Last checked at 6 Nov 2009 07:00
FOR IMMEDIATE RELEASE
6 November 2009
MWB GROUP HOLDINGS Plc:
INTERIM MANAGEMENT STATEMENT
MWB Group Holdings Plc ("MWB" or "the Group"), the boutique hotel owner and operator, serviced offices operator, and retailer, today reports that during the period 1 July 2009 to 5 November 2009 its three operating businesses continue to perform in line with the Board's expectations as generally referred to in the 2009 half yearly financial report, despite the uncertain market conditions.
At 30 September 2009, the Group's net debt was £365m compared to £366m at 30 June 2009, and shareholders' funds were broadly in line with the position at 30 June 2009 of £109m.
During July and August 2009, demand at the Group's hotel businesses, Malmaison and Hotel du Vin has been broadly consistent with the first half. Since the start of September there has been a strengthening of the business across the two brands with an improvement in room rates and customer spend on food and beverage against the position at 30 June 2009. Occupancy remains strong throughout the business at 79% for the first nine months of 2009, in comparison to 80% for the same period last year.
The average room rate for Hotel du Vin during September 2009 was £112 compared to £109 for the six months ended 30 June 2009, while the Malmaison average room rate was £102 in September 2009, up from £100 for the six months ended 30 June 2009. Prospects for the remainder of the year are encouraging, as demand continues to improve and forward bookings are stronger in comparison to the first half of the year.
Trading in Malmaison and Hotel du Vin is also benefiting from last year's four new hotel openings as they further establish themselves in their respective markets.
AIM-quoted MWB Business Exchange Plc ("Business Exchange"), one of London's leading providers of serviced offices, has continued to consolidate its position in London. It has also recently signed a new Operating and Management Agreement on a 20,200 sq ft centre in Victoria, London. The new centre, to be operated under its City Executive Centre brand, will provide a further 234 workstations when it opens in December 2009.
Enquiry levels at Business Exchange in the third quarter remain encouraging despite the tough economic climate. Management continues to maintain a grip on costs and focus attention on its client acquisition and retention strategies. Occupancy at 30 September 2009 was above 80% compared to 85% at 30 June 2009, revenue per available workstation ("REVPAW") was £7,295 compared to £8,055 at 30 June 2009 and revenue per occupied workstation ("REVPOW") was £8,965 compared to £9,490 at 30 June 2009.(1)
At Liberty Plc ("Liberty"), the iconic British brand and Regent Street emporium, July sales were strong, especially in Liberty of London and Ladieswear. Trading at the flagship store during the second half of August was weaker than in the same period last year. However revenue has been stronger in September this year in comparison to last year, following the launch of the Hermès pop-up store in the scarf hall. Overall, Liberty continues to perform ahead of last year following the strong trading recorded in the six months ended 30 June 2009.
As referred to in MWB's 2009 half-yearly financial report, the Board remains mindful of the relative lack of headroom for the gearing covenant in the Group's £30m Unsecured Loan Stock. The Board has been exploring various options open to the Group with the aim of strengthening its financial structure and will provide an update on this process as appropriate.
(1) These figures all reflect occupancy, REVPAW and REVPOW at Business Exchange's leased centres. They exclude OMAs and managed centres as Business Exchange receives fees for operating such centres. These figures also exclude immature centres acquired from the administrator or landlords of various subsidiaries of the MLS group shortly before the June 2009 period end.
Eric Sanderson, Group Chairman, commented: "Our businesses continue to perform creditably in the current uncertain climate. It is too early to be certain when the upturn will arrive but I am confident we have the management teams, services and products to deliver a sound performance over the course of 2009."
Ends.
Contact:
Richard Balfour-Lynn, Chief Executive, MWB. Tel: 020 7706 2121
Andrew Blurton Joint Finance Director, MWB. Tel: 020 7706 2121
Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161
07767 444 193