Business
Third Quarter Interim Management Statement
Third Quarter Interim Management Statement.
About this update from Mitchells & Butlers Plc
[{"type":"text","content":"\n \nRNS Number : 1702N Mitchells & Butlers PLC 24 July 2014 \n\n \n24 July 2014 \n \nMitchells & Butlers plc\nThird Quarter Interim Management Statement\n \n \nOperating performance\n \nTotal sales growth in the third quarter was 3.8%, bringing growth in the first 42 weeks to 2.9%.\n \nOver the third quarter like-for-like food volumes continued to increase, although sales remained flat as we held prices and saw a decrease in food spend per head. This reflected a weak eating and drinking out market1 in the UK during May and June, exacerbated for restaurants by the impact of the football World Cup. In the last few weeks we have seen an improvement in demand, particularly for food, from these levels. Operating margins are slightly below last year. \n \n\n\n\n\nLike-for-like sales\n\n\nH1 2014\n\n\nQ3 2014\n\n\nTrading to IMS\n\n\n\n\n\n\n\n28 weeks to\n12 April 2014\n \n\n\n14 weeks to\n19 July 2014\n\n\n42 weeks to\n19 July 2014\n\n\n\n\nTotal\n\n\n1.1%\n\n\n0.0%\n\n\n0.7%\n\n\n\n\nFood\n\n\n0.9%\n\n\n0.6%\n\n\n0.8%\n\n\n\n\nDrink\n\n\n1.3%\n\n\n-0.5%\n\n\n0.6%\n\n\n\n\n \nAcquisition of the majority of the Orchid Group\n \nWe successfully acquired 173 outlets from the Orchid Group ('Orchid') on 15 June 2014 and their results are included within total sales for the five weeks following this date. The acquisition is in line with our strategy to focus on long-term growth in the eating-out market and provides significant opportunity for sales and margin growth through both the conversion of selected sites to Mitchells & Butlers brands, and through cost synergies from the combination of support functions.\n \nIntegration is progressing well and we remain confident that the acquisition will be immediately enhancing to adjusted earnings2.\n \nCash flow and balance sheet\n \nSince the date of the half year financial statements (12 April 2014), there have been two significant balance sheet movements, both of which have been previously announced. \n \nFirstly, we reached agreement on the triennial valuation of the group pension schemes as at 31 March 2013, including a funding shortfall of £572m and a revised schedule of contributions. As a result net balance sheet pension liabilities under IAS 19 (revised) have increased by c£20...