Pre-Close Trading Update

21 September 2017

Mitchells & Butlers plc

Pre-Close Trading Update

Trading statement covering the 51 weeks ended 16 September 2017.

Operating performance

Following a strong sales performance in early summer the market has been more challenging in recent weeks, particularly given poor weather this year up against a sunny period last year which has specifically impacted drink sales. Encouragingly like-for-like sales growth continues to be ahead of the marketa. Total sales have increased by 2.9% in the year-to-date.

Like-for-like trading performance since the last update is set out below.

As previously advised, margins for the full year will be below last year due to inflationary cost pressures.

Investments

We have opened 13 new sites and completed 236 conversions and remodels in the financial year to date.

Disposals

During the year we have disposed of 79 sites which did not fit into our long-term estate plan, 73 of which were sold as a package which completed in July with the remainder sold individually. The proceeds from disposals total £46m which is marginally above the net book value of the properties.

Phil Urban, Chief Executive, commented:

"Whilst the weather in August and September has adversely affected the market we remain encouraged that our like-for-like sales performance continues to outperform the marketa. This performance reflects the progress we have made towards our strategic priorities. We continue to work hard to mitigate the cost headwinds faced by the industry and expect to deliver a full year performance in line with the Board's expectations.

We will enter the new financial year with the momentum of solid sales growth, enhanced clarity on pension contributions and a clear strategy which we believe positions the company well to deliver long term shareholder value."

Note: a As measured by the Coffer Peach Business Tracker

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