Coronavirus has seen Mitchells & Butlers (MAB) tumble to a half year loss, after the group took a £148m charge that was largely attributable to the downward revaluation of its estate. The pub and restaurant operator’s interim results include nearly four weeks of enforced closure. Mitchells recorded a further £11m write-down linked to the disposal and donation of food, while the value of its property portfolio has dropped by £524m.
Mitchells will open the majority of its sites this month, and expects sales to take nine months to recover to last year’s levels - sales grew by 0.9 per cent on a like-for-like basis in the 24 weeks before the pandemic took hold. The cash position was aided by a £150m drawdown from its revolving credit facility, though operating cash flow meanwhile fell 41 per cent to £136m, with the group recording a £34m working capital outflow.
Peel Hunt forecasts adjusted FY2020 pre-tax profits and earnings per share of £4.1m and 0.8p respectively, rising to £102m and 19.2p in its following financial year.
| MITCHELLS & BUTLERS (MAB) | ||||
| ORD PRICE: | 194p | MARKET VALUE: | £ 833m | |
| TOUCH: | 193-195p | 12-MONTH HIGH: | 483p | LOW: 92p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 345p | NET DEBT: | £2.16bn* | |
| Half-year to 11 Apr | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 1.19 | 75.0 | 14.3 | nil |
| 2020 | 1.04 | -121 | -25.0 | nil |
| % change | -12 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes lease liabilities of £543m | ||||
