REG - Mitchells & Butlers - HALF YEAR RESULTS
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260521:nRSU1652Fa&default-theme=true
RNS Number : 1652F Mitchells & Butlers PLC 21 May 2026
MITCHELLS & BUTLERS PLC
LEI no: 213800JHYNDNB1NS2W10
21 May 2026
HALF YEAR RESULTS
(For the 28 weeks ended 11 April 2026)
Highlights
- Robust trading performance with like-for-like sales(a) growth of 3.3% over the
first half
- Adjusted operating profit(a) of £181m maintained despite inflationary cost
pressure
- Record guest review scores of 4.7 out of 5 across the brand portfolio
Reported results
- Total revenue of £1,490m (HY 2025 £1,454m)
- Operating profit of £185m (HY 2025 £181m)
- Profit before tax of £143m (HY 2025 £134m)
- Basic earnings per share of 17.9p (HY 2025 16.8p)
Trading results
- Adjusted operating profit(a) £181m (HY 2025 £181m)
- Adjusted earnings per share(a) of 17.4p (HY 2025 16.8p)
Balance sheet and cash flow
- Cash inflow before bond amortisation of £98m (HY 2025 £131m)
- Net debt(a) reduced to £747m (HY 2025 £860m), excluding £405m of IFRS 16
lease liabilities (HY 2025 £438m)
Phil Urban, Chief Executive, commented:
"We have delivered another robust performance over the first half reflecting
continued focus on enhancing guest appeal across our diverse portfolio of
brands, driving sales growth through compelling customer offers and
disciplined execution. Maintaining profits despite the significant
inflationary cost challenges facing the sector is testament to the dedication
of our teams in delivering the benefits of our Ignite and capital
programmes.
Despite the backdrop of macro uncertainty our priorities remain unchanged, our
guest scores are at record highs, we remain committed to the delivery of
quality experiences, and we are well placed to further grow market share."
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.
There will be a presentation held today at 8:30am accessible by phone on 0203
936 2999, code: 235375 and at
https://www.netroadshow.com/events/login/1PeTHmohYBazaFEIhmscj4V6Rf62GltvvIug6
(https://www.netroadshow.com/events/login/1PeTHmohYBazaFEIhmscj4V6Rf62GltvvIug6)
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/hy2026/analystspresentation
(https://www.mbplc.com/hy2026/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
Jenny Bahr (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 through the first half of the year with like-for-like
sales(a) growth of 3.3%. Despite significant cost inflation, due primarily
to labour costs and food inflation, our disciplined cost control combined with
delivery of Ignite efficiencies has resulted in stable operating profit(a) of
£181m (HY 2025 £181m).
Like-for-like sales(a) grew by 3.0% in the 30 weeks to 25 April, including
Easter in both years, driven by a very strong first quarter. In the most
recent 3 weeks like-for-like sales(a) growth of 1.1% was broadly consistent
with the second quarter reflecting a strong prior year comparative, which
benefited from favourable weather alongside some indications of macroeconomic
pressures and, more recently, disruption from tube strikes. Over the first
half we continued our outperformance to the market(b) overall as measured by
the CGA Business Tracker.
Cost headwinds for the current financial year are anticipated to be c.£120m
before mitigation, slightly lower than previously guided, representing c.5.5%
of our cost base. This will be about 60% weighted to the first half due
principally to the increased rate of employers' national insurance
contributions, which was effective from April 2025, annualising at the half
year. Energy costs have now been fully secured for the current financial
year.
We expect cost headwinds, before mitigation, for the FY 2027 financial year to
normalise at a lower level of around £95m, representing c.4% of our cost
base. We currently have 15% of energy costs secured for FY 2027.
Looking forward, with a strong balance sheet, an enviable estate of well
positioned sites backed by a diversified portfolio of brands and offers, we
face the future with confidence that we will continue to be successful in our
market and generate further value.
BUSINESS REVIEW
Total sales across the period were £1,490m reflecting 2.5% growth on HY 2025.
Like-for-like sales(a) increased by 3.3% with strong performances through the
brand portfolio. Adjusted operating profit(a) of £181m was maintained (HY
2025 £181m) despite significant inflationary cost headwinds.
The business traded very strongly across the festive season with like-for-like
sales(a) growth of 7.7% over the core three-week period(c), supported by
volume growth, and particularly over the five key festive days(d) which
generated combined like-for-like sales(a) growth of 10.5%. Through the first
quarter like-for-like sales(a) strengthened across the brand portfolio,
growing to 4.5%, and remaining well ahead of the market(b).
Sales growth in the second quarter reduced to 1.8%, comprising drinks sales
growth of 0.7% and food sales growth of 3.0%, reflecting a strong performance
comparative, which benefitted from favourable weather. Broader macroeconomic
conditions also appear to have had a modest impact on discretionary spending
during the period. However encouragingly key dates continued to perform well,
with like-for-like growth achieved on Mother's Day against a very strong
performance last year.
Over the first half, we continued to outperform the market(b) as represented
by the CGA Business tracker, and we are confident that this will continue into
the second half and beyond.
Over the past year the industry has faced a wave of increased cost headwinds
resulting in a return to supply contraction across the sector, after numbers
had begun to stabilise in early 2025. In the six months to April 2026 there
was an average of 20 net closures a week with food-led sites being
particularly impacted (NIQ Hospitality Market Monitor April 2026).
OUR STRATEGIC PRIORITIES
Our strategy, based on three key pillars, has provided the foundation for our
ongoing strong 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. The diversity of our portfolio
is a key strength, particularly in periods of uncertainty, with trusted,
well‑known brands offering guests flexible choices that allow them to tailor
their eating‑out decisions to their needs.
Our Ignite programme of work remains a key focus for the business and is at
the core of our long-term value creation. We currently have around 40
initiatives underway across a range of areas, all focused on driving sales and
delivering cost efficiencies. A number of initiatives focus specifically on
enhancing guest experience in order to drive sales growth and build loyalty.
The success of these initiatives is reflected in sustained like-for-like
sales(a) growth as well as continued improvement in guest review scores, which
averaged 4.7 out of 5 over the first half.
Enhancing productivity and efficiency to help mitigate inflationary costs
remains an important focus and has been critical in delivering stable profits
over the first half. We have a range of tools and initiatives in place
designed to improve operational efficiency including our labour scheduling
system which takes a data-led approach to enhancing the deployment of our
teams. This system enables our General Managers to maximise sales at busy
times as well as reducing costs in shoulder periods to increase profitability
over the day. Given our scale, marginal gains in deployment at site level
aggregate to significant margin efficiencies at group level. We therefore
remain focused on maximising the potential value of this technology.
We are committed to enhancing the efficiency of our buildings and continue to
roll out the use of remote control in-site energy systems which have delivered
proven energy consumption savings. 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. Our energy initiatives help us to improve efficiency whilst also
supporting our sustainability objectives.
We are embracing the opportunity associated with building AI functionality
into our guest journey, as well as in our central support functions, with a
number of trials underway. For example, we are trialling AI technology at our
host point which provides individual guest preferences to personalise the
host's interaction with guests. In addition, we have built chatbot
functionality into a brand website to respond to guests' increasing
expectation of being able to access information quickly and effectively
through a conversational format. We believe there are multiple further
opportunities to utilise AI to deliver value across the organisation and will
continue to explore and grow opportunities in this area.
In technology, we are also investing in a new HR platform, delivering enhanced
efficiency of compliance for our central teams alongside functionality
designed to improve team productivity and retention. Following extensive
development and testing, the system will go live over the summer. In addition,
our new guest data platform enables more personalised engagement, supporting
guest loyalty and allowing us to use our data more effectively to drive
targeted, higher‑return marketing activity. We have also invested in
estate-wide replacement of end-of-life network infrastructure and transition
to a new long-term technology platform and hosting partner.
Our capital programme continues to deliver significant value through improving
the competitive position of our pubs and restaurants within their local
markets. Enhancing the effectiveness of delivery of the programme has long
been an area of Ignite focus, ensuring optimisation of closure and re-opening
timing, streamlining of costs and rigorous analysis of post-investment
performance. Over the first half, we completed 122 investment projects
comprising 113 remodels, 4 conversions and 5 acquisitions. We are generating
strong returns, currently in excess of 30% on remodels, justifying an
increasing allocation of capital to this area as we look to re-establish an
average 7-year investment cycle.
We acquired 5 sites during the period, one of which was the purchase of the
freehold of a site which we previously held as leasehold. Four new sites
were acquired, one of which is in Germany and the remaining three in the UK of
which two properties include hotel rooms. We remain opportunistic in relation
to new site acquisition and welcome the opportunity to add high quality sites
to the estate.
PEOPLE
Our people remain fundamental to delivering great guest experiences, with
engagement continuing to strengthen across all employee groups and turnover
falling further and reaching record low levels during the first half of the
year. This sustained progress reflects the strength of our Employee Value
Proposition, combining a strong sense of belonging and security with clear
development and progression opportunities. We are proud to be recognised as
the number one apprenticeship employer in the Department for Education awards,
as rated by our own apprentices. We continue to invest in talent technology
which further supports skills development and career progression.
SUSTAINABILITY
We are committed to reducing the environmental impact of our business and the
Board has challenging targets to drive continued momentum in this area. We
have committed to:
- Net Zero emissions by 2040, including scope 1, 2 and 3
- Zero operational waste to landfill by 2030
- 50% reduction in food waste by 2030
We remain focused on working towards our sustainability goals and are pleased
with the progress we have made. During the first half we have continued to
invest in sustainability capital, we now have 274 sites with solar panels, and
significant further opportunity to grow our production of renewable energy.
We have electrified 100 kitchens, reducing our reliance on gas for cooking,
and have fully removed gas in 29 sites taking the learnings from these
projects forward to expand the removal of gas in the coming years.
Our teams are vital to the delivery of progress in other areas where behaviour
change and engagement is required to deliver progress. One example of this is
recycling, and we are pleased to have increased our recycling rates to over
60% in the year to date. We provide support for these types of initiatives
through our dedicated network of sustainable operations ambassadors, as well
as centrally developed online training.
From a social perspective we are proud of our charity partnership with Social
Bite, focused on addressing the issue of homelessness in the UK. We have
raised over £2.5m over the past 18 months to support Social Bite's work and
have employed 40 people impacted by homelessness through our Job's First
programme, providing support and access to our best-in-class training
capabilities.
We know that our people are passionate about improving the environmental
impact of our business whilst having a positive impact on the communities we
operate in 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 half year was £143m (HY 2025
£134m), on sales of £1,490m (HY 2025 £1,454m).
The Group Income Statement discloses adjusted profit and earnings per share
information that excludes separately disclosed items, disclosed 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)
HY 2026 HY 2026 HY 2025
£m £m £m
Revenue 1,490 1,490 1,454
Operating profit 185 181 181
Profit before tax 143 139 134
Earnings per share 17.9p 17.4p 16.8p
Operating margin 12.4% 12.1% 12.4%
At the end of the period, the total estate comprised 1,712 sites in the UK and
Germany of which 1,638 are directly managed.
Revenue
Total revenue of £1,490m (HY 2025 £1,454m) reflects growth of 2.5%, a strong
period of trading.
Like-for-like sales(a) in the first half increased by 3.3%, comprising an
increase in like-for-like food sales(a) of 4.1% and of like-for-like drink
sales(a) of 2.4% driven by strengthening spend per head. Slower sales growth
in the second quarter reflected a strong prior year comparative, which
benefited from unseasonably favourable weather, alongside some indications of
macroeconomic pressure on spending.
Like-for-like sales(a):
Weeks 1-15 Weeks 16-28 Weeks 1-28
Q1 Q2 H1
Food 5.1% 3.0% 4.1%
Drink 3.8% 0.7% 2.4%
Total 4.5% 1.8% 3.3%
Like-for-like sales(a) grew by 3.0% in the 30 weeks to 25 April, including
Easter in both years and by 1.1% in the most recent 3 week period.
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. In the period
net profit after tax arising on property disposals of £3m was recognised as a
separately disclosed item. Refer to Note 4 to the consolidated financial
statements for comparative information.
Operating profit and margins(a)
Adjusted operating profit(a) for the first half was £181m (HY 2025 £181m),
in line with the first half of the previous year.
Cost headwinds for the current financial year are anticipated to be £120m
before mitigation, representing c.5.5% of our cost base. This is expected to
be 60% weighted to the first half in part due to £11m relating to the
increased rate of employer national insurance contribution, effective from
April 2025, annualising at the half year. Energy costs have now been fully
secured for the current financial year. Adjusted operating margin of 12.1%
was 0.3ppts lower than HY 2025 driven by these inflationary costs.
We expect cost headwinds, before mitigation, for FY 2027 to normalise at
around £95m, representing c.4% of our cost base.
Interest
Net finance costs of £45m (HY 2025 £50m) for the half year were £5m lower
than the same period last year as gearing reduced. The net pensions finance
income of £3m (HY 2025 £3m) reflects the surplus funding position now
recognised on the balance sheet.
Earnings per share
Basic earnings per share were 17.9p with adjusted earnings per share(a) of
17.4p (HY 2025 16.8p basic and adjusted earnings per share(a)).
The basic weighted average number of shares in the period was 597m and the
total number of shares issued at the balance sheet date was 600m.
Cash flow
HY 2026 HY 2025
£m £m
EBITDA before movements in the valuation of the property portfolio 260 252
Non-cash share-based payment and pension costs and other 3 6
Utilisation of pension surplus for DC contributions 7 3
Operating cash flow before movements in working capital and pension 270 261
contributions
Working capital movement 45 30
Pension escrow return - 12
Pension contributions (1) (1)
Cash flow from operations 314 302
Capital expenditure (117) (92)
Acquisition of Pesto Restaurants Limited - contingent consideration (11) -
Net finance lease principal payments (26) (22)
Interest on lease liabilities (11) (9)
Net interest paid (31) (37)
Purchase of own shares (3) (2)
Tax (20) (10)
Other 3 1
Net cash flow before bond amortisation 98 131
Mandatory bond amortisation (68) (64)
Net cash flow 30 67
Net cash inflow for the period before bond amortisation of £98m (HY 2025
£131m) benefitted from £7m utilisation of pension surplus towards ongoing DC
contributions and working capital inflow of £45m due to payment timing
differences. Capital expenditure increased to £117m with a further £11m
outflow in respect of the contingent consideration element of the acquisition
of Pesto Restaurants.
After all outgoings, including mandatory bond amortisation of £68m (including
the net impact of currency swaps), cash inflow was £30m (HY 2025 £67m).
Capital expenditure
Capital expenditure of £117m (HY 2025 £92m) comprises £115m from the
purchase of property, plant and equipment and £2m in relation to intangible
assets.
HY 2026 HY 2025
£m # £m #
Maintenance and infrastructure ( ) 40 33
Remodels - refurbishment 59 113 45 87
Conversions 6 4 8 5
Acquisitions - freehold 11 4 4 2
Acquisitions - leasehold 1 1 2 1
Total return generating capital expenditure 77 122 59 95
Total capital expenditure 117 92
Maintenance and infrastructure investment in the period was elevated due to
estate-wide replacement of end-of-life network infrastructure and transition
to a new long-term technology platform and hosting partner. Our solar panel
installation programme also accelerated over the first half.
We acquired 5 sites during the first half for total consideration of £12m.
Four new trading sites were acquired, one in Germany and three in the UK, with
two properties including hotel rooms. In addition, we purchased the freehold
of one previously leased site. Since the balance sheet date, a further two
freehold sites have been acquired.
Remodel project numbers have increased in the period as we remain committed to
the resumption of an average seven-year refurbishment cycle across our estate,
supported by strong returns with the programme continuing to generate returns
in excess of 30% .
On the basis of strong returns and an increase in site acquisition we expect
total capital expenditure in the year to increase to c.£230m.
Pensions
Retirement and death benefits are now provided principally by the Mitchells
& Butlers Pension Plan (MABPP).
During the period, the MABPP defined benefit surplus has continued to fund the
settlement of costs relating to the defined contribution section of the
plan. In the current period the plan has funded £7m (HY 2025 £3m) of
employer contributions.
In addition, one further scheme remains. This is closed and unfunded and has
estimated liabilities of £21m (HY 2025 £21m).
Net debt and facilities
On the back of a strong cash performance, net debt(a) at the period end
reduced to £1,152m, comprised of £747m non-lease liabilities and lease
liabilities of £405m (HY 2025 £1,298m comprised of £860m non-lease
liabilities and lease liabilities of £438m). This represents a multiple of
1.6 times EBITDA over the last year excluding lease liabilities (2.5 times
including these liabilities).
Further details of existing debt arrangements and an analysis of net debt can
be found in Note 10 to the 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.
Director's responsibility statement
We confirm that to the best of our knowledge:
- The condensed set of financial statements has been prepared in accordance with
IAS 34 'Interim Financial Reporting' as required by DTR 4.2.4R and to the best
of their knowledge gives a true and fair view of the information required by
DTR 4.2.4R;
- The interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events during the first 28
weeks and description of principal risks and uncertainties for the remaining
24 weeks of the year); and
- The interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and
changes therein).
This responsibility statement was approved by the Board of Directors on 20 May
2026 and is signed on its behalf by:
Tim Jones
Chief Financial Officer
20 May 2026
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
c - 14 December 2025 to 3 January 2026
d - Christmas Eve, Christmas Day, Boxing Day, New Year's Eve, New Year's Day
GROUP CONDENSED INCOME STATEMENT
for the 28 weeks ended 11 April 2026
2026 2025 2025
28 weeks 28 weeks 52 weeks
(Unaudited) (Unaudited) (Audited)
Before separately disclosed items(a) Before separately disclosed items(a) Before separately disclosed items(a)
Total Total Total
Notes £m £m £m £m £m £m
Revenue 3 1,490 1,490 1,454 1,454 2,711 2,711
Operating costs before depreciation, amortisation and movements in the (1,234) (1,234) (1,202) (1,202) (2,246) (2,252)
valuation of the property portfolio
Net profit arising on property disposals - 4 - - - 1
EBITDA(b) before movements in the valuation of the property portfolio 256 260 252 252 465 460
Depreciation, amortisation and movements in the valuation of the property (75) (75) (71) (71) (135) (138)
portfolio
Operating profit 181 185 181 181 330 322
Finance costs 5 (49) (49) (55) (55) (100) (100)
Finance income 5 4 4 5 5 9 9
Net pensions finance income 3 3 3 3 7 7
5,11
Profit before tax 139 143 134 134 246 238
Tax charge (35) (36) (34) (34) (62) (61)
6
Profit for the period 104 107 100 100
184 177
Earnings per ordinary share:
7
Basic 17.4p 17.9p 16.8p 16.8p 30.9p 29.7p
Diluted 17.3p 17.8p 16.7p 16.7p 30.6p 29.5p
a. Separately disclosed items are explained and analysed in note 4.
b. Earnings before interest, tax, depreciation, amortisation and movements in the
valuation of the property portfolio.
All results relate to continuing operations.
GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
for the 28 weeks ended 11 April 2026
2026 2025 2025
28 weeks 28 weeks 52 weeks
Notes £m £m £m
(Unaudited) (Unaudited) (Audited)
Profit for the period 107 100 177
Items that will not be reclassified subsequently to profit or loss:
Unrealised gain on revaluation of the property portfolio - - 88
Remeasurement of pension liabilities 11 (2) (16) (18)
Tax relating to items not reclassified 6 - 4 (13)
(2) (12) 57
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges:
- Gains arising during the period 1 14 10
- Reclassification adjustments for items included in profit or loss 4 - 5
Tax relating to items that may be reclassified 6 (1) (4) (4)
4 10 11
Other comprehensive income /(expense) after tax 2 (2) 68
Total comprehensive income for the period 109 98 245
GROUP CONDENSED BALANCE SHEET
11 April 2026 2026 2025 2025
11 April 12 April 27 September
Notes £m £m £m
ASSETS (Unaudited) (Unaudited) (Audited)
Goodwill and other intangible assets 8 28 21 28
Property, plant and equipment 8 4,645 4,451 4,591
Right-of-use assets 9 276 302 291
Finance lease receivables 9 10 10
Pension surplus 11 123 141 132
Deferred tax asset 2 3 2
Derivative financial instruments 12 13 19 15
Total non-current assets 5,096 4,947 5,069
Inventories 28 28 26
Trade and other receivables 75 73 79
Current tax asset 1 - 2
Finance lease receivables 1 2 1
Derivative financial instruments 12 - 1 -
Cash and cash equivalents 10 240 253 216
Total current assets 345 357 324
Total assets 5,441 5,304 5,393
LIABILITIES
Pension liabilities 11 (1) (1) (1)
Trade and other payables (501) (492) (473)
Current tax liabilities (3) (2) -
Borrowings 10 (172) (156) (174)
Lease liabilities 9 (37) (42) (42)
Derivative financial instruments 12 (3) (2) (4)
Total current liabilities (717) (695) (694)
Pension liabilities 11 (21) (21) (21)
Other payables - (8) -
Borrowings 10 (828) (976) (900)
Lease liabilities 9 (368) (396) (392)
Derivative financial instruments 12 (7) (15) (11)
Deferred tax liabilities (559) (514) (546)
Provisions (12) (12) (13)
Total non-current liabilities (1,795) (1,942) (1,883)
Total liabilities (2,512) (2,637) (2,577)
Net assets 2,929 2,667 2,816
EQUITY
Called up share capital 51 51 51
Share premium account 360 358 358
Capital redemption reserve 3 3 3
Revaluation reserve 1,209 1,143 1,209
Own shares held (6) (7) (10)
Hedging reserve (6) (11) (10)
Translation reserve 14 14 14
Retained earnings 1,304 1,116 1,201
Total equity 2,929 2,667 2,816
GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
for the 28 weeks ended 11 April 2026
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 28 September 2024 (Audited) 51 357 3 1,143 (9) (21) 14 1,028 2,566
- - - - - - - 100 100
Profit for the period
Other comprehensive income/(expense) - - - - - 10 - (12) (2)
Total comprehensive income - - - - - 10 - 88 98
Share Capital Issued - 1 - - - - - - 1
Purchase of own shares - - - - (2) - - - (2)
Release of own shares - - - - 4 - - (4) -
Credit in respect of share-based payments - - - - - - - 4 4
At 12 April 2025 51 358 3 1,143 (7) (11) 14 1,116 2,667
(Unaudited)
Profit for the period - - - - - - - 77 77
Other comprehensive income - - - 66 - 1 - 3 70
Total comprehensive income - - - 66 - 1 - 80 147
Purchase of own shares - - - - (3) - - - (3)
Credit in respect of share-based payments - - - - - - - 5 5
At 27 September 2025 (Audited) 51 358 3 1,209 (10) (10) 14 1,201 2,816
Profit for the period - - - - - - - 107 107
Other comprehensive income /(expense) - - - - - 4 - (2) 2
Total comprehensive income - - - - - 4 - 105 109
Share capital issued - 2 - - - - - - 2
Purchase of own shares - - - - (3) - - - (3)
Release of own shares - - - - 7 - - (7) -
Credit in respect of share-based payments - - - - - - - 5 5
At 11 April 2026 51 360 3 1,209 (6) (6) 14 1,304 2,929
(Unaudited)
GROUP CONDENSED CASH FLOW STATEMENT
for the 28 weeks ended 11 April 2026
2026 2025 2025
28 weeks 28 weeks 52 weeks
Notes £m £m £m
Cash flow from operations (Unaudited) (Unaudited) (Audited)
Operating profit 185 181 322
Add back/(deduct):
Movement in the valuation of the property portfolio - - 3
Net profit arising on property disposals (4) - (1)
Depreciation of property, plant and equipment 8 55 51 96
Amortisation of intangibles 2 1 3
Depreciation of right-of-use assets 9 18 19 36
Cost charged in respect of share-based payments 5 4 9
Administrative pension costs 11 2 2 4
Amendment of past service cost in relation to the defined benefit obligation - - 3
Utilisation of pension surplus for DC contributions 7 3 9
Operating cash flow before movements in working capital and pension 261 484
contributions
270
(Increase)/decrease in inventories (2) (1) 1
Decrease in trade and other receivables 2 26 16
Increase/(decrease) in trade and other payables 46 17 (17)
Decrease in provisions (1) - (3)
Pension contributions 11 (1) (1) (1)
Cash flow from operations 314 302 480
Interest payments (33) (43) (82)
Interest payments on interest rate swap (2) - (1)
Interest receipts on cross currency swap 1 3 4
Interest payments on cross currency swap (1) (2) (3)
Other interest paid - lease liabilities (11) (9) (14)
Borrowing facility fees paid - - (1)
Interest received 4 5 9
Tax paid (20) (10) (24)
Net cash from operating activities 252 246 368
Investing activities
Acquisition of Pesto Restaurants Ltd - contingent consideration (11) - -
Purchases of property, plant and equipment (115) (89) (169)
Purchases of intangible assets (2) (3) (12)
Net proceeds from sale of property, plant and equipment 1 - 1
Finance lease principal repayments received 1 1 1
Net cash used in investing activities (126) (91) (179)
Financing activities
Issue of ordinary share capital 2 1 1
Purchase of own shares (3) (2) (5)
Repayment of principal in respect of securitised debt 10 (70) (67) (134)
Principal receipts on currency swap 10 11 11 21
Principal payments on currency swap 10 (9) (8) (17)
Cash payments for the principal portion of lease liabilities (27) (23) (39)
Net cash used in financing activities (96) (88) (173)
Net increase in cash and cash equivalents 10 30 67 16
Cash and cash equivalents at the beginning of the period 10 181 164 164
Foreign exchange movements on cash - 1 1
Cash and cash equivalents at the end of the period 10 211 232 181
Cash and cash equivalents are defined in note 10.
NOTES TO THE INTERIM FINANCIAL INFORMATION
1. GENERAL INFORMATION
Basis of preparation
Mitchells & Butlers Plc (the Company) is a company domiciled in the UK.
These condensed consolidated interim financial statements (interim financial
statements) as at and for the 28 weeks ended 11 April 2026 comprise the
Company and its subsidiaries (together referred to as the Group). The Group is
primarily involved in the hospitality industry providing guests with memorable
occasions serving food and drink across a range of restaurants, pubs and bars.
This interim financial information has been prepared in accordance with
International Accounting Standard (IAS) 34 Interim Financial Reporting as
adopted within the United Kingdom and should be read in conjunction with the
Group's last annual consolidated financial statements as at 27 September 2025.
They do not include all of the information required for a complete set of
financial statements prepared in accordance with International Financial
Reporting Standards (IFRS). However, selected explanatory notes are included
to explain events and transactions that are significant to an understanding of
the changes in the Group's financial position and performance since the last
annual financial statements.
These interim financial statements were authorised for issue by the Company's
board of Directors on 20 May 2026
The information for the 52 weeks ended 27 September 2025 does not constitute
statutory accounts as defined in 5section 434 of the Companies Act 2006. A
copy of the statutory accounts for that period has been delivered to the
Registrar of Companies and has been prepared in accordance with IFRS as
adopted within the United Kingdom. The auditor's report on those accounts
was not qualified and did not contain statements under section 498(2) or (3)
of the Companies Act 2006.
This interim financial information has not been audited or reviewed by the
auditor under the International Standard on Review Engagements (UK) 2410.
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 cashflows throughout the going concern period, being 12 months
from the date of signing of these financial statements.
The Group has two main sources of funding. Namely, a secured debt financing
structure and a £150m unsecured revolving credit facility due to expire in
July 2028.
Within the secured debt 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 11th April 2026 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 a four quarter basis with a minimum level
of 1.1 times.
The unsecured facility includes financial covenants relating to 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) based on the performance of the
unsecured estate, tested at each Half Year and Full Year date. Unsecured
facilities expire in July 2028, beyond the going concern assessment period.
In the year ahead the main uncertainties are considered to be the continuation
of growth in sales and the rate of cost inflation. The Directors believe that,
subject in particular to global political uncertainties, there are signs of an
improving trend in the rate of overall cost inflation facing the Group in the
next financial year. The outlook overall however remains uncertain and will
depend on a number of factors including consumer spending power and
confidence, global political developments, supply chain disruptions and
government policy.
1. GENERAL INFORMATION (CONTINUED)
Going concern (continued)
The Directors have reviewed the financing arrangements against a forward
trading forecast in which they have considered the Group's current financial
position. This forecast assumes further growth in sales but recognises the
impact of increasing cost pressure, notably in labour, food and utility costs,
which the Group will expect to have some success in mitigating. Under this
scenario the Group is able to stay within all committed facility financial
covenants, with good levels of headroom, and maintains sufficient liquidity
throughout.
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 in which some, but limited, further mitigation activity is
taken. In this downside scenario the Group also retains sufficient liquidity
throughout the period, and no covenants are breached with reasonable headroom
maintained throughout the review period.
After due consideration of these factors, the Directors believe that they have
a reasonable expectation that the Group has sufficient resources to continue
in operational existence for the 12 months from the date of approval of these
condensed financial statements, and therefore continue to adopt the going
concern assumption in their preparation.
Accounting policies
The interim financial information has been prepared on a consistent basis
using the accounting policies set out in the Annual Report and Accounts 2025.
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 reviewed 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. Details of the Group's critical accounting judgements
and estimates are described within the relevant accounting policies set out in
the Annual Report and Accounts 2025. Judgements and estimates for the interim
period remain unchanged.
2. SEGMENTAL ANALYSIS
The Group trades in one business segment (that of operating pubs, bars and
restaurants). The Group's brands meet the aggregation criteria set out in
paragraph 12 of IFRS 8 Operating Segments and as such the Group reports the
business as one reportable segment.
3. REVENUE
Revenue is analysed as follows: 2026 2025 2025
28 weeks 28 weeks 52 weeks
£m £m £m
Food 809 782 1,440
Drink 630 621 1,172
Services 51 51 99
Total 1,490 1,454 2,711
Revenue from services includes rent receivable from unlicensed properties and
leased operations of £5m (2025 28 weeks £5m, 2025 52 weeks £8m).
Food and drink revenue includes £16m (2025 28 weeks £14m, 2025 52 weeks
£21m) in respect of gift card redemptions, which was recorded within deferred
income at the prior period end.
4. SEPARATELY DISCLOSED ITEMS
In addition to presenting information on an IFRS basis, the Group also
presents adjusted profit and earnings per share information that excludes
separately disclosed items and the impact of any associated tax. Adjusted
profitability 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 a more effective
comparison of the Group's trading performance from one period to the next.
Adjusted profit and earnings per share information is used by management to
monitor business performance against both shorter-term budgets and forecasts
but also against the Group's longer-term strategic plans.
Judgement is used to determine those items which should be separately
disclosed. This judgement includes assessment of whether an item is of
sufficient size or of a nature that is not consistent with normal trading
activities.
2026 2025 2025
28 weeks 28 weeks 52 weeks
Notes £m £m £m
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 4 - 1
Movement in the valuation of the property portfolio:
- Impairment credit arising from the revaluation of freehold and long c - -
leasehold properties
11
- Impairment of short leasehold and unlicensed properties d - - (5)
- Impairment of right-of-use assets e - - (8)
- Impairment of goodwill f - - (1)
Net movement in the valuation of the property portfolio - - (3)
Total separately disclosed items before tax 4 - (8)
Tax relating to the above items (1) - 1
Total separately disclosed items after tax 3 - (7)
Separately disclosed items are as follows:
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.
d. Impairment of short leasehold and unlicensed properties where their carrying
values exceed their recoverable amounts, net of reversals of past impairments.
4. SEPARATELY DISCLOSED ITEMS (CONTINUED)
e. Impairment of right-of-use assets where their carrying values exceeded their
recoverable amounts, net of reversals of past impairments.
f. Impairment of goodwill where the carrying value exceeded the recoverable
amount.
5. FINANCE COSTS AND INCOME
2026 2025 2025
28 weeks 28 weeks 52 weeks
£m £m £m
Finance costs
Interest on securitised debt (36) (40) (72)
Interest on other borrowings (4) (6) (11)
Interest on lease liabilities (9) (9) (17)
Total finance costs (49) (55) (100)
Finance income
Interest receivable on cash balances 4 5 9
Net pensions finance income (note 11) 3 3 7
6. TAXATION
The taxation charge for the 28 weeks ended 11 April 2026 has been calculated
by applying an estimate of the annual effective tax rate before separately
disclosed items of 25.2% (2025 28 weeks, 25.7%). The annual effective rate is
slightly above the UK statutory rate of 25% largely due to profits arising and
taxed in Germany, which has a higher statutory tax rate.
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 were effective for the
Group in the prior period. The Group has assessed that no material top-up
taxes will arise.
2026 2025 2025
28 weeks 28 weeks 52 weeks
Tax charge in the income statement £m £m £m
Current tax:
- Corporation tax (25) (11) (22)
Total current tax charge (25) (11) (22)
Deferred tax:
- Origination and reversal of temporary differences (11) (23) (40)
- Amounts under-provided in prior periods - - 1
Total deferred tax charge (11) (23) (39)
Total tax charge in the income statement (36) (34) (61)
Further analysed as tax relating to:
Profit before separately disclosed items (35) (34) (62)
Separately disclosed items (1) - 1
(36) (34) (61)
6. TAXATION (CONTINUED)
2026 2025 2025
Tax relating to items recognised in other comprehensive 28 weeks 28 weeks 52 weeks
Income £m £m £m
Deferred tax:
Items that will not be reclassified subsequently to profit or loss:
- Unrealised gains due to revaluations - revaluation reserve - - (22)
- Unrealised gains due to revaluations - Retained Earnings - - 5
- Remeasurement of pension liabilities - 4 4
- 4 (13)
Items that may be reclassified subsequently to profit or loss:
- Cash flow hedges (1) (4) (4)
Total tax charge recognised in other comprehensive income (1) - (17)
7. EARNINGS PER SHARE
Basic earnings per share (EPS) has been calculated by dividing the profit for
the financial 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 4) in order to allow a better understanding of the
adjusted trading performance of the Group.
The profit used for the earnings per share calculations is as follows:
2026 2025 2025
28 weeks 28 weeks 52 weeks
£m £m £m
Profit for the period 107 100 177
Separately disclosed items net of tax (3) - 7
Adjusted profit for the period 104 100 184
The number of shares used for the earnings per share calculations are as
follows:
2026 2025 2025
28 weeks 28 weeks 52 weeks
million million million
Basic weighted average number of ordinary shares 597 595 595
Effect of dilutive potential ordinary shares:
- Contingently issuable shares 4 4 5
- Other share options 1 1 1
Diluted weighted average number of shares 602 600 601
7. EARNINGS PER SHARE (CONTINUED)
At 11 April 2026, 3,130,166 (2025 28 weeks 4,152,712, 2025 52 weeks 2,949,881)
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. Outstanding options can only be
dilutive, and therefore included in the diluted EPS calculation, when the
average share price during the period exceeds the exercise price of the
options.
2026 2025 2025
28 weeks 28 weeks 52 weeks
pence pence pence
Basic earnings per share
Basic earnings per share 17.9 16.8 29.7
Separately disclosed items net of tax per share (0.5) - 1.2
Adjusted basic earnings per share 17.4 16.8 30.9
Diluted earnings per share
Diluted earnings per share 17.8 16.7 29.5
Adjusted diluted earnings per share 17.3 16.7 30.6
8. PROPERTY, PLANT AND EQUIPMENT
2026 2025 2025
11 April 12 April 27 September
Net book value £m £m £m
At beginning of period 4,591 4,419 4,419
Additions 110 84 177
Disposals (1) (2) (4)
Net increase from property revaluation - - 99
Net impairment of short leasehold properties - - (5)
Depreciation provided during the period (55) (51) (96)
Foreign currency movements - 1 1
At end of period 4,645 4,451 4,591
Revaluation and impairment
The freehold and long leasehold licensed properties were valued at market
value as at 27 September 2025, using information provided by CBRE, independent
Chartered Surveyors. This valuation was based on an assessment of individual
asset fair maintainable trade (FMT) and property multiples. The Group has
performed an assessment for material changes that would impact the value of
its freehold and long leasehold properties at the interim date. The Group's
profit performance is in line with forecast supporting the fair maintainable
trade assessed at 27 September 2025 and the property multiples adopted at 27
September 2025 are supported by the current property market. As such there
is no requirement to perform a revaluation at the interim date.
Short leasehold properties, unlicensed properties and fixtures, fittings and
equipment are held at cost less depreciation and impairment provisions. During
the current period, in accordance with IAS 36, the Group has performed an
assessment for indicators of impairment of these categories of property, plant
and equipment, together with right-of-use assets (note 9). This review
included an assessment that current year performance is in line with the
overall Group forecast used in the impairment review at 27 September 2025, and
estimates of long term growth rates and capital maintenance from the year end
remain appropriate. In addition, our sensitivity analysis at FY25 year end
showed that the impairment charge was relatively insensitive to likely
movements in the discount rate (pre-tax WACC) of 11.3%. As such, there are not
considered to be any indicators of impairment that would require the Group to
perform a further review of impairment.
As a result of the above review, no revaluation or impairment has been
recognised in the period (2025 28 weeks £nil, 2025 52 weeks revaluation
increase of £99m and short leasehold properties net impairment of £5m).
8. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Goodwill and other intangible assets
Goodwill and other intangible assets at 11 April 2026 of £28m (12 April 2025
£21m, 27 September 2025 £28m) comprise goodwill of £6m (12 April 2025
£7m, 27 September 2025 £6m), brands of £6m (12 April 2025 £6m, 27
September 2025 £6m) and computer software of £16m (12 April 2025 £8m, 27
September 2024 £16m).
Capital commitments
The total amount contracted for but not provided in the financial statements
was £24m (12 April 2025 £20m, 27 September 2025 £25m).
9. LEASES
Right-of-use assets
2026 2025 2025
11 April 12 April 27 September
Net book value £m £m £m
At start of period 291 307 307
Additions 6 14 29
Impairment - - (8)
Disposals(a) (3) (2) (3)
Depreciation provided during the period (18) (19) (36)
Foreign currency movements - 2 2
At end of period 276 302 291
a. Disposals mainly relate to leasehold properties where the freehold
has been purchased, and therefore, the right-of-use assets and corresponding
lease liabilities (see note 10) have been disposed. The freehold purchases
are reflected in property, plant and equipment additions (see note 8).
Impairment review of right-of-use assets
As described in note 8, the Group has reviewed its short leasehold properties
and right-of-use assets for indicators of impairment at the interim date, and
determined that there are no indicators that lead the Group to conclude that a
further review of impairment is required.
Lease liabilities
An analysis of lease liabilities recognised are as follows:
11 April 12 April 27 September
2026 2025 2025
£m £m £m
Current liabilities 37 42 42
Non current liabilities 368 396 392
Total lease liabilities 405 438 434
10. BORROWINGS AND NET DEBT
Borrowings
11 April 12 April 27 September
2026 2025 2025
£m £m £m
Current
Securitised debt 141 134 137
Unsecured revolving credit facilities - (1) -
Overdraft 29 21 35
Short term financing of employee advances 2 2 2
Total current 172 156 174
Non-current
Securitised debt 828 976 900
Total borrowings 1,000 1,132 1,074
Net debt
11 April 12 April 27 September
2026 2025 2025
£m £m £m
Cash and cash equivalents 240 253 216
Overdraft (29) (21) (35)
Cash and cash equivalents as presented in the cashflow statement(a) 211 232 181
Securitised debt (969) (1,110) (1,037)
Unsecured revolving credit facility - 1 -
Derivatives hedging balance sheet debt(b) 13 19 15
Short term financing of employee advances(c) (2) (2) (2)
Net debt excluding leases (747) (860) (843)
Lease liabilities (405) (438) (434)
Net debt including leases (1,152) (1,298) (1,277)
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 dollar denominated A3N loan notes. This amount
is disclosed separately to remove the impact of exchange rate movements which
are included in the securitised debt amount.
c Advances to employees is a borrowing from Wagestream.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and other
short-term highly liquid deposits with an original maturity at acquisition of
three months or less. Cash held on deposit with an original maturity at
acquisition of more than three months is disclosed as other cash deposits. In
the cash flow statement, cash and cash equivalents are shown net of bank
overdrafts that are repayable on demand and form an integral part of the
Group's cash management.
10. BORROWINGS AND NET DEBT (CONTINUED)
Net debt
Net debt comprises cash and cash equivalents, cash deposits net of borrowings
and discounted lease liabilities. Net debt is presented on a constant currency
basis, due to the inclusion of the fixed exchange rate component of the cross
currency swap. Cash flows on the interest rate and cross currency swaps are
shown within interest paid in the Group cash flow statement.
Securitised debt
On 13 November 2003, the Group refinanced its debt by raising £1,900m through
a securitisation of the majority of its UK pubs and restaurants owned by
Mitchells & Butlers Retail Limited. On 15 September 2006 the Group
completed a further debt ('tap') issue to borrow an additional £655m and
refinance £450m of existing debt at lower cost. The notes are secured on
the majority of the Group's property and future income streams therefrom. All
of the floating rate notes are hedged using interest rate swaps which fix the
interest rate payable.
The overall cash interest rate payable on the loan notes is 6.2% (12 April
2025 6.3%, 27 September 2025 6.3%) after taking account of interest rate
hedging and the cost of the financial guarantee provided by Ambac Assurance UK
Limited (Ambac). Ambac acts as a guarantor of the Group's obligations to
repay interest and principal on the loan notes. In the event that the Group
is unable to pay such amounts the guarantee is limited to the Class A1N, A3N,
A4 and Class AB note holders only.
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.
At 11 April 2026, Mitchells & Butlers Retail Limited had cash and cash
equivalents of £97m (12 April 2025 £113m, 27 September 2025 £77m). Of
this amount £3m (12 April 2025 £2m, 27 September 2025 £1m), representing
disposal proceeds, was held on deposit in an account over which there are a
number of restrictions. The use of this cash requires the approval of the
securitisation trustee and may only be used for certain specified purposes
such as capital enhancement expenditure and business acquisitions.
The carrying value of the securitised debt in the Group balance sheet is
analysed as follows:
11 April 12 April 27 September
2026 2025 2025
£m £m £m
Principal outstanding at beginning of period 1,036 1,170 1,170
Principal repaid during the period (70) (67) (134)
Net principal receipts on cross currency swap 2 3 4
Exchange on translation of dollar loan notes (2) - (4)
Principal outstanding at end of period 966 1,106 1,036
Deferred issue costs (1) (1) (1)
Accrued interest 4 5 2
Carrying value at end of period 969 1,110 1,037
Liquidity facility
Under the terms of the securitisation, the Group holds a liquidity facility of
£295m provided by two counterparties. The amount drawn at 11 April 2026 is
£nil (12 April 2025 £nil, 27 September 2025 £nil).
Unsecured revolving credit facility
The Group holds an unsecured committed revolving credit facility of £150m,
which expires on 22 July 2028. The amount drawn at 11 April 2026 is £nil (12
April 2025 is £nil, 27 September 2025 £nil).
10. BORROWINGS AND NET DEBT (CONTINUED)
Movement in net debt excluding leases
2026 2025 2025
28 weeks 28 weeks 52 weeks
£m £m £m
Net increase in cash and cash equivalents 30 67 16
Add back cash flows in respect of other components of net debt:
- Repayment of principal in respect of securitised debt 70 67 134
- Principal receipts on cross currency swap (11) (11) (21)
- Principal payments on cross currency swap 9 8 17
Decrease in net debt arising from cash flows 98 131 146
Movement in capitalised debt issue costs net of accrued interest (2) (3) (1)
Decrease in net debt excluding leases 96 128 145
Opening net debt excluding leases (843) (989) (989)
Foreign exchange movements on cash - 1 1
Closing net debt excluding leases (747) (860) (843)
Movement in lease liabilities
2026 2025 2025
28 weeks £m 28 weeks 52 weeks
£m £m
Opening lease liabilities (434) (447) (447)
Additions(a) (6) (14) (26)
Interest charged during the period (9) (9) (17)
Repayment of principal 27 23 39
Payment of interest 11 9 14
Disposals(b) 6 2 5
Foreign currency movements - (2) (2)
Closing lease liabilities (405) (438) (434)
a Additions to lease liabilities include new leases and lease extensions or rent
reviews relating to existing leases.
b Disposals mainly relate to leasehold properties where the freehold has been
purchased, and therefore, the right-of-use assets (see note 9) and
corresponding lease liabilities have been disposed.
11. PENSIONS
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
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.
In addition, Mitchells & Butlers plc also provides a workplace pension
plan in line with the Workplace Pensions Reform Regulations. This
automatically enrols all eligible workers into a Qualifying Workplace Pension
Plan.
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.
Net reserves as at 11 April 2026 of £39m (12 April 2025 £40m, 27 September
2025 £39m) have been included within the MABPP balance sheet, that cover the
estimated additional costs for refinement of the benefit entitlements of the
MABPP members and are subject to the finalisation of a data cleanse project
that is ongoing at the balance sheet date. 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;
- £24m as an additional liability arising from GMP
equalisation, the majority of which will be secured with the insurer when the
buy-in is finalised.
MABPP - recognition of actuarial surplus
Following the MABPP buy-in, during FY24, 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, which will continue to remain
active for the foreseeable future. As such the full value of the surplus was
recognised as it was expected to be an economic benefit to the Company. This
continues to apply. During the period, the surplus has funded £9m (12
April 2025 £6m, 27 September 2025 £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 at 31 March 2022
and updated by the schemes' independent qualified actuaries to 11 April 2026.
Schemes' assets are stated at market value at 11 April 2025 and the
liabilities of the schemes 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 used at the balance sheet date have been
updated to reflect changes in market conditions in the period. The key
assumptions used at the balance sheet date are discount rate of 6.0% (12 April
2025 6.0%, 27 September 2025 5.9%); pensions increases (RPI max 5%) of 3.1%
(12 April 2025 3.0%, 27 September 2025 3.0%); and inflation (RPI) of 3.3% (12
April 2025 3.1%, 27 September 2025 3.1%). The mortality assumptions remain
unchanged from the last financial year end.
Amounts recognised in respect of pension schemes
The net pension surplus is presented in the Group balance sheet as follows.
Group balance sheet 2026 2025 2025
11 April 12 April 27 September
£m £m £m
Pension surplus (MABPP)(a) 123 141 132
Current pension liability (MABETUS) (1) (1) (1)
Non-current pension liability (MABETUS) (21) (21) (21)
Net actuarial surplus 101 119 110
Associated deferred tax liability (25) (30) (28)
a. The MABPP pension surplus comprises the following assets and
liabilities.
11. PENSIONS (CONTINUED)
Actuarial surplus 2026 2025 2025
11 April 12 April 27 September
£m £m £m
Fair value of scheme's assets 1,117 1,115 1,123
Present value of scheme's liabilities (1,016) (974) (1,013)
Net actuarial surplus 101 141 110
Movements in the net pension surplus are analysed as follows:
2026 2025 2025
11 April 12 April 27 September
£m £m £m
Pension surplus at beginning of period 110 139 139
Administration costs (2) (2) (4)
Past service cost - - (3)
Net pensions finance income 3 3 7
Employer contributions to MABETUS 1 1 1
Utilisation of pension surplus (9) (6) (12)
Remeasurement of pension liabilities (2) (16) (18)
Net pension surplus at end of period 101 119 110
12. FINANCIAL INSTRUMENTS
Fair value of derivative financial instruments
The table below sets out the valuation basis of financial instruments held at
fair value by the Group:
11 April 12 April 27 September 2025
2026 2025
£m £m £m
Financial assets:
Currency swaps* 13 20 15
Financial liabilities:
Interest rate swaps* (10) (17) (15)
3 3 -
* Level 2 instruments using inputs, other than quoted prices, that are
observable either directly or indirectly
The fair value of interest rate and currency swaps is the estimated amount
which the Group could expect to pay or receive on termination of the
agreements. These amounts are based on quotations from counterparties which
approximate to their fair market value and take into consideration interest
and exchange rates prevailing at the balance sheet date.
Fair value of financial assets and liabilities
Borrowings have been valued as level 1 financial instruments as the various
tranches of the securitised debt have been valued using period end quoted
offer prices. As the securitised debt is traded on an active market, the
market value represents the fair value of this debt. The current value of
the overdraft represents its fair value. The carrying value and fair value of
borrowings is as follows:
11 April 12 April 27 September
2026 2025 2025
Carrying value Fair value £m Carrying value Fair value £m Carrying value Fair value £m
£m £m £m
Borrowings (note 10) (1,000) (951) (1,132) (1,069) (1,074) (1,038)
12. FINANCIAL INSTRUMENTS (CONTINUED)
All other financial assets and liabilities are either short-term in nature or
their book values approximate to fair values.
13. RELATED PARTY TRANSACTIONS
On 4 December 2025, the Group disposed of its 25% shareholding in Fatboy Pub
Company Limited for £314,000. As a result, Fatboy Pub Company Limited is no
longer an associate company of the Group.
The Group has entered into the following transactions with the associate.
For the current period transactions are disclosed up to the point of disposal.
2026 2025 2025
28 weeks 28 weeks 52 weeks
£000 £000 £000
Rent charged 20 61 122
Sales of goods and services 10 11 13
30 72 135
During the period, Fatboy Pub Company Limited repaid a receivable balance of
£173,000. The balance due from Fatboy Pub Company at 11 April 2026 was £nil
(12 April 2025 £nil, 27 September 2025 £nil), net of a provision of £nil
(12 April 2025 £179,000, 27 September 2025 £173,000).
During a prior period, Mitchells & Butlers Retail Limited entered an
option arrangement with Tottenham Hotspur Football Co Limited (THFC), a
related party, to sell the company's leasehold interest in a trading site.
THFC paid an agreed amount to the company under the option agreement. Should
the option under the option agreement be exercised, THFC would pay a further
amount to acquire the site at the fair market value at the time the option
agreement was entered into.
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 condensed income statement with details of separately disclosed items
provided in note 4.
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 condensed income statement
in the valuation of the property portfolio.
Adjusted EBITDA Annualised EBITDA on a 52-week basis before separately disclosed items is used Group condensed income statement
to calculate net debt to EBITDA.
Operating profit Earnings before interest and tax. Group condensed income statement
Adjusted operating profit Operating profit before separately disclosed items. Group condensed income statement
Like-for-like sales growth Like-for-like sales growth reflects the sales performance against the Group condensed income statement
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 7
Net debt Net debt comprises cash and cash equivalents, cash deposits net of borrowings Note 10
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 Note 10
compared against 52-week EBITDA before separately disclosed items, which is a
widely used leverage measure in the industry.
Group condensed income statement
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 better insight
into the trading performance than total revenue which is impacted by
acquisitions and disposals.
2026 2025 Year-on-year
28 weeks 28 weeks
Source £m £m %
Reported revenue Condensed income statement 1,490.0 1,454.0 2.5%
Less non like-for-like sales and income (121.0) (129.0)
Like-for-like sales 1,369.0 1,325.0 3.3%
Drink sales
2026 2025 Year-on-year
28 weeks 28 weeks
Source £m £m %
Reported drink revenue Note 3 630.0 621.0 1.4%
Less non like-for-like drink sales (45.9) (50.5)
Drink like-for-like sales 584.1 570.5 2.4%
Food sales
2026 2025 Year-on-year
28 weeks 28 weeks
Source £m £m %
Reported food revenue Note 3 809.0 782.0 3.5%
Less non like-for-like food sales (67.6) (70.1)
Food like-for-like sales 741.4 711.9 4.1%
Other sales
2026 2025 Year-on-year
28 weeks 28 weeks
Source £m £m %
Reported other revenue Note 3 51.0 51.0 - %
Less non like-for-like other sales (7.9) (8.8)
Other like-for-like sales 43.1 42.2 2.1%
B. Adjusted operating profit
Operating profit before separately disclosed items as set out in the Group
Condensed Income Statement. 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.
2026 2025 Year-on
28 weeks 28 weeks -year
Source £m £m %
Operating profit Condensed income statement 185 181 2.2%
Separately disclosed items Note 4 -4 -
Adjusted operating profit 181 181 -%
Reported revenue Condensed income statement 1,490 1,454 2.5%
Adjusted operating margin 12.1% 12.4% 0.3bps
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.
2026 2025 Year-on
28 weeks 28 weeks -year
Source £m £m %
Profit for the period Condensed income statement 107 100 7.0%
Add back separately disclosed items Note 4 -3 -
Adjusted profit 104 100 4.0%
Basic weighted average number of shares Note 7 597 595
Adjusted earnings per share 17.4p 16.8p 3.7%
D. Net Debt: Adjusted EBITDA
The multiple of net debt as per the balance sheet compared against 52-week
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.
2026 2025
28 weeks 28 weeks
Source £m £m
Net debt Note 10 1,152 1,298
Adjusted EBITDA H1 Group condensed income statement 213 252
Adjusted EBITDA prior year H2 256 209
Adjusted 52-week EBITDA 569 461
2.5 2.8
Net debt : Adjusted EBITDA
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR BRGDUUUDDGLG
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Mitchells & Butlers
See all newsREG - Mitchells & Butlers - HALF YEAR RESULTS
AnnouncementREG - Mitchells & Butlers - Notice of Half Year Results
AnnouncementREG - Mitchells & Butlers - Admission to Trading
AnnouncementREG - Mitchells & Butlers - Total Voting Rights
AnnouncementREG - Mitchells & Butlers - Director/PDMR Shareholding
Announcement