Last checked at 5 Jan 2009 07:01
FOR IMMEDIATE RELEASE
5 January 2009
MWB GROUP HOLDINGS Plc:
TRADING UPDATE FOR YEAR TO 31 DECEMBER 2008
MWB Group Holdings Plc ("MWB" or "the Group"), the hotels, serviced offices and retailing group, today provides a trading update in advance of the annual results proposed to be issued in early March 2009.
Trading at Malmaison and Hotel du Vin has been firm over the 12 months to 31 December 2008 with internal EBITDA and cashflow targets for the year to December 2008 ahead of those for the year to December 2007. Occupancy and room rate for the year were maintained at 79% and £115 respectively, while food and beverage revenue was marginally down, reflecting tougher trading conditions.
Four new hotels were opened during the second half of 2008: Poole in September, Newcastle in October, Aberdeen in November and Edinburgh in December. All of these have traded well since opening. This takes the total number of operating Malmaison to 12 and Hotel du Vin to 14. The Group's hotel at St Andrews received planning consent in December 2008 for conversion to a Hotel du Vin, while in the meantime it continues to trade in its existing format.
Trading at MWB Business Exchange Plc ("Business Exchange"), the Group's AIM-quoted serviced office subsidiary, was strong in the first half of the year. New business rates showed some reduction during the second six months reflecting a focus on maintaining occupancy and building stronger committed income for 2009. Business Exchange maintained occupancy levels at 90% throughout the year.
One new centre was opened during the year, St Clements House in the City, although the company continues to explore a number of Operating and Management Agreement ("OMA") opportunities that enable Business Exchange to open new centres with both little risk and minimal capital expenditure. At 31 December 2008 Business Exchange operated a total of 56 centres with 15,700 workstations and 250 meeting rooms.
At Liberty Plc, MWB's AIM-quoted iconic Regent Street emporium, sales for the first 10 months of the year were ahead of comparative trading levels. Although November's trading reflected the general retailing slow down, sales in December exceeded expectations and almost matched last year's record Christmas as the store cleared its stocks in preparation for a widely anticipated major renovation during January 2009, which will see two-thirds of the building redesigned, re-merchandised and unveiled in February 2009. Trading was also helped by Liberty's newly-launched e-commerce business which also exceeded expectations and showed particularly significant growth in December.
Earlier this year Liberty launched its first stand-alone Liberty of London luxury brand store in Sloane Street. Sales from the store have been slower than anticipated while it secures market share and establishes the brand in the current more difficult retail environment.
The Group will comment in more detail on trading and equity attributable to shareholders when annual results for the year ended 31 December 2008 are announced in March 2009.
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
Ends.