Dividends
The Board is not declaring an interim dividend. As previously set out and in making this assessment the Board is mindful of its fixed charge obligations (notably debt service and pension payments) and considers the need to continue investment to maintain the condition and competitiveness of the estate to be of primary importance for the long-term health of the business.
- Adjusted operating profit and margin growth
- Continued market outperformance
-Momentum growing from fresh initiatives
Trading results
-Like-for-like sales growth of 4.1% in the first half
-Adjusted operating profit growth of £10m to £151m (H1 2018 £141m)
-Adjusted earnings per share growth of 15.8% to 16.1p (H1 2018 13.9p)
Operational highlights
-Strong first half with market outperformance and return to profit growth
-Improved returns from capital programme with 208 projects completed
-Sales focused initiatives driving improved performance across the portfolio
-Efficiencies resulted in increased operating margin of 12.7% (H1 2018 12.5%)
Reported results
-Total revenue of £1,186m (H1 2018 £1,130m)
-Operating profit of £140m (H1 2018 £137m)
-Profit before tax of £75m (H1 2018 £69m)
-Basic earnings per share of 14.3p (H1 2018 13.0p)
Balance sheet and cash flow
-Capital expenditure of £90m (H1 2018 £104m), including 2 new site openings and 206 conversions and remodels (H1 2018 220)
-Adjusted free cash flowa of £23m (H1 2018 £(3)m)
-Net debt reduced to £1.63bn (H1 2018 £1.72bn) representing 3.8 times adjusted EBITDAa (H1 2018 4.1 times)
So other than the lack of dividend the results look pretty good with profits up and debts down.
Not a share I'd buy for my HYP now as it has no dividend, but is a hold over from a purchase of Six Continents (or perhaps even Bass brewing) as my very early records in my spreadsheet were added after the event - I have it recorded as a purchase of SXC in February 2001 which split into MAB and IHG and the latter has been much the better performer.
Why am I hanging onto MAB? Well it is a very small holding so I'd not considered it worth the dealing fee selling. I was tempted to sell recently, but, for the first time last year I actually used some of the 20% off vouchers share holders are given (for our work Christmas meal which was at All Bar One) and saved more than the shareholding is worth. So I've decided it worth keeping just for the shareholder perks.