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14 Jan 2010 08:39
FOR IMMEDIATE RELEASE
14 January 2010
MWB GROUP HOLDINGS Plc:
TRADING UPDATE FOR YEAR ENDED 31 DECEMBER 2009
MWB Group Holdings Plc ("MWB" or "the Group"), the hotels, serviced offices and retailing group, today provides a trading update in advance of its annual results proposed to be issued in March 2010.
Overall occupancy at Malmaison and Hotel du Vin was virtually maintained over the year at 79.3% against 79.8% during the year to 31 December 2008, reflecting increased leisure demand as outlined in the Group's half-yearly financial report. While Average Room Rate (ARR) suffered during the first half of the year there were signs of improvement each month over the remainder of the year. Overall cash generation was strong and better than originally budgeted as a result of reduced capital expenditure and improved working capital management. Since the start of 2010 occupancy levels and catering sales have been impacted by the inclement weather.
At MWB Business Exchange Plc ("Business Exchange"), the Group's AIM-quoted serviced offices subsidiary, the operating environment was particularly challenging during 2009 with pricing under pressure, reflecting market conditions, although enquiry levels remained encouraging. Over the year, management continued to vigorously control the cost base as well as driving yield wherever possible. There was particular emphasis on generating new sales and revenue streams as well as driving client retention. Since the acquisition of 16 centres from MLS, towards the end of the first half of 2009, there has been a period of consolidation as management focused on integrating the poorly managed MLS centres into Business Exchange.
At the end of 2009 Business Exchange operated approximately 20,000 workstations and 350 meeting rooms across 73 operational centres. In addition Business Exchange signed a lease just before the year-end for a 27,000 sq ft serviced office centre in the heart of Paddington, an area which has traditionally been undersupplied with flexible office accommodation. This new centre is expected to open during the second quarter of 2010.
At Liberty Plc ("Liberty"), the Group's AIM-quoted iconic brand, trading continued to benefit from the Renaissance of the Regent Street flagship store in February 2009 which increased footfall and market share over the remainder of the year.
Overall, Liberty's total revenue for 2009 grew by 20% and the flagship store revenue was approximately 16% higher than in the previous year. Beauty and menswear led the revenue surge within the store while fabric sales increased by a further 23% over the division's strong 2008 performance. All other lines of business have increased their revenue with Liberty on-line enjoying a particularly strong Christmas.
On 17 December 2009 MWB issued a prospectus relating to the issue of £27.5m of new equity, the repayment of £7.5m of the Group's Loan Stock and amendment to the terms of the Loan Stock Trust Deed. All resolutions relating to these matters were passed at the Shareholders' and Loan Stockholders' meetings on 11 January 2010 and the fund-raising was completed on 12 January 2010.
The Group will comment in more detail on trading and equity attributable to Shareholders when the annual results for the year ended 31 December 2009 are announced in March 2010.
Ends.
Contact:
Richard Balfour-Lynn, Chief Executive, MWB. Tel: 020 7706 2121
Jag Singh, Finance Director, MWB. Tel: 020 7706 2121
Baron Phillips, Baron Phillips Associates. Tel: 020 7920 3161
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