before movements in the valuation of the property portfolio 460 444
Non-cash share-based payment and pension costs and other 15 10
Utilisation of pension surplus for DC contributions 9 -
Operating cash flow before movements in working capital and additional pension 484 454
contributions
Working capital movement (15) 15
Pension escrow return 12 35
Pension payments (1) (1)
Cash flow from operations 480 503
Capital expenditure (181) (154)
Acquisition of Pesto Restaurants Limited - (2)
Net finance lease principal payments (39) (40)
Interest on lease liabilities (14) (17)
Net interest paid (73) (82)
Tax (24) (18)
Purchase of own shares (5) (7)
Other 2 2
Net cash flow before bond amortisation 146 185
Mandatory bond amortisation (130) (123)
Net cash flow 16 62
EBITDA, before movements in the valuation of the property portfolio, increased
largely as a result of the improved trading performance to £460m. Net cash
inflow for the period before bond amortisation of £146m (FY 2024 £185m)
benefitted from a final pension escrow return of £12m in addition to £9m
utilisation of pension surplus towards ongoing DC contributions plus a further
£3m utilisation against death in service benefits and AVCs in respect of
prior year bonus payments. Working capital flows reversed to an outflow of
£15m, on timing differences, and capital expenditure increased to £181m with
acceleration of the investment programme based on strong returns.
After all outgoings, including mandatory bond amortisation of £130m
(including the net impact of currency swaps), cash inflow was £16m (FY 2024
£62m).
Capital expenditure
Capital expenditure of £181m (FY 2024 £154m, including £2m intangible
assets) comprises £169m from the purchase of property, plant and equipment
and £12m in relation to the purchase of intangible assets.
FY 2025 FY 2024
£m # £m #
Maintenance and infrastructure ( ) 65 58
Remodels - refurbishment 91 193 69 170
Remodels - expansionary 2 6 2 8
Conversions 14 13 10 11
Acquisitions - freehold 5 2 12 4
Acquisitions - leasehold 4 2 3 2
Total return generating capital expenditure 116 216 96 195
Total capital expenditure 181 154
Maintenance and infrastructure spend included investment of £10m towards our
sustainability ambitions, such as solar panels and remote equipment control
technology. Digital and technology investment increased to £16m (FY 2024
£6m) due to upgrade and replacement of in-house devices and network and
hosting equipment.
During the period we have made good progress on increasing the number of
completed investment projects, and we remain committed to resumption of an
average seven-year refurbishment cycle across our estate, justified by the
strong returns we are generating in this area of c.35% on remodels. To that
end we expect capital expenditure to increase further in FY 2026, to c.£210m,
with additional potential for new site acquisitions.
Pensions
In the prior period the Trustees of the Mitchells & Butlers Executive
Pension Plan (MABEPP) completed a full scheme buy-out of the liabilities of
the plan. Subsequent to that, and in the current period, the scheme has been
wound up with all escrow monies repaid and a surplus cash balance of £3m
transferring to the Mitchells & Butlers Pension Plan (MABPP).
The Trustees of MABPP have resolved that any surplus arising in that plan can
be used to pay for the employer contributions to the defined contribution
section of MABPP. During the period, the MABPP surplus has funded the
settlement of £12m of the Company's employer contributions, AVC's in respect
of prior year bonus payments and death in service benefits.
One further scheme remains. This is closed and unfunded and has estimated
liabilities of £22m, before tax.
Net debt and facilities
Net debt(a) at the period end reduced to £1,277m, comprised of £843m
non-lease liabilities and lease liabilities of £434m (FY 2024 £1,436m
comprised of £989m non-lease liabilities and lease liabilities of £447m).
This represents a multiple of 2.7 times EBITDA over the last year including
lease liabilities (1.8 times excluding these liabilities).
Further details of existing debt arrangements and an analysis of net debt can
be found in Note 9 to the consolidated financial statements and at
https://www.mbplc.com/infocentre/debtinformation/
(https://www.mbplc.com/infocentre/debtinformation/) .
Going Concern
After considering forecasts, sensitivities and mitigating actions available to
management and having regard to risks and uncertainties, the Directors have a
reasonable expectation that the Group has adequate resources to continue to
operate within its borrowing facilities and covenants for a period of at least
12 months from the date of signing the financial statements. Accordingly, the
financial statements have been prepared on the going concern basis. Full
details are included in Note 1 to the consolidated financial statements.
Director's responsibility statement
We confirm that to the best of our knowledge:
- the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the company and
the undertakings included in the consolidation taken as a whole; and
- the strategic report includes a fair review of the development and
performance of the business and the position of the issuer and the
undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
This responsibility statement was approved by the Board of Directors on 27
November 2025 and is signed on its behalf by:
Tim Jones
Chief Financial Officer
27 November 2025
Definitions
a - The Directors use a number of alternative performance measures (APMs) that
are considered critical to aid the understanding of the Group's performance.
Key measures are explained later in this announcement.
b - As measured by the CGA Business Tracker.
Group income statement
For the 52 weeks ended 27 September 2025
2025 2024
52 weeks 52 weeks
Before Before
separately disclosed Separately disclosed separately disclosed Separately disclosed
items items(a) Total items items(a) Total
Notes £m £m £m £m £m £m
Revenue 2 2,711 - 2,711 2,610 - 2,610
Operating costs before depreciation, amortisation and movements in the (2,246) (6) (2,252) (2,168) - (2,168)
valuation of the property portfolio
Net profit arising on property disposals 3 - 1 - 2
1 2
EBITDA(b) before movements in the valuation of the property portfolio 465 (5) 460 442 2 444
Depreciation, amortisation and movements in the valuation of the property 3 (135) (3) (138) (130) (14) (144)
portfolio
Operating profit/(loss) 330 (8) 322 312 (12) 300
Finance costs 10 (100) - (100) (109) - (109)
Finance income 10 9 - 9 10 - 10
Net pensions finance income/(charge) 10, 11 7 - 7 (2) - (2)
Profit/(loss) before tax 246 (8) 238 211 (12) 199
Tax (charge)/credit 4 (62) 1 (61) (54) 4 (50)
Profit/(loss) for the period 184 (7) 157 (8) 149
177
Earnings per ordinary share
Basic 5 30.9p 29.7p 26.4p 25.0p
Diluted 5 30.6p 29.5p 26.2p 24.8p
a. Separately disclosed items are explained and analysed in note 3.
b. Earnings before interest, tax, depreciation, amortisation and movements in the
valuation of the property portfolio. The Directors use a number of
alternative performance measures (APMs) that are considered critical to aid
the understanding of the Group's performance. Key measures are explained
later in this announcement.
All results relate to continuing operations.
Group statement of comprehensive income
For the 52 weeks ended 27 September 2025
2025 2024
52 weeks 52 weeks
Notes £m £m
Profit for the period 177 149
Items that will not be reclassified subsequently to profit or loss:
Unrealised gain on revaluation of the property portfolio 6 88 254
Remeasurement of pension liability 11 (18) 166
Tax relating to items not reclassified 4 (13) (116)
57 304
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges:
- Gain/(losses) arising during the period 10 (34)
- Reclassification adjustments for items included in profit or loss 5 11
Tax relating to items that may be reclassified 4 (4) 6
11 (17)
Other comprehensive income after tax 68 287
Total comprehensive income for the period 245 436
Group balance sheet
27 September 2025 2025 2024
Notes £m £m
Assets
Goodwill and other intangible assets 28 20
Property, plant and equipment 6, 8 4,591 4,419
Right-of-use assets 7, 8 291 307
Finance lease receivables 10 11
Pension surplus 11 132 164
Deferred tax asset 2 3
Derivative financial instruments 15 19
Total non-current assets 5,069 4,943
Inventories 26 27
Trade and other receivables 79 98
Current tax asset 2 -
Finance lease receivables 1 1
Cash and cash equivalents 9 216 176
Total current assets 324 302
Total assets 5,393 5,245
Liabilities
Pension liabilities 11 (1) (1)
Trade and other payables (473) (482)
Current tax liabilities - (1)
Borrowings 9 (174) (143)
Lease liabilities 7 (42) (33)
Derivative financial instruments (4) (2)
(662)
(694)
Total current liabilities
Pension liabilities 11 (21) (24)
Other payables 13 - (8)
Borrowings 9 (900) (1,041)
Lease liabilities 7 (392) (414)
Derivative financial instruments (11) (27)
Deferred tax liabilities (546) (491)
Provisions (13) (12)
Total non-current liabilities (1,883) (2,017)
Total liabilities (2,577) (2,679)
Net assets 2,816 2,566
Equity
Called up share capital 12 51 51
Share premium account 12 358 357
Capital redemption reserve 3 3
Revaluation reserve 1,209 1,143
Own shares held (10) (9)
Hedging reserve (10) (21)
Translation reserve 14 14
Retained earnings 1,201 1,028
Total equity 2,816 2,566
Group statement of changes in equity
For the 52 weeks ended 27 September 2025
Called Share Capital Own
up share premium redemption Revaluation shares Hedging Translation Retained Total
capital account reserve reserve held reserve reserve earnings equity
£m £m £m £m £m £m £m £m £m
At 30 September 2023 51 357 3 951 (5) (4) 14 763 2,130
Profit for the period - - - - - - - 149 149
Other comprehensive income/(expense) - - - 192 - (17) - 112 287
Total comprehensive income)/(expense) - - - 192 - (17) - 261 436
Purchase of shares - - - - (7) - - - (7)
Release of shares - - - - 3 - - (3) -
Credit in respect of share-based payments - - - - - - - 6 6
Tax on share based payments - - - - - - - 1 1
At 28 September 2024 51 357 3 1,143 (9) (21) 14 1,028
2,566
Profit for the period - - - - - - - 177 177
Other comprehensive income/(expense) - - - 66 - 11 - (9) 68
Total comprehensive income - - - 66 - 11 - 168 245
Share capital issued - 1 - - - - - - 1
Purchase of shares - - - - (5) - - - (5)
Release of shares - - - - 4 - - (4) -
Credit in respect of share-based payments - - - - - - - 9 9
At 27 September 2025 51 358 3 1,209 (10) (10) 14 1,201
2,816
Group cash flow statement
For the 52 weeks ended 27 September 2025
2025 2024
52 weeks 52 weeks
Notes £m £m
Cash flow from operations
Operating profit 322 300
Add back/(deduct):
Movement in the valuation of the property portfolio 3 3 14
Net profit arising on property disposals 3 (1) (2)
Depreciation of property, plant and equipment 6 96 92
Amortisation of intangibles 3 4
Depreciation of right-of-use assets 7 36 34
Cost charged in respect of share-based payments 9 7
Administrative pension costs 11 4 5
Amendment of past service cost in relation to the defined benefit obligation 11 3 -
Utilisation of pension surplus for DC contributions 11 9 -
Operating cash flow before movements in working capital 484 454
and additional pension contributions
Decrease/(increase) in inventories 1 (1)
Decrease in trade and other receivables 16 44
(Decrease)/increase in trade and other payables (17) 8
Decrease in provisions (3) (1)
Pension contributions 11 (1) (1)
Cash flow from operations 480 503
Interest payments(a) (82) (96)
Interest (payments)/receipts on interest rate swaps(a) (1) 3
Interest receipts on cross currency swap(a) 4 7
Interest payments on cross currency swap(a) (3) (5)
Other interest paid - lease liabilities 9 (14) (17)
Borrowing facility fees paid (1) -
Interest received 9 9
Tax paid (24) (18)
Net cash from operating activities 368 386
Investing activities
Acquisition of Pesto Restaurants Limited - (2)
Purchases of property, plant and equipment (169) (152)
Purchases of intangible assets (12) (2)
Proceeds from sale of property, plant and equipment 1 1
Finance lease principal repayments received 1 1
Net cash used in investing activities (179) (154)
Financing activities
Issue of ordinary share capital 1 -
Purchase of own shares (5) (7)
Repayment of principal in respect of securitised debt(b) 9 (134) (128)
Principal receipts on currency swap(b) 9 21 21
Principal payments on currency swap(b) 9 (17) (16)
Cash payments for the principal portion of lease liabilities 9 (39) (41)
Repayment of other borrowings - (1)
Short-term financing of employee advances - 2
Net cash used in financing activities (173) (170)
Net increase in cash and cash equivalents 16 62
Cash and cash equivalents at the beginning of the period 9 164 103
Foreign exchange movements 1 (1)
Cash and cash equivalents at the end of the period 9 181 164
a. Interest paid is split to show gross payments on the interest
rate and cross currency swaps.
b. Principal repayments on securitised debt are split to show
repayments relating to the cross currency swap.
Notes to the consolidated financial statements
1. Preparation of preliminary consolidated financial statements
General information
Mitchells & Butlers plc, along with its subsidiaries, (together 'the
Group') is required to prepare its consolidated financial statements in
accordance with UK-adopted International Financial Reporting Standards (IFRSs)
as and in accordance with the Companies Act 2006. While the financial
information included in this release is based on the Group's consolidated
financial statements and has been prepared in accordance with the recognition
and measurement criteria of UK-adopted International Financial Reporting
Standards (IFRSs), this announcement does not itself contain sufficient
information to comply with IFRSs.
The preliminary financial statements include the results of Mitchells &
Butlers plc and all its subsidiaries for the 52 week period ended 27 September
2025. The comparative period is for the 52 week period ended 28 September
2024. The respective balance sheets have been drawn up as at 27 September 2025
and 28 September 2024.
The consolidated financial statements have been prepared on the historical
cost basis as modified by the revaluation of freehold and long leasehold
properties, pension obligations and financial instruments.
The Group's accounting policies have been applied consistently.
Going concern
The Directors have adopted the going concern basis in preparing these
financial statements after assessing the impact of identified principal risks
and their possible adverse impact on financial performance, specifically
revenue and cash flows throughout the going concern period, being 12 months
from the date of signing of these financial statements.
The Group's primary source of borrowings is through nine tranches of fully
amortising loan notes with a gross debt value of a little over £1bn as at the
end of the year. These are secured against the majority of the Group's
property and future income streams. The principal repayment period varies by
class of note with maturity dates ranging from 2028 to 2036. Within this
financing structure there are two main covenants: the level of net worth
(being the net asset value of the securitisation group), and FCF to DSCR. As
at 27 September 2025 there was substantial headroom on the net worth covenant.
FCF to DSCR represents the multiple of Free cash Flow (being EBITDA less tax
and required capital maintenance expenditure) generated by sites within the
structure to the cost of debt service (being the repayment of principal, net
interest charges and associated fees). This is tested quarterly on both a
trailing two quarter and four quarter basis.
The Group also has a committed unsecured credit facility of £150m, with a
negative pledge in favour of participating banks and an expiry date in July
2028. At the balance sheet date there were no drawings under this
facility. This facility has two main financial covenants, based on the
performance of the unsecured estate: the ratio of EBITDAR to rent plus
interest (at a minimum of 1.25 times) and Net debt to EBITDA (to be no more
than 3.0 times), both tested on a half-yearly basis (for the prior four
quarters).
In the year ahead the main uncertainties facing the Group are considered to be
the maintenance of sales growth in the face of pressure on consumer spending
power, and the rate of cost inflation. The outlook for these remains
uncertain, depending on a number of factors including consumer confidence,
global macroeconomic and political developments, supply chain disruptions and
Government policies.
The Directors have reviewed the financing arrangements against a base case
forward trading forecast. This forecast assumes continued mid single digit
growth in sales across the year. Cost inflation is assumed to increase to a
slightly higher level than the previous financial year driven primarily by
increased food input costs (notably red meat) and labour costs (which include
annualisation of increased levels of employers national insurance
contributions from April 2025). As a result an overall net increase of
approximately 6% across the cost base of the business of approximately £2.2bn
is expected. Under this base case the Group is able to stay within
securitisation and committed facility financial covenants and maintains
sufficient liquidity.
1. Preparation of preliminary consolidated financial statements
Going concern (continued)
The Directors have also considered a severe but plausible downside scenario
covering adverse movements against the base forward forecast in both sales and
cost inflation, but no major disruption to supply chain or systems. Some
mitigation activity is taken including lower capital expenditure on site
remodel activity and a flex down of labour and site costs in line with reduced
sales. In this scenario sales are assumed to remain marginally in growth, but
at 2.5% below the base case forecast. Unmitigated cost inflation is also
higher in the areas of food, labour, duty and energy. In this downside
scenario the Group is again able to stay within securitisation and committed
facility financial covenants, whilst maintaining sufficient liquidity.
Furthermore, the Directors have considered a reverse stress test analysis, to
review the headroom below which trading could fall beyond the downside
scenario before the earlier of financial covenants becoming breached, or
available liquidity becoming insufficient. This analysis indicates that on
consistent cost assumptions, sales would be able to fall by approximately 4%
beyond the downside case throughout the assessment period before financial
covenants were breached, when tested at Q4 FY 2026 being the last full testing
period within the 12 month going concern assessment period. In this scenario
the Group would still have sufficient available liquidity.
After due consideration of these factors, the Directors therefore believe that
it remains appropriate to prepare the financial statements on a going concern
basis.
Foreign currencies
The results of overseas operations have been translated into sterling at the
weighted average euro rate of exchange for the period of £1 = €1.17 (2024
£1 = €1.15), where this is a reasonable approximation to the rate at the
dates of the transactions. Euro and US dollar denominated assets and
liabilities have been translated at the relevant rate of exchange at the
balance sheet date of £1 = €1.14 (2024 £1 = €1.20) and £1 = $1.34 (2024
£1 = $1.34) respectively.
New and amended IFRS Standards that are effective for the current period
The International Accounting Standards Board (IASB) and International
Financial Reporting Interpretations Committee (IFRIC) have issued the
following standards and interpretations which have been adopted by the Group
in these consolidated financial statements for the first time with no material
impact.
Accounting standard Effective date
Amendments to IFRS 16 Leases (Lease Liability in a Sale and Leaseback) 1 January 2024
Amendments to IAS 1 Presentation of Financial Statements (Classification of 1 January 2024
liabilities as Current or Non-Current and Non-current Liabilities with
Covenants)
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial 1 January 2024
Instruments (Disclosures - Supplier Finance Arrangements)
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the consolidated financial statements requires management
to make judgements, estimates and assumptions in the application of accounting
policies that affect reported amounts of assets, liabilities, income and
expense.
Estimates and judgements are periodically evaluated and are based on
historical experience and other factors including expectations of future
events that are believed to be reasonable under the circumstances. Actual
results may differ from these estimates.
Judgements and estimates for the period remain largely unchanged from the
prior period.
1. Preparation of preliminary consolidated financial statements (continued)
Critical accounting judgements and key sources of estimation uncertainty
(continued)
Significant accounting estimates:
The significant accounting estimate with a significant risk of a material
change to the carrying value of assets and liabilities within the next year in
terms of IAS 1 Presentation of Financial Statements, is:
· Fair value of freehold and long leasehold properties - see note 6
Other areas of judgement are described in each section listed below:
· Determination of items that are separately disclosed - see note 3
· Impairment review of short leasehold properties and right-of-use
assets - see note 8
· Recognition of pension surplus - see note 11
Other sources of estimation uncertainty are described in:
· Impairment review of short leasehold properties and right-of-use
assets - see note 8
2. Segmental analysis
Operating segments
IFRS 8 Operating Segments requires operating segments to be based on the
Group's internal reporting to its Chief Operating Decision Maker (CODM). The
CODM is regarded as the Chief Executive together with other Board members. The
Group trades in one business segment (that of operating pubs and restaurants)
and the Group's brands meet the aggregation criteria set out in Paragraph 12
of IFRS 8. Economic indicators assessed in determining that the aggregated
operating segments share similar economic characteristics include: expected
future financial performance; operating and competitive risks; and return on
invested capital. As such, the Group reports the business as one reportable
business segment.
The CODM uses EBITDA and operating profit before interest and separately
disclosed items as the key measures of the Group's results on an aggregated
basis.
Geographical segments
Substantially all of the Group's business is conducted in the United
Kingdom. In presenting information by geographical segment, segment revenue
and non-current assets are based on the geographical location of customers and
assets.
Geographical segments
UK Germany Total
2025 2024 2025 2024 2025 2024
52 weeks 52 weeks 52 weeks 52 weeks 52 weeks 52 weeks
£m £m £m £m £m £m
Revenue - sales to third parties 2,598 2,493 113 117 2,711 2,610
Segment non-current assets(a) 4,868 4,706 56 51 4,924 4,757
a. Includes balances relating to intangibles, property, plant and equipment,
right-of-use assets and finance lease receivables.
3. Separately disclosed items
The items identified in the current period are as follows:
2025 2024
52 weeks 52 weeks
Notes £m £m
Separately disclosed items
Remeasurement of contingent consideration a (3) -
Amendment of past service cost in relation to the defined benefit obligation b (3) -
Total separately disclosed items recognised within operating costs (6) -
Net profit arising on property disposals 1 2
Movement in the valuation of the property portfolio:
- Impairment reversal arising from the revaluation of freehold and long c 11 4
leasehold properties
- Net impairment of short leasehold and unlicensed properties d (5) -
- Net impairment of right-of-use assets e (8) (17)
- Net impairment of computer software f - (1)
- Net impairment of goodwill g (1) -
Net movement in the valuation of the property portfolio (3) (14)
Total separately disclosed items before tax (8) (12)
Tax credit relating to above items 1 4
Total separately disclosed items after tax (7) (8)
a. Loss on remeasurement of the contingent consideration relating to the
acquisition of Pesto Restaurants Limited.
b. In FY 2018 the High Court ruled that pensions provided to members who had
contracted-out of their scheme must be recalculated to ensure payments reflect
the equalisation of state pension ages in the 1990s. An initial estimate for
this liability of £19m was charged in FY 2019, and disclosed
separately. Following the buy-in of the Mitchells & Butlers Main Pension
Plan during the 53 weeks ending 30 September 2023 work is ongoing to fully
quantify the liability, which is now anticipated to cost an additional £3m.
c. The impairment arising from the Group's revaluation of its freehold and long
leasehold pub estate comprises an impairment credit as the result of a
revaluation surplus that reverses past impairments net of an impairment
charge, where the carrying values of the properties exceed their recoverable
amount. See note 6 for further details.
d. Impairment of short leasehold and unlicensed properties where their carrying
values exceed their recoverable amounts, net of reversals of past impairments.
See note 8 for further details.
e. Impairment of right-of-use assets where their carrying values exceed their
recoverable amounts, net of reversals of past impairments. See note 8 for
further details.
f. Impairment of computer software where the carrying value exceeds the
recoverable amount. See note 8 for further details.
g. Impairment of goodwill where the carrying value exceeds the recoverable
amount. See note 8 for further details.
4. Taxation
Taxation - Group income statement
2025 2024
52 weeks 52 weeks
£m £m
Current tax:
- Corporation tax (22) (16)
Total current tax charge (22) (16)
Deferred tax:
- Origination and reversal of temporary differences (40) (33)
- Amounts over/(under)-provided in prior periods 1 (1)
Total deferred tax charge (39) (34)
Total tax charge in the Group income statement (61) (50)
Further analysed as tax relating to:
Profit before separately disclosed items (62) (54)
Separately disclosed items 1 4
Total tax charge in the Group income statement (61) (50)
The standard rate of corporation tax applied to the reported profit is 25.0%
(2024 25.0%).
The tax charge (2024 charge) in the Group income statement for the period is
higher than (2024 in line with) the standard rate of corporation tax in the
UK. The differences are reconciled below:
2025 2024
52 weeks 52 weeks
£m £m
Profit before tax 238 199
Taxation charge at the UK standard rate of corporation tax of 25.0% (2024 (59) (50)
25.0%)
Expenses not deductible (4) (3)
Permanent benefits 1 4
Adjustments in respect of prior periods 1 (1)
Total tax charge in the Group income statement (61) (50)
Taxation for other jurisdictions is calculated at the rates prevailing in
those jurisdictions.
4. Taxation (continued)
2025 2024
52 weeks 52 weeks
£m £m
Deferred tax in the Group income statement:
Accelerated capital allowances (12) (14)
Tax losses - UK (22) (15)
Tax losses - Interest restriction (5) (7)
Retirement benefit obligations 3 1
Share-based payments - 1
Unrealised gains on revaluations (3) -
Depreciated non-qualifying assets 1 -
Right of use assets (1) -
Total deferred tax charge in the Group income statement (39) (34)
Taxation - other comprehensive income
2025 2024
52 weeks 52 weeks
£m £m
Deferred tax:
Items that will not be reclassified subsequently to profit or loss:
- Unrealised gains due to revaluations - revaluation reserve (22) (62)
- Unrealised gains due to revaluations - retained earnings 5 (12)
- Remeasurement of pension liability 4 (42)
(13) (116)
Items that may be reclassified subsequently to profit or loss:
- Cash flow hedges (4) 6
Total tax charge recognised in other comprehensive income (17) (110)
2025 2024
52 weeks 52 weeks
£m £m
Tax relating to items recognised directly in equity
Deferred tax:
- Tax credit related to share-based payments - 1
Factors which may affect future tax charges
The Group is within the scope of the OECD Pillar Two (Global Minimum Tax)
model rules. The legislation has been enacted in the UK and Germany, being
the jurisdictions in which the Group operates. The rules are effective for
the Group from the accounting period commencing 29 September 2024. The Group
has assessed that no material top-up taxes will arise.
For the 52 week period ended 27 September 2025, the Group has applied the IAS
12 mandatory exception to recognising and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes.
5. Earnings/(loss) per share
Basic earnings per share (EPS) has been calculated by dividing the profit for
the period by the weighted average number of ordinary shares in issue during
the period, excluding own shares held by employee share trusts.
For diluted earnings per share, the weighted average number of ordinary shares
is adjusted to assume conversion of all dilutive potential ordinary shares.
Adjusted earnings per ordinary share amounts are presented before separately
disclosed items (see note 3) in order to allow an understanding of the
adjusted trading performance of the Group.
The profits used for the earnings per share calculations are as follows:
2025 2024
52 weeks 52 weeks
£m £m
Profit for the period 177 149
Separately disclosed items, net of tax 7 8
Adjusted profit for the period(a) 184 157
The number of shares used for the earnings per share calculations are as
follows:
2025 2024
52 weeks 52 weeks
million million
Basic weighted average number of ordinary shares 595 595
Effect of dilutive potential ordinary shares:
- Contingently issuable shares 5 5
- Other share options 1 -
Diluted weighted average number of shares 601 600
2025 2024
52 weeks 52 weeks
pence pence
Basic earnings per share
Basic earnings per share 29.7p 25.0p
Separately disclosed items net of tax per share 1.2p 1.4p
Adjusted basic earnings per share(a) 30.9p 26.4p
Diluted earnings per share
Diluted earnings per share 29.5p 24.8 p
Adjusted diluted earnings per share(a) 30.6p 26.2 p
a. Adjusted profit and adjusted EPS are alternative performance measures
(APMs) and are considered critical to aid understanding of the Group's
performance. These measures are explained later in this announcement.
At 27 September 2025, 2,949,881 (2024 1,486,595) other share options were
outstanding that could potentially dilute basic EPS in the future but were not
included in the calculation of diluted EPS as they are anti-dilutive for the
periods presented.
6. Property, plant and equipment
Accounting policies
Property, plant and equipment
The majority of the Group's freehold and long leasehold licensed land and
buildings, and the associated landlord's fixtures, fittings and equipment
(i.e. fixed fittings) are revalued annually and are therefore held at fair
value less depreciation. Tenant's fixtures and fittings (i.e. loose
fixtures) within freehold and long leasehold properties, are held at cost less
depreciation and impairment.
Short leasehold buildings (leases with an unexpired lease term of less than 50
years), unlicensed land and buildings and associated fixtures, fittings and
equipment are held at cost less depreciation and impairment.
Revaluation
The revaluation, performed at 27 September 2025, is determined via annual
third-party inspection of 20% of the sites with the aim that all sites are
individually valued approximately every five years. The valuation utilises
estimates of fair maintainable trade (FMT) and valuation multiples. The
revaluation determined by the annual inspection was carried out in accordance
with the RICS Valuation - Global Standards 2025 which incorporate the
International Valuation Standards and the RICS Valuation - Professional
Standards UK (the 'Red Book') assuming each asset is sold as a fully
operational trading entity.
Properties are valued as fully operational entities, to include fixtures and
fittings but excluding stock, tenant's fixtures and fittings and personal
goodwill.
The 80% of the freehold and long leasehold estate which is not subject to a
third-party valuation in the period is instead revalued internally by
management. The Group's external valuer provides advice to management in
relation to their internal valuation. This valuation is performed using
estimates of FMT, together with the same valuation multiples as those applied
by the external valuer. Sites impacted by expansionary capital investment in
the preceding twelve months are reviewed for impairment only, based on
estimated annualised post investment FMT against the carrying value of the
asset. Where the value of land and buildings derived purely from a multiple
applied to the FMT misrepresents the underlying asset value, a spot valuation
is applied.
Surpluses which arise from the revaluation exercise are included within other
comprehensive income (in the revaluation reserve) unless they are reversing a
revaluation deficit which has been recognised in the income statement
previously; in which case an amount equal to a maximum of that recognised in
the income statement previously is recognised in the income statement. Where
the revaluation exercise gives rise to a deficit, this is reflected directly
within the income statement, unless it is reversing a previous revaluation
surplus against the same asset; in which case an amount equal to the maximum
of the revaluation surplus is recognised within other comprehensive income (in
the revaluation reserve).
Impairment
Short leaseholds, unlicensed properties and fixtures and fittings are reviewed
on an outlet basis for impairment if events or changes in circumstances
indicate that the carrying amount may not be recoverable. Further details of
the impairment policy are provided in the impairment note 8.
6. Property, plant and equipment (continued)
Property, plant and equipment can be analysed as follows:
2025 2024
£m £m
At beginning of period 4,419 4,086
Acquired through business combinations - 7
Additions 177 163
Disposals (4) (2)
Net increase from property revaluation 99 258
Net impairment of short leasehold properties (5) -
Depreciation provided during the period (96) (92)
Exchange differences 1 (1)
At end of period 4,591 4,419
Revaluation and impairment recognised
Current period valuations have been incorporated into the consolidated
financial statements and the resulting revaluation adjustments have been taken
to the revaluation reserve or Group income statement as appropriate.
The impact of the revaluations/impairments described above is as follows:
2025 2024
52 weeks 52 weeks
£m £m
Group income statement
Revaluation deficit charged as an impairment (63) (120)
Reversal of past revaluation deficits 74 124
Total impairment reversal arising from the revaluation 11 4
Impairment of short leasehold and unlicensed properties (note 8) (7) (7)
Reversal of past impairments of short leasehold and unlicensed properties 2 7
(note 8)
Net impairment of short leaseholds and unlicensed properties (5) -
Total impairment reversal recognised in the income statement 6 4
Group statement of other comprehensive income
Unrealised revaluation surplus 165 356
Reversal of past revaluation surplus (77) (102)
Total movement recognised in other comprehensive income 88 254
Net increase in property, plant and equipment 94 258
6. Property, plant and equipment (continued)
Accounting judgements
Revaluation of freehold and long leasehold properties
The revaluation methodology is determined, with advice from CBRE, independent
chartered surveyors, and incorporates management judgement where appropriate.
The application of a valuation multiple to the FMT of each site is considered
the most appropriate method for the Group to determine the fair value of
freehold and long leasehold licensed land and buildings.
In the current and prior period, judgement has been applied to establish the
basis of FMT that a willing third-party buyer would assume. The estimation
of FMT is derived from the individual profit and loss accounts of pubs and
restaurants and is inclusive of the centrally recorded trading margins earned
by the Group but exclusive of certain head office costs. This represents the
Group's best view of the value that would be attributed by other reasonably
efficient operators. In both the current and prior periods FMT is estimated
with reference to the reported site performance, with averages of the last two
years performance taken in the current period.
Where sites have been impacted by expansionary capital investment in the
preceding twelve months, the FMT has been determined by estimating annualised
post-investment operating profit with reference to post-investment forecasts.
See sensitivity analysis shown below regarding sites with investment in the
current period.
For the purposes of the valuation, and in order to group together properties
of a similar nature, groupings by brand are applied for which standard
multiples have been established through third-party inspections of 20% of the
freehold and long leasehold licensed property estate. Judgements are applied
in assessing multiples on the basis of market evidence of transaction prices
and nature of the overall offer within the local market, with specific
consideration given to geographical location, ancillary revenue such as
accommodation sales from bedrooms and lease terms for long leasehold sites.
Further judgement is required when a spot valuation is applied where the
property value derived purely from a multiple applied to the FMT misrepresents
the underlying asset value with consideration given to the level of trade and
location characteristics.
Significant accounting estimates
Revaluation of freehold and long leasehold properties
The application of the valuation methodology requires two significant
estimates; the estimation of valuation multiples, which are determined via
third-party inspections; and an estimate of FMT.
In the prior period, inflation and costs stabilised, such that the Group's
external valuer considered that the level of reported site profitability was
representative of the FMT that a third-party, reasonably efficient operator
would include in arriving at a transaction price. In the current period,
trading conditions have remained stable, and the Group's external valuer has
determined FMT as the average of the current and prior period reported site
profitability for all sites other than those impacted by investment in either
period, or sites that have been spot valued.
The estimation of valuation multiples is derived from the valuer's knowledge
of market evidence of transaction prices for similar properties. In the
current period the multiples adopted are mostly in line with the prior period.
There is considered to be a significant risk that an adjustment to either of
these assumptions could lead to a material change in the property valuation
within the next year.
6. Property, plant and equipment (continued)
Significant accounting estimates (continued)
Sensitivity analysis
Changes in the FMT, or the multiple could materially impact the valuation of
the freehold and long leasehold properties, and as such they are both
considered to be significant estimates in the current period. The carrying
value of properties to which these estimates apply is £4,407m (2024
£4,260m).
FMT
In the current period, FMT has increased by 1% over the prior period's FMT,
excluding the sites with investment in the current period which are only
assessed for impairment. Given trading has now normalised following the
disruption caused by the Covid pandemic in 2020, and there is a more stable
inflationary environment, a return to pre Covid FMT movements is considered to
be within range of reasonably possible outcomes. Over the three years
reported prior to Covid the average movement in the FMT of the revalued estate
was 1%. Assuming multiples remain stable, it is estimated that a 1%
reduction in the FMT would generate an approximate £36m reduction in the
valuation. A 1% increase in the FMT is estimated to generate an approximate
£38m increase in the valuation. The sensitivity does not apply to sites
with spot valuations as these valuations are independent of reported operating
profits. Any change to the spot valuations would not be material.
Multiples
Valuation multiples are determined at an individual brand level. Over the
last three financial periods, the weighted average brand multiple has moved by
an average of 0.1, which is considered to be within the range of reasonably
possible outcomes for future movements in multiples. It is estimated that a
0.1 reduction in the multiple would generate an approximate £42m reduction in
the valuation. A 0.1 increase to the multiple is estimated to generate an
approximate £44m increase in the valuation.
Sites with investment in the current period
205 properties were subject to investment over the last 12 months and,
consistent with the Group's policy have been valued at previous valuation plus
the associated investment capital expenditure as an approximation of current
valuation. Trading results in the period immediately following an investment
in a site are less predictable and are therefore not taken into the assessment
of fair maintainable trade until a year has passed. There is a reasonable
possibility that the valuation of the invested properties will move materially
over the next 12 months as the post investment trading pattern becomes
clearer. Over the last two financial periods, the invested property
portfolio has seen a valuation uplift in the year subsequent to the
investment. If this pattern continues during FY 2026, then the uplift
recognised on FY 2025 invested properties could represent around 2.8% of the
overall property estate valuation. This is completely dependent on the
individual performance of those sites and past experience also indicates that
there is a risk of downward movements. The invested properties are reviewed
for impairment, based on estimated annualised post investment FMT against the
carrying value of the asset as described in the revaluation policy.
Impairment review
Short leasehold and unlicensed properties (comprising land, buildings,
fixtures, fittings and equipment) which are not revalued to fair market value,
are reviewed for impairment as described in the impairment note 8. A net
impairment of £5m (2024 £nil) has been recognised against short leasehold
and unlicensed properties in the period.
7. Leases
Right-of-use assets
Right-of-use assets can be analysed as follows:
2025 2024
£m £m
At beginning of period 307 327
Acquired through business combinations - 7
Additions 29 30
Disposals (3) (5)
Impairment (8) (17)
Depreciation provided during the period (36) (34)
Foreign currency movements 2 (1)
At end of period 291 307
Impairment review of right-of-use assets
Right-of-use assets are reviewed for impairment by comparing site recoverable
amounts to their carrying values. Impairment is considered at a
cash-generating unit level. A net impairment of £8m (2024 £17m) has been
recognised against right-of-use assets in the period. Details of the
impairment review at a cash-generating unit level are disclosed in note 8.
Lease liabilities
Analysed as:
Current lease liabilities - principal amounts due within twelve months 42 33
Non-current lease liabilities - principal amounts due after twelve months 392 414
434 447
8. Impairment
Accounting policies
Impairment - Property, plant and equipment, right-of-use assets, computer
software and goodwill
Impairment reviews are considered at a cash-generating unit level, with this
being an individual outlet.
The carrying value of assets for an individual outlet, comprise the property,
plant and equipment value, the associated right-of-use asset, computer
software and any attributable goodwill, that includes an allocation of central
asset values. At each balance sheet date, the Group assesses whether there is
any indication that the carrying value of assets for individual outlets may be
impaired. If any such impairment indicator exists then an impairment loss is
recognised in the income statement, whenever the carrying value of the outlet
exceeds its recoverable amount, which is determined as the higher of the value
in use, or fair value less costs to sell for each outlet. Any resulting
impairment relates to sites with poor trading performance, where the output of
the value in use calculations are insufficient to justify their current net
book value. Changes in outlet earnings or cash flows, the discount rate
applied to those cash flows, or the estimate of fair value less costs of
disposal could give rise to an additional impairment loss.
Where an impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised estimate of its recoverable amount, but only
so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the
asset in prior periods. A reversal of an impairment loss is recognised in
the income statement. An impairment reversal is only recognised where there
is a change in circumstances or favourable events since the last impairment
test impacting estimates used to determine recoverable amounts, not where it
results from the passage of time.
8. Impairment (continued)
Accounting policies (continued)
Accounting judgements
Impairment review of cash-generating units - property, plant and equipment,
right-of-use assets, computer software and goodwill
For the individual outlet level impairment review, judgement has been applied
to determine the most appropriate site level profit and cash flow forecasts
based on the Group forecast for FY 2026 to FY 2028 that was in place at the
balance sheet date.
Management apply judgement:
· when allocating overhead costs to site cash flows, with an overhead
allocation being made only for those costs that can be directly attributable
to a site on a consistent basis; and
· in the allocation of corporate level assets to individual cash
generating units, based on relative profitability.
Other sources of estimation uncertainty
Impairment review of cash-generating units - property, plant and equipment,
right-of-use assets, computer software and goodwill
The impairment review requires two key sources of estimation uncertainty in
calculating the value in use: the estimation of forecast cash flows for each
site and the selection of an appropriate discount rate. The discount rate is
applied consistently to each cash-generating unit.
Impairment review of cash-generating units, comprising property, plant and
equipment, right-of-use assets, computer software and goodwill
Recoverable amount is determined as the higher of the value in use, or fair
value less costs to sell for each outlet.
Value in use calculations use forecast trading performance pre-tax cash flows,
for years 1 to 3. These include steady increases to revenue and costs. In
the short to medium term, over the three year forecast period, no allowances
have been made for any potential impact activity related to climate change,
other than continued maintenance and infrastructure spend on existing
sustainability projects, as the impacts of this on future cash flows or
capital expenditure cannot yet be reasonably estimated or allocated to
cash-generating units.
The forecast cash flows are discounted by applying a pre-tax discount rate of
11.3% (2024 11.0%) and a long-term growth rate of 2.0% from year 4 (2024
2.0%). The long-term growth rate is applied to the net cash flows and is based
on up-to-date economic data points.
In addition to the short leasehold property and right-of-use asset impairment
review performed at a cash-generating unit level, the Group's freehold, long
and short leasehold cash generating units have been grouped together to ensure
that the unallocated corporate level assets are also considered for
impairment. The assumptions are consistent with those described above for the
value in use calculations performed at an individual outlet level, whilst also
including unallocated central overheads. As a result of this review, no
additional impairment has been recognised in the current period.
8. Impairment (continued)
In summary, the carrying value of the cash-generating units and impairment
charges and reversals recognised against those cash-generating units is as
follows:
Carrying value Impairment charges Impairment reversals Net impairment
Note 2025 2025 2025 2025
£m £m £m £m
Short leasehold properties 6 138 (7) 2 (5)
Right-of-use assets 7 291 (18) 10 (8)
Software 16 - - -
Goodwill 6 (1) - (1)
451 (26) 12 (14)
Carrying value Impairment charges Impairment reversals Net impairment
Note 2024 2024 2024 2024
£m £m £m £m
Short leasehold properties 6 122 (7) 7 -
Right-of-use assets 7 307 (29) 12 (17)
Software 6 (1) - (1)
Goodwill 7 - - -
442 (37) 19 (18)
Sensitivity analysis
Changes in forecast cash flows or the discount rate could impact the
impairment charge recognised against the cash-generating units, and corporate
level assets.
Forecast cash flows
The forecast pre-tax cash flows used in the value in use calculations are site
level forecasts determined from the Group forecast for FY 2026 to FY 2028 that
was in place at the balance sheet date. For short leasehold sites and
freehold/long leasehold sites with ROU or goodwill assets, should future cash
flows decline by 1%, this would result in an increase of £2m to the net
impairment charge recognised.
Discount rate
The pre-tax discount rate applied to the forecast cash flows is derived from
the Group's post-tax weighted average cost of capital (WACC). The assumptions
used in the calculation of the Group's WACC are benchmarked to externally
available data. A single discount rate is applied to all cash-generating
units. Over recent periods, the discount rate used in impairment reviews has
moved by c.1.0%. For short leasehold sites and freehold/long leasehold sites
with ROU or goodwill assets, an increase of 1.0% in the discount rate would
result in an increase of £4m to the net impairment charge recognised.
9. Borrowings and net debt
Borrowings can be analysed as follows:
2025 2024
£m £m
Current
Securitised debt(a) 137 130
Unsecured revolving credit facilities(b) - (1)
Overdrafts(c) 35 12
Other borrowings(d) 2 2
Total current 174 143
Non-current
Securitised debt(a,b) 900 1,041
Total borrowings 1,074 1,184
a. Stated net of deferred issue costs.
b. At 27 September 2025 the amount of £nil (2024 £1m) represents unamortised
issue costs.
c. The overdraft is within a cash pooling arrangement. In the cash flow
statement, cash and cash equivalents are presented net of this overdraft.
d. Short-term financing of employee advances.
2025 2024
£m £m
Analysis by year of repayment
Due within one year or on demand 174 143
Due between one and two years 160 157
Due between two and five years 463 458
Due after five years 277 426
Total borrowings 1,074 1,184
Securitised debt
The securitisation is governed by various covenants, warranties and events of
default, many of which apply to Mitchells & Butlers Retail Limited, the
Group's main operating subsidiary. There are two main financial covenants,
being the level of net assets and free cash flow (FCF) to debt service. FCF to
debt service represents the multiple of cash generated by sites within the
structure to the cost of debt service. This is tested quarterly on both a
trailing two quarter and a four quarter basis. There are additional covenants
regarding the maintenance and disposal of securitised properties and
restrictions on its ability to move cash, by way of dividends for example, to
other Group companies. Further details of the covenants are provided in the
going concern review in note 1.
Liquidity facility
Under the terms of the securitisation, the Group holds a liquidity facility of
£295m provided by two counterparties. The amount drawn at 27 September 2025
is £nil (2024 £nil).
Unsecured revolving credit facilities
In the prior period, the Group held a single unsecured committed revolving
credit facility of £200m. During the period, the unsecured committed
revolving credit facility of £200m was cancelled and replaced by a new
unsecured committed revolving credit facility of £150m which expires on 22
July 2028. The amount drawn at 27 September 2025 is £nil (2024 £nil).
There are covenants on the unsecured revolving credit facility relating to the
ratio of EBITDAR to rent plus interest and net debt to EBITDA based on the
performance of the unsecured estate. Further details of the covenants are
provided in the going concern review in note 1.
9. Borrowings and net debt (continued)
2025 2024
Net debt £m £m
Cash and cash equivalents 216 176
Overdraft (35) (12)
Cash and cash equivalents as presented in the cash flow statement(a) 181 164
Securitised debt (1,037) (1,171)
Unsecured revolving credit facility - 1
Derivatives hedging securitised debt(b) 15 19
Short-term financing of employee advances(c) (2) (2)
(843) (989)
Net debt excluding leases
Lease liabilities (434) (447)
Net debt including leases (1,277) (1,436)
a. Cash and cash equivalents, in the cash flow statement, are presented net of an
overdraft within a cash pooling arrangement relating to various entities
across the Group.
b. Represents the element of the fair value of currency swaps hedging the balance
sheet value of the Group's US$ denominated A3N loan notes. This amount is
disclosed separately to remove the impact of exchange movements which are
included in the securitised debt amount. Derivatives hedging debt restates
the US$ debt at $1.675:£1.
c. Advances to employees is a borrowing from Wagestream.
9. Borrowings and net debt (continued)
2025 2024
52 weeks 52 weeks
Movement in net debt excluding leases £m £m
Net increase in cash and cash equivalents 16 62
Add back cash flows in respect of other components of net debt:
Principal repayments on securitised debt 134 128
Principal receipts on cross currency swap (21) (21)
Principal payments on cross currency swap 17 16
Short term financing of employee advances - (2)
Decrease in net debt arising from cash flows 146 183
Movement in capitalised debt issue costs net of accrued interest (1) (1)
Decrease in net debt excluding leases 145 182
Opening net debt excluding leases (989) (1,170)
Foreign exchange movements on cash 1 (1)
Closing net debt excluding leases (843) (989)
Movement in lease liabilities:
2025 2024
52 weeks 52 weeks
£m £m
Opening lease liabilities (447) (463)
Acquired through business combinations - (5)
Additions(a) (26) (28)
Interest charged during the period (17) (17)
Repayment of principal 39 41
Payment of interest 14 17
Disposals 5 7
Foreign currency movements (2) 1
Closing lease liabilities (434) (447)
a. Additions to lease liabilities include new leases and lease
extensions or rent reviews relating to existing leases.
10. Finance costs and income
2025 2024
52 weeks 52 weeks
£m £m
Finance costs
Interest on securitised debt (72) (79)
Interest on other borrowings (11) (13)
Interest on lease liabilities (17) (17)
Total finance costs (100) (109)
Finance income
Interest receivable - cash 9 10
Net pensions finance income/(charge) (note 11) 7 (2)
11. Pensions
In the prior period the Trustees of the Mitchells & Butlers Executive
Pension Plan (MABEPP) bought out the liabilities of the plan with Legal &
General Assurance Society Limited through converting the overall bulk annuity
policy into individual policies in members own names. Subsequent to that,
and in the current period the scheme has been wound up.
As a result, retirement and death benefits for eligible employees in the
United Kingdom are now provided principally by the Mitchells & Butlers
Pension Plan (MABPP). This plan is a funded, HMRC approved, occupational
pension scheme with defined contribution and defined benefit sections. The
defined benefit section of the plan is now closed to future service accrual.
The defined benefit liabilities relate to this funded plan, together with an
unfunded unapproved pension arrangement (the Executive Top-Up Scheme, or
MABETUS). The assets of the MABPP plan are held in a self-administered trust
fund separate from the Company's assets.
Measurement of scheme assets and liabilities
MABPP - buy-in policy transaction
During the 53 weeks ended 30 September 2023, the Trustees of the MABPP entered
a Bulk Purchase Agreement (BPA) with Standard Life. The resulting policy was
set up to provide the plan with sufficient funding to cover all known member
benefits of the scheme. As at the balance sheet date the buy-in continues.
During the period, the Trustee and insurer have progressed a significant
amount of work on the data cleanse project that ensures the data and benefits
covered by the BPA accurately reflect the entitlements of the MABPP members.
Net reserves have been included within the MABPP balance sheet, that cover the
estimated additional costs for refinement of the benefit entitlements of the
MABPP members. These net reserves are as follows:
· £15m to cover the impact of contingent spouse pension
calculations (which is the majority of this cost), some data corrections and
GMP rectification. This amount is a best-estimate of a final premium that will
be due to the insurer when the buy-in data cleanse process is completed, and
therefore results in a value of the bulk annuity policy that is lower than the
defined benefit obligation in respect of the membership it covers by this
amount.
· £24m (2024 £16m) as an additional liability arising
from GMP equalisation; the majority of which will need to be secured with the
insurer in future, via the payment of an additional premium.
The GMP equalisation liability includes a £3m charge in the current period,
relating to amendment of the liability that has been recognised as a past
service cost within separately disclosed items (note 3).
These reserves may be updated in future as the data cleanse project progresses
to allow for any further changes.
11. Pensions (continued)
MABPP - recognition of actuarial surplus
Over the course of the previous period, the Trustees of MABPP resolved that
any surplus arising in MABPP can be used to pay for the employer contributions
to the defined contribution section of MABPP. In connection with this, before
the buy-out of MABEPP occurred in September 2024, the defined contribution
members within MABEPP were moved across to MABPP, along with the remaining
surplus funds from the MABEPP to enable future employer contributions for them
to be met out of the surplus in the MABPP. Since this was a change in the
Trustee's agreed use of the MABPP surplus compared to previous years, the
accounting surplus was recognised in full during the 52 weeks ended 28
September 2024. This economic benefit was determined over the future lifetime
of the DC section of the plan, in particular on the basis that this section
remains open to new members in its current form, and therefore will continue
to remain active for the foreseeable future.
Prior to the 52 week period ending 28 September 2024 no actuarial surplus had
been recognised as the Company did not have an unconditional right to recover
any surplus from the pension plans. During the 52 week period ending 27
September 2025, the MABPP surplus has funded £12m of the Company's employer
contributions, AVCs in respect of prior year bonus payments and death in
service benefits. This is shown in the surplus movements below.
Actuarial valuation
The actuarial valuations used for IAS 19 (revised) purposes are based on the
results of the latest full actuarial valuation carried out as at 31 March
2022, which completed in December 2022, and updated by the schemes'
independent qualified actuaries to 27 September 2025. The Plan's assets are
stated at market value at 27 September 2025 and the liabilities of the Plan
and the Scheme have been assessed as at the same date using the projected unit
method. IAS 19 (revised) requires that the schemes' liabilities are discounted
using market yields at the end of the period on high-quality corporate bonds.
The principal financial assumptions have been updated to reflect changes in
market conditions in the period and are as follows.
Main plan and MABETUS Main plan and MABETUS Executive plan
2025 2024 2024
Discount rate 5.9% 5.1% 5.1%
Pensions increases - RPI max 5% 3.0% 3.0% 3.0%
Inflation rate - RPI 3.1% 3.2% 3.2%
The discount rate is based on a yield curve for AA corporate rated bonds which
are consistent with the currency and estimated term of retirement benefit
liabilities.
To determine the RPI assumption the gilt implied inflation yield curve has
been used, reflecting the duration of the Plan's cash flows, and adjusting for
an assumed inflation risk premium.
11. Pensions (continued)
Amounts recognised in respect of defined benefit schemes
The following amounts relating to the Group's defined benefit and defined
contribution arrangements have been recognised in the Group income statement
and Group statement of comprehensive income.
2025 2024
52 weeks 52 weeks
Group income statement £m £m
Operating profit:
Employer contributions (defined contribution plans) (21) (19)
Administrative costs (defined benefit plans) (4) (5)
Charge to operating profit before separately disclosed items (25) (24)
Past service cost (3) -
Charge to operating profit (28) (24)
Finance costs:
Net pensions finance income on actuarial surplus 7 6
Additional pensions finance charge due to asset ceiling - (8)
Net finance income/(charge) in respect of pensions 7 (2)
Total charge (21) (26)
2025 2024
52 weeks 52 weeks
Group statement of comprehensive income £m £m
(Loss)/return on scheme assets and effects of changes in assumptions (18) 16
Movement in pension liabilities recognised due to asset ceiling - 150
Remeasurement of pension liabilities (18) 166
The net pension surplus is presented in the Group balance sheet as follows.
Group balance sheet 2025 2024
£m £m
Pension surplus (MABPP) 132 164
Current pension liability (MABETUS) (1) (1)
Non-current pension liability (MABETUS) (21) (24)
Net actuarial surplus 110 139
Associated deferred tax liability (28) (35)
11. Pensions (continued)
The movement in the net actuarial surplus in the period is as follows:
2025 2024
£m £m
Actuarial surplus at beginning of period 139 121
Interest income 7 6
(Loss)/return on scheme assets and effects of changes in assumptions (18) 16
Employer contributions to MABETUS 1 1
Utilisation of pension surplus (12) -
Past service cost (3) -
Administration costs (4) (5)
At end of period 110 139
12. Share capital and share premium
2025 2024
Called up share capital Number of shares £m Number of shares £m
Allotted, called up and fully paid
Ordinary shares of 8(13/)(24)p each
At start of period 598,057,671 51 597,726,859 51
Share capital issued(a) 806,728 - 330,812 -
At end of period 598,864,399 51 598,057,671 51
a. During the period, the Company issued 806,728 (2024 330,812) shares
for total consideration of £1m (2024 £nil). The nominal value of shares
issued under share option schemes was £68,908 (2024 £28,257), with £1m
(2024 £nil) recognised within share premium.
All of the ordinary shares rank equally with respect to voting rights and
rights to receive Ordinary and Special Dividends. There are no restrictions on
the rights to transfer shares.
Dividends
There were no dividends declared or paid during the current period.
Share premium account
The share premium account represents amounts received in excess of the nominal
value of shares on issue of new shares. Share premium of £1m (2024 £nil) has
been recognised on shares issued in the period.
13. Financial statements
The preliminary statement of results was approved by the Board of Directors on
27 November 2025.
The financial information set out above does not constitute the Group's
statutory consolidated financial statements for the 52 weeks ended 27
September 2025 or for the 52 weeks ended 28 September 2024 but is derived from
those statutory consolidated financial statements. Statutory accounts for 2024
have been delivered to the Registrar of Companies, and those for 2025 will be
delivered following the Company's Annual General Meeting. The auditor has
reported on those accounts; their reports were (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
Alternative Performance Measures
The performance of the Group is assessed using a number of Alternative
Performance Measures (APMs).
The Group's results are presented both before and after separately disclosed
items. Adjusted profit measures are presented excluding separately disclosed
items as we believe this provides both management and investors with useful
additional information about the Group's performance and supports an effective
comparison of the Group's trading performance from one period to the next.
Adjusted profit measures are reconciled to unadjusted IFRS results on the face
of the income statement with details of separately disclosed items provided in
note 3.
The Group's results are also described using other measures that are not
defined under IFRS and are therefore considered to be APMs. These APMs are
used by management to monitor business performance against both shorter term
budgets and forecasts but also against the Group's longer-term strategic
plans.
APMs used to explain and monitor Group performance include:
APM Definition Source
EBITDA Earnings before interest, tax, depreciation and amortisation, before movements Group income statement
in the valuation of the property portfolio.
Adjusted EBITDA EBITDA before separately disclosed items is used to calculate net debt to Group income statement
EBITDA.
Operating profit Earnings before interest and tax. Group income statement
Adjusted operating profit Operating profit before separately disclosed items. Group income statement
Like-for-like sales growth Like-for-like sales growth reflects the sales performance against the APM A
comparable period in the prior year of UK managed pubs, bars and restaurants
that were trading in the two periods being compared, unless marketed for
disposal.
Adjusted earnings per share (EPS) Earnings per share using profit before separately disclosed items. Note 5
Net debt Net debt comprises cash and cash equivalents, cash deposits net of borrowings Note 9
and discounted lease liabilities. Presented on a constant currency basis due
to the inclusion of the fixed exchange rate component of the cross currency
swap.
Net debt : Adjusted EBITDA The multiple of net debt including lease liabilities, as per the balance sheet APM D
compared against EBITDA before separately disclosed items, which is a widely
used leverage measure in the industry.
Return on capital Return generating capital includes investments made in new sites and APM E
investment in existing assets that materially changes the guest offer. Return
on investment is measured by incremental site EBITDA following investment
expressed as a percentage of return generating capital. Incremental EBITDA
reflects the increase in profit following investment, with the pre-investment
profit being measured as the average annual profit prior to investment. Return
on investment is measured for four years following investment. Measurement
commences three periods following the opening of the site.
A. Like-for-like sales
The sales this year compared to the sales in the previous year of all UK
managed sites that were trading in the two periods being compared, expressed
as a percentage. This widely used industry measure provides additional insight
into the trading performance than total revenue which is impacted by
acquisitions and disposals. Like-for-like sales is provided on a 52-week
basis.
2025 2024 Year-on-year
Source £m £m %
Reported revenue Income statement 2,711.0 2,610.0 3.9%
Less non like-for-like sales (237.3) (237.3) 0.0%
Like-for-like sales 2,473.7 2,372.7 4.3%
Drink sales
2025 2024 Year-on-year
Source £m £m %
Reported drink revenue 1,172.0 1,132.0 3.5%
Less non like-for-like drink sales (91.0) (93.0) 2.2%
Drink like-for-like sales 1,081.0 1,039.0 4.0%
Food sales
2025 2024 Year-on-year
Source £m £m %
Reported food revenue 1,440.0 1,385.0 4.0%
Less non like-for-like food sales (131.0) (126.9) (3.2%)
Food like-for-like sales 1,309.0 1,258.1 4.0%
Other sales
2025 2024 Year-on-year
Source £m £m %
Reported other revenue 99.0 93.0 6.5%
Less non like-for-like other sales (15.3) (17.4) 12.1%
Other like-for-like sales 83.7 75.6 10.7%
B. Adjusted operating profit
Operating profit before separately disclosed items as set out in the Group
Income Statement. Separately disclosed items are those which are separately
identified by virtue of their size or nature. Excluding these items provides
useful additional information in the comparison of the Group's trading
performance from one period to the next.
2025 2024 Year-on
-year
Source £m £m %
Operating profit Income statement 322 300 7.3%
Separately disclosed items Income statement 8 12 (33.3%)
Adjusted operating profit Income statement 330 312 5.8%
Reported revenue Income statement 2,711 2,610 3.9%
Adjusted operating margin 12.2% 12.0% 0.2ppts
C. Adjusted earnings per share
Earnings per share using profit before separately disclosed items. Separately
disclosed items are those which are separately identified by virtue of their
size or nature. Excluding these items allows a more effective comparison of
the Group's trading performance from one period to the next.
2025 2024 Year-on
-year
Source £m £m %
Profit/(loss) for the period Income statement 177 149 18.8%
Add back separately disclosed items Income statement 7 8 (12.5%)
Adjusted profit 184 157 17.2%
Basic weighted average number of shares Note 5 595 595 -%
Adjusted earnings per share 30.9p 26.4p 17.0%
D. Net Debt: Adjusted EBITDA
The multiple of net debt as per the balance sheet compared against EBITDA
before separately disclosed items which is a widely used leverage measure in
the industry. From FY 2020, leases are included in net debt following adoption
of IFRS16. Adjusted EBITDA is used for this measure to prevent distortions in
performance resulting from separately disclosed items.
2025 2024 Year-on
-year
Source £m £m %
Net Debt including leases Note 9 1,277 1,436 (11.1%)
EBITDA Income statement 460 444 3.6%
Add back separately disclosed items Income statement 5 (2) 350.0%
Adjusted EBITDA 465 442 5.2%
Net debt : Adjusted EBITDA 2.7 3.2
E. Return on capital
Return generating capital includes investments made in new sites and
investment in existing assets that materially changes the guest offer. Return
on investment is measured by incremental site EBITDA following investment
expressed as a percentage of return generating capital. Return on investment
is measured for four years following investment. Measurement of return
commences three periods following the opening of the site.
Return on expansionary capital
2024 2025 2025 2025
FY21-24 FY22-24 FY25 Total
Source £m £m £m £m
Maintenance and infrastructure 178 164 65 229
Remodel - refurbishment 203 194 91 285
Non-expansionary capital 381 358 156 514
Remodel expansionary 8 9 2 11
Conversions and acquisitions* 43 50 14 64
Expansionary capital for return calculation 51 59 16 75
Expansionary capital open < 3 periods pre year end 7 (5) 8 3
Freehold purchases 26 20 1 21
Total capital Cash flow 465 432 181 613
Adjusted EBITDA Income statement 1,337 1,169 465 1,634
Non-incremental EBITDA 1,327.3 1,159 463 1,622
Incremental EBITDA 9.7 10 2.5 12.5
Return on expansionary capital 19% 17% 16% 16.7%
*Conversion and acquisition capital is net of capex incurred for projects
which have been open for less than 3 periods pre year end
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