LBE.L Regulatory News (LBE)

10 Jan 2008 07:01

Marylebone Warwick Balfour Grp PLC10 January 2008 FOR IMMEDIATE RELEASE 10 January 2008 MARYLEBONE WARWICK BALFOUR GROUP Plc: TRADING UPDATE FOR YEAR TO 31 DECEMBER 2007 Marylebone Warwick Balfour Group Plc ("MWB" or "the Group"), the hotels,serviced offices and retailing group, today provides a trading update in advanceof the annual results proposed to be issued in early March 2008. Trading in the Malmaison group which includes Hotel du Vin, has been excellentover the 12 months to 31 December 2007. All internal EBITDA and cashflowtargets for the year to December 2007, which were significantly higher thanthose for the year to December 2006, were met. Occupancy for the year wasmaintained at 79% and average room rate for the year was up 8% at £115. TheDirectors are confident that trading in 2008 will be strong. Expansion in Malmaison has continued strongly over the year with new openings inLiverpool, Reading, Cheltenham, Cambridge and York, taking the total number ofoperating hotels to 22. All new hotels are trading successfully and since theirlaunch have become well established in their respective locations. A further four hotels at Poole, Newcastle, Edinburgh and Aberdeen are underconstruction or renovation and are due to open during 2008 taking the totalnumber to 26. In addition an existing operating hotel has already been acquiredfor conversion to a Hotel du Vin at St Andrews in Scotland during the first weekof January 2008 and a further three sites are currently in advanced stages ofnegotiation, including sites at Chester and Canterbury. Trading at MWB Business Exchange Plc ("Business Exchange"), the Company'sAIM-quoted serviced office subsidiary has been, and continues to be, verystrong. The year finished with continuingly high occupancy levels of 90%, upfrom 78% at December 2006 and 88% at June 2007. In addition, Business Exchangeincreased pricing by over 10% during the year to December 2007 and enters 2008with over 55% of the year's projected licence fee income already committed. Business Exchange opened a total of seven new centres during the year toDecember 2007, continuing its successful strategy of expanding within CentralLondon, particularly in the West End, through new leases and corporateacquisitions. Growth has been enhanced by Operating and Management Agreements("OMAs") particularly in the City and regional centres. These OMAs facilitate portfolio expansion without Group exposure to substantialcapital expenditure or long-term lease liabilities, while still generatingmanagement fees and shares of operating profits. OMA turnover for the year toDecember 2007 totalled approximately £5.8m, generating significant EBITDA forthe Group. The expansion programme has proved very successful with newly opened centresreaching maturity in less than six months. Business Exchange's most recentcentre at Old Broad Street in the City opened at over 95% occupancy as a resultof our pre-opening marketing activity. One of the major clients to move in is aleading clearing bank on a deal spanning 21 months. At 31 December 2007, theBusiness Exchange portfolio comprised 57 centres with 15,500 workstations and250 meeting rooms. With continued strong trading and successful new centre performance, the resultsof Business Exchange for the year to 31 December 2007 are forecast to exceedmarket expectations. At Liberty Plc, the Company's AIM-quoted iconic Regent Street emporium, progresscontinues to be made in the development and establishment of the Liberty ofLondon luxury brand where sales over the period have been good. Sales for thefour weeks to 24 December 2007 were more than 5% higher than the comparableperiod a year ago. Revenue during the post Christmas sales has been at asimilar level to that achieved in the prior year period. A number of senior management appointments have been made at Liberty followingGeoffroy de La Bourdonnaye's arrival in the Summer as Chief Executive. The keyappointments announced last September are now in place and additionalappointments will be made during 2008 to further strengthen the team and providethe foundations for Liberty's future development. MWB continues to progress opportunities and structures to enhance the level ofreturn to shareholders in line with its stated Cash Distribution Programme. The Directors believe that, despite the current credit crunch and uncertaintyover consumer spending, the outlook for 2008 for the Group is extremelypositive. The Group will comment in more detail on trading and equityattributable to shareholders when annual results for the 12 months ended 31December 2007 are announced in early March 2008. Ends. Contacts: Richard Balfour-Lynn, Chief Executive, MWB. Tel: 020 7706 2121 Andrew Blurton, Finance Director, MWB. Tel: 020 7706 2121 Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161 This information is provided by RNS The company news service from the London Stock Exchange