You are here

Prices & Quotes - UK Markets - Mitchells & Butlers (MAB)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 310.80p
Change Today:
-21.40p
Market Cap:
1,853.43m
Sector:
Travel & Leisure

Mitchells & Butlers sales slump as group launches 351m placing

By Frank Prenesti

Date: Monday 22 Feb 2021

LONDON (ShareCast) - (Sharecast News) - Pub group Mitchells & Butlers said sales had plunged almost 70% amid tighter Covid-19 curbs as it launched a 351m placing to shield its balance sheet from the coronavirus pandemic.
The Harvester owner on Monday said total managed sales from September 27 to January 16 had slumped 69.8% year on year, while cash burn was up to 35m a month since the start of the year. All of its sites have been closed since the end of 2020 as the government tightened restrictions over Christmas and then implemented a full national lockdown.

It added that agreement has been reached with pension trustees to delay monthly contributions from January to March 2021, inclusive, with these becoming due in April 2021.

The group said its cash positions had "deteriorated significantly" during the pandemic and the fundraising was "critical for the continued operation of the group and its immediate financial stability". The extra cash will be used to pay off debt and invest in its pubs and restaurants to help it stay competitive as Covid restrictions are eased.

Mitchells & Butlers also has debt servicing costs of 51m a quarter, while all non-essential capital expenditure continues to be suspended. The group had 113m in cash at January 16 with all lending facilities drawn.

The company, which owns the All Bar One and O'Neills pub chains, last week revealed that three major shareholders had combined to control 55% of the pub giant.

Piedmont, Elpida and Smoothfield consolidated their holdings under a newly incorporated holding company Odyzean, which has committed to take up its full entitlement under the open offer.

Currency trader Joe Lewis owns Piedmont, while the Irish billionaires and horse racing tycoons John Magnier and JP McManus control Elpida. Another forex trader, Derrick Smith, runs Smoothfield. The group is known collectively as "Sandy Lane set", after the expensive Barbados hotel they liked to frequent.

The company, which has seen sales battered by the Covid-19 pandemic, said it will issue around 167m new shares at 210p a share - a 36% discount to the closing price on February 12.

It has also reached agreement with banks for a new 150m three-year year unsecured revolving credit facility to bolster its balance sheet.

"The hospitality industry has done everything that has been asked of it to date and, now that the vaccines are being rolled out and infections are dropping, we are hopeful that pubs and restaurants will soon be allowed to reopen safely," said chief executive Phil Urban.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

MAB Market Data

Currency UK Pounds
Price 310.80p
Change Today -21.40p
52 Week High 337.50p
52 Week Low 107.34p
Volume 976,440
Shares Issued 596.34m
Market Cap 1,853.43m
Beta 0.02

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. full market star
  2. full market star
  3. full market star
  4. half market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. half sector star
  4. empty sector
  5. empty sector
Price Trend
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. full sector star
  5. empty sector
Income
Not Available
Growth
market
  1. full market star
  2. half market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. half sector star
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. full market star
  3. full market star
  4. full market star
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. half sector star
  5. empty sector
P/E
Not Available
PEG
market
  1. full market star
  2. full market star
  3. full market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Dividend Yield
Not Available
EPS Growth
Not Available
Operating Margin
market
  1. full market star
  2. full market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. empty sector
  5. empty sector

What The Brokers Say

Strong Buy 6
Buy 0
Neutral 3
Sell 0
Strong Sell 1
Total 10
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MAB Dividends

  Latest Previous
  Final Interim
Ex-Div 14-Dec-17 25-May-17
Paid 06-Feb-18 03-Jul-17
Amount 5.00p 2.50p

Trades for 11-May-2021

Time Volume / Share Price
16:35 188,537 @ 310.80p
16:30 1,000 @ 311.99p
16:29 22 @ 311.40p
16:29 12 @ 311.40p
16:29 174 @ 311.40p

MAB Key Personnel

Finance Director Timothy (Tim) Charles Jones
CEO Phil Urban