BIRMINGHAM pub operator Mitchells & Butlers has announced a like-for-like sales growth of 2% in the 51 weeks to September 18.
For the retained estate, like-for-like sales increased by 2.8%.
Retail sales rose by 0.7% (this excludes £7m of SCPD sales).
The group said it expected its retail operating margins to be approximately 16.5%, 1.2% points higher than last year.
In the nine-week period to September 18, like-for-like sales increased by 3.6%.
Like-for-like sales for the retained business grew by 4.4%.
In the retained business, like-for-like food sales rose by 7.1% and drink by 2.2%.
In addition to the £500m generated from major disposals, the company has sold or exchanged contracts on £54m of disposals, mainly from the sale of 44 individual pubs, at an average EBITDA multiple of over 15x.
Net debt will be approximately £2.3bn at the year end. This excludes proceeds from the sale of 333 non-core pubs which are expected in November.
Drawings on the medium term unsecured facility are currently around £260m, prior to the reduction in respect of proceeds from major disposals.
Capital expenditure in the current year is expected to be around £131m with approximately £20m spent on expansionary projects, including 54 conversions within the existing estate.
EBITDA returns on the conversions opened over the last two years continue to be above 25%.
The single site and small package acquisition pipeline for next year is increasing. Inclusive of the recently announced Ha Ha Bar & Grill acquisition, M&B has exchanged contracts on 35 sites and has a further 10 sites with heads of terms agreed.
The group is planning to invest approximately £200m of capital next year on single site and small package acquisitions, maintenance and conversions.
Adam Fowle, chief executive, said: “This is a very encouraging performance, particularly given the present consumer economy, and underlines the strength of the Mitchells & Butlers business. I am pleased at the speed of delivery on our strategic plan.”
Mitchells & Butlers will announce Final Results for the year ending September 25, 2010 on November 23.
