Highlights
Ø Improving trend in like-for-like net income with growth of 0.6% in the final quarter and a decline of 2.9% for the full year
Ø EBITDA* before exceptional items £313 million (2012: £340 million) primarily reflecting impact of the disposal programme
Ø Focus on operational activities to support publican profitability with £62 million of capital investment across the estate during the year
Ø Strong operational cash generation combined with £150 million net proceeds from disposal programme has reduced net debt by £216 million to £2.5 billion (2012: £2.7 billion)
Ø Unsecured convertible bond issued, raising £97 million, reducing bank debt, net of cash, to £41 million (2012: £310 million)
Ø Like-for-like net income growth has been sustained in the first seven weeks of the current financial year
Statutory results
Ø Profit before tax and exceptional items £121 million (2012: £137 million)
Ø Adjusted earnings per share# 19.0p (2012: 20.5p)
Ø Loss after tax of £4 million (2012: profit £44 million) arising after net exceptional charges of £99 million (2012: £58 million) principally relating to property matters
Commenting on the results, Ted Tuppen, Chief Executive said:
"We are pleased to report an improving trend in our trading performance which, together with our actions to improve the quality of the estate and reduce our net debt, puts us on a clear path to return to growth in the near term.
This performance was particularly pleasing when set against the challenging economic conditions, the adverse weather at the beginning of the year and the failure of our wines and spirits distributor. It is through the tireless efforts of our employees and the great work of our publicans that we have steered the business toward this growth trajectory and have delivered like-for-like net income growth of 0.6% in our final quarter.
Our strong cash generation from operations combined with our successful disposal programme has reduced net debt by £216 million to £2.5 billion which, combined with our recent convertible bond offering, removes the reliance on disposal proceeds for debt reduction. This is a clear turning point and allows us to drive growth in the business from our operational initiatives and the reinvestment of future disposal proceeds to enhance the income potential of our estate.
Like-for-like net income growth has continued into the first seven weeks of the current financial year. Looking ahead, we believe that the quality of our pub estate, the innovation and resilience of our publicans, the dedication of our team and the proactive actions we are taking provide the foundations for delivering sustainable net income growth."
