Mitchells & Butlers PLC First Quarter Trading Update (8428K)
January 07 2021 - 1:00AM
UK Regulatory
TIDMMAB
RNS Number : 8428K
Mitchells & Butlers PLC
07 January 2021
7 January 2021
Mitchells & Butlers plc
LEI no. 213800JHYNDNB1NS2W10
First Quarter Trading Update
Trading statement covering the 14 weeks ended 2 January
2021.
Operating performance
Since the announcement of our Preliminary results on 26 November
2020 we have emerged from the second national shutdown, the new
regional tier system was introduced and now we have entered a third
national shutdown. Over the period, progressively tighter
restrictions were imposed through December both across the UK and
in Germany resulting in an ever smaller number of sites open and
significantly reduced sales activity being possible through the
important festive trading season.
Since the UK government announcement reallocating regions in
England between tiers, on 30(th) December 2020, we have had no
sites open.
Across the whole of the first quarter total sales were 67.1%
below prior year. On a like-for-like basis (for sites when open,
excluding periods of closure) trading has been 30.1% down on prior
year across this period.
Throughout, we have again reduced discretionary capital
expenditure and operating costs to a minimum.
Cash and Balance Sheet
The group currently has cash balances on hand of GBP125m, with
all facilities drawn. With no sites trading, ongoing monthly cash
burn has returned to the level previously disclosed in relation to
the last shutdown, at approximately GBP35m to GBP40m before payment
of debt service (representing interest and amortisation) of GBP50m
per quarter. The next quarter payment date for debt service is 15
March 2021.
We welcome recent positive news on vaccine approval and roll-out
but the future facing the hospitality sector remains extremely
uncertain. It is not possible to estimate with any confidence what
restrictions on our ability to trade lie ahead of us and for how
long. As a result, the directors believe it is prudent to explore
an equity capital raise, to give the group increased financial and
operational flexibility. No decision has yet been made with regards
to the timing, size, or terms of any such equity capital raise.
The Board, which includes representatives of the major
shareholders, is unanimous in its support for these actions being
taken.
Phil Urban, Chief Executive, commented:
"We are now in a third national lockdown. I am consistently
impressed by the resilience and energy of our teams as we
repeatedly open and close businesses that we have invested in to
make Covid secure and urge the government to better understand the
huge impact these restrictions are having on the hospitality
sector. The Job Retention Scheme is temporarily protecting some
employment but there is a real and pressing need for support for
businesses themselves if we are to return to being the vibrant
sector and important employers that we were.
Mitchells & Butlers was a high performing business going
into the pandemic and with the support of our main stakeholders I
have every confidence that we can emerge in a strong competitive
position once the current restrictions on us are lifted."
For further information, please contact:
Tim Jones - Chief Financial Officer +44 (0)121 498 6112
Amy de Marsac - Investor Relations +44 (0)121 498 6514
James Murgatroyd (Finsbury) +44 (0)20 7251 3801
Note for editors:
Mitchells & Butlers is a leading operator of managed restaurants
and pubs. Its portfolio of brands and formats includes Harvester,
Toby Carvery, All Bar One, Miller & Carter, Premium Country
Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle,
Nicholson's, O'Neill's and Ember Inns. In addition, it operates
Innkeeper's Collection hotels in the UK and Alex restaurants
and bars in Germany. Further details are available at www.mbplc.com
and supporting photography can be downloaded at www.mbplc.com/imagelibrary
.
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