Last checked at 12 May 2010 07:00
FOR IMMEDIATE RELEASE
12 May 2010
MWB GROUP HOLDINGS Plc:
INTERIM MANAGEMENT STATEMENT
MWB Group Holdings Plc ("the Group"), the boutique hotel owner and operator, serviced offices operator, and retailer, today reports that during the period from 1 January 2010 to 12 May 2010 its three operating businesses have continued to make progress despite uncertainties in their respective markets.
Trading at the Group's boutique hotel business, Malmaison and Hotel du Vin, performed in line with expectations in the first quarter, achieving its budgeted EBITDA despite January revenues being severely affected by the adverse weather conditions across the country. While revenue generation remained challenging, Malmaison and Hotel du Vin delivered year on year rate growth which, combined with strong cost control, delivered the budgeted profit for the quarter.
The start of the second quarter was adversely affected by the unprecedented standstill in air travel throughout the UK and much of Northern Europe. However, the outlook for the remainder of the quarter remains positive.
The average room rate for Hotel du Vin during April 2010 was £112, compared to £111 for the year ended 31 December 2009, while Malmaison average room rate was £101 in April 2010, up from £99 for the year ended 31 December 2009.
AIM-quoted MWB Business Exchange Plc ("Business Exchange"), Central London's largest provider of flexible office space, has continued to see signs of recovery in terms of rate stability and occupancy growth. Over the first four months of 2010, demand from the corporate market has improved, especially in the City where occupancy remains strong. Business Exchange's new centres in Paddington and Knightsbridge, traditionally areas undersupplied with high quality serviced offices, will become fully operational shortly. Management continues to focus on cost control and driving yield where possible. To that end a number of new technology driven products and services have been launched with a view to creating new revenue streams as well as improving still further the high levels of client retention.
Management has been rigorous in capitalising on revenue opportunities in the market. Although demand during the first four months of 2010 has remained broadly constant, Business Exchange's revenue conversion levels have improved, resulting in the volume of deals increasing, albeit for smaller workstation requirements. As a result, occupancy at the Group's leased centres (1) remained firm at similar levels to the 82% reported at 31 December 2009. Revenue per available workstation ("REVPAW") and revenue per occupied workstation ("REVPOW") have improved slightly from £6,180 and £7,545 respectively at 31 December 2009, which reflects the continued focus on yield management.
At Liberty Plc ("Liberty"), the iconic luxury brand and Regent Street emporium, which is quoted on AIM, the growth momentum has continued during the first four months of 2010. Revenue across the business is up 40%, compared to the same period in 2009, driven by growth across the key areas of the company's business, namely fabrics division, the flagship store and the internet business. Revenue for the first four months of the financial year to April 2010 totalled £26.0 million, up from £18.5 million in the comparative four months to 30 April 2009.
Since the December 2009 year-end Liberty has exchanged contracts to sell the freehold of its iconic landmark building in Great Marlborough Street, London W1 for £41.5m. Completion took place on 11 May 2010 in accordance with the circular issued to shareholders on 16 April 2010.
On 7 May 2010, Liberty announced that it had been holding discussions with BlueGem Capital Partners LLP ("BlueGem") about the possibility of BlueGem making an offer for the whole of the issued share capital of Liberty. The Offer by BlueGem (if made) would result in total payments to Liberty shareholders of £42.0 million. Of this amount, £28.7 million would be receivable by MWB, together with repayment of debt provided by MWB to Liberty of £14.7 million, resulting in a total receipt by MWB under the proposed offer of £43.4 million. A further announcement concerning this important development in the financial strength of the Group, will be made at the appropriate time.
Each of the Group's operating businesses continues to monitor expenditure carefully and has implemented cost control measures without sacrificing the high levels of service associated with the Group.
Eric Sanderson, Group Chairman, commented: "There are signs of some improvement in all our markets although we remain cautious due to the UK's current economic environment. I believe the quality of both our management teams and the products and services they provide will continue to help us perform positively in the current market conditions."
(1)Leased centres 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.
Ends.
Contact:
Richard Balfour-Lynn, Chief Executive, MWB. Tel: 020 7706 2121
Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161
07767 444 193