Interim Management Statement

11 Apr 2008 09:58

MWB Group Holdings PLC11 April 2008 FOR IMMEDIATE RELEASE 11 April 2008 MWB GROUP HOLDINGS PLC: INTERIM MANAGEMENT STATEMENT MWB Group Holdings Plc ("MWB" or "the Group") today reports that during theperiod from 1 January to 10 April 2008, its three operating businesses havemaintained the exceptional performances they achieved in the year to December2007, and to date have exceeded last year's EBITDAs, despite market conditions. MWB Business Exchange Plc, the UK's second largest provider of flexible officespace, has continued to deliver occupancy and licence fee growth with enquirylevels up 20% year on year. Business Exchange's successful meeting andconference rooms division has also grown revenue over the same period. The Malmaison Group, the UK's leading boutique hotels business, comprisingMalmaison and Hotel du Vin, opened five new hotels last year and these arealready delivering stabilised and mature income and profit streams. This yearfurther growth is anticipated as three more Hotel du Vins and a furtherMalmaison open, taking the total number of operating properties to 26. This willunderpin the Malmaison Group property values which at December 2007 stood at£529m. At Liberty, sales and margins at the Regent Street emporium have been on budgetwhile the wholesale business has shown growth. Meanwhile, as planned, Liberty ofLondon's first stand-alone shop will open this June representing a major stepforward in the development of this global luxury brand. Despite the continued growth of MWB's operating businesses, the Board recognisesthat the current economic climate and "credit crunch" makes their sale by theend of 2008 less likely to be achieved at prices reflecting their currentfinancial success and strong brand values. As a result, the Board firmlybelieves that it is in the best interests of all shareholders that the CashDistribution Programme is extended until December 2010 in line with the approvalgranted by shareholders at its implementation. However, it remains the clear intention of the whole Board to sell thesebusinesses as soon as market conditions recover sufficiently to realise fullshareholder value. The nature and timing of the realisation programme willcontinue to be kept under review and the Board has retained Lazard for thispurpose. As the Group's business plan has been extended, the services and incentiveagreements with ServCo have also been extended in line with the originalshareholder approved agreements. The Non-Executive Directors, in accordance withthose agreements, have undertaken their annual review and by the end of 2008fees payable by MWB will reduce from £3.5m to £2.4m to reflect the reduction inoverhead costs. To date property sales totalling more than £600m have beensuccessfully achieved, at prices well in excess of book values. As a result theGroup has repaid the majority of its debt from the time of the programme'simplementation. Eric Sanderson, Group Chairman, said: "I continue to be heartened by theperformance of our operating businesses in the current climate and believe thatthe extended arrangements are in the best interests of all our shareholders." Contact: MWB Group Tel: 020 7706 2121Eric Sanderson, Chairman, or Andrew Blurton, Finance Director Lazard & Co Ltd Tel: 020 7187 2000William Rucker Baron Phillips Associates Tel: 020 7920 3161Baron Phillips Ends. This information is provided by RNS The company news service from the London Stock Exchange