HALF YEAR RESULTS

Mitchells & Butlers PLC

21 May 2026

 

MITCHELLS & BUTLERS PLC

LEI no: 213800JHYNDNB1NS2W10

21 May 2026

HALF YEAR RESULTS

(For the 28 weeks ended 11 April 2026)

Highlights

-	Robust trading performance with like-for-like salesa growth of 3.3% over the first half
-	Adjusted operating profita of £181m maintained despite inflationary cost pressure
-	Record guest review scores of 4.7 out of 5 across the brand portfolio

Reported results

- - -	Total revenue of £1,490m (HY 2025 £1,454m) Operating profit of £185m (HY 2025 £181m) Profit before tax of £143m (HY 2025 £134m)
-	Basic earnings per share of 17.9p (HY 2025 16.8p)

Trading results

-	Adjusted operating profita £181m (HY 2025 £181m)
-	Adjusted earnings per sharea of 17.4p (HY 2025 16.8p)

Balance sheet and cash flow

-	Cash inflow before bond amortisation of £98m (HY 2025 £131m)
-	Net debta reduced to £747m (HY 2025 £860m), excluding £405m of IFRS 16 lease liabilities (HY 2025 £438m)

Phil Urban, Chief Executive, commented:

"We have delivered another robust performance over the first half reflecting continued focus on enhancing guest appeal across our diverse portfolio of brands, driving sales growth through compelling customer offers and disciplined execution. Maintaining profits despite the significant inflationary cost challenges facing the sector is testament to the dedication of our teams in delivering the benefits of our Ignite and capital programmes. 

Despite the backdrop of macro uncertainty our priorities remain unchanged, our guest scores are at record highs, we remain committed to the delivery of quality experiences, and we are well placed to further grow market share."

Definitions

a - The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance.  APMs are explained later in this announcement.

There will be a presentation held today at 8:30am accessible by phone on 0203 936 2999, code: 235375 and at https://www.netroadshow.com/events/login/1PeTHmohYBazaFEIhmscj4V6Rf62GltvvIug6

The slides will also be available on the website at www.mbplc.com. The replay will then be available at https://www.mbplc.com/hy2026/analystspresentation

All disclosed documents relating to these results are available on the Group's website at www.mbplc.com

For further information, please contact:

Tim Jones - Chief Financial Officer	[phone]
Amy de Marsac - Investor Relations	[phone]
James Murgatroyd (FGS Global)	[phone]
Jenny Bahr (FGS Global)	[phone]

Note for editors:

Mitchells & Butlers is a leading operator of managed restaurants and pubs. Its portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson's, O'Neill's, Ember Inns, Ego Restaurants and Pesto. In addition, it operates Innkeeper's Collection hotels in the UK and Alex restaurants and bars in Germany. Further details are available at www.mbplc.com and supporting photography can be downloaded at www.mbplc.com/imagelibrary.

CURRENT TRADING AND OUTLOOK

We traded strongly through the first half of the year with like-for-like sales^a growth of 3.3%.  Despite significant cost inflation, due primarily to labour costs and food inflation, our disciplined cost control combined with delivery of Ignite efficiencies has resulted in stable operating profit^a of £181m (HY 2025 £181m). 

Like-for-like sales^a grew by 3.0% in the 30 weeks to 25 April, including Easter in both years, driven by a very strong first quarter. In the most recent 3 weeks like-for-like sales^a growth of 1.1% was broadly consistent with the second quarter reflecting a strong prior year comparative, which benefited from favourable weather alongside some indications of macroeconomic pressures and, more recently, disruption from tube strikes. Over the first half we continued our outperformance to the market^b overall as measured by the CGA Business Tracker.

Cost headwinds for the current financial year are anticipated to be c.£120m before mitigation, slightly lower than previously guided, representing c.5.5% of our cost base. This will be about 60% weighted to the first half due principally to the increased rate of employers' national insurance contributions, which was effective from April 2025, annualising at the half year. Energy costs have now been fully secured for the current financial year. 

We expect cost headwinds, before mitigation, for the FY 2027 financial year to normalise at a lower level of around £95m, representing c.4% of our cost base. We currently have 15% of energy costs secured for FY 2027.

Looking forward, with a strong balance sheet, an enviable estate of well positioned sites backed by a diversified portfolio of brands and offers, we face the future with confidence that we will continue to be successful in our market and generate further value.

BUSINESS REVIEW

Total sales across the period were £1,490m reflecting 2.5% growth on HY 2025. Like-for-like sales^a increased by 3.3% with strong performances through the brand portfolio. Adjusted operating profit^a of £181m was maintained (HY 2025 £181m) despite significant inflationary cost headwinds. 

The business traded very strongly across the festive season with like-for-like sales^a growth of 7.7% over the core three-week period^c, supported by volume growth, and particularly over the five key festive days^d which generated combined like-for-like sales^a growth of 10.5%. Through the first quarter like-for-like sales^a strengthened across the brand portfolio, growing to 4.5%, and remaining well ahead of the market^b.

Sales growth in the second quarter reduced to 1.8%, comprising drinks sales growth of 0.7% and food sales growth of 3.0%, reflecting a strong performance comparative, which benefitted from favourable weather.  Broader macroeconomic conditions also appear to have had a modest impact on discretionary spending during the period. However encouragingly key dates continued to perform well, with like-for-like growth achieved on Mother's Day against a very strong performance last year. 

Over the first half, we continued to outperform the market^b as represented by the CGA Business tracker, and we are confident that this will continue into the second half and beyond.

Over the past year the industry has faced a wave of increased cost headwinds resulting in a return to supply contraction across the sector, after numbers had begun to stabilise in early 2025. In the six months to April 2026 there was an average of 20 net closures a week with food-led sites being particularly impacted (NIQ Hospitality Market Monitor April 2026).

OUR STRATEGIC PRIORITIES

Our strategy, based on three key pillars, has provided the foundation for our ongoing strong performance. We focus on maximising the value generated from our 83% freehold and long leasehold estate, utilising the diversity of our brand portfolio to grow market share with appeal across a broad range of consumer occasions, demographics and locations. The diversity of our portfolio is a key strength, particularly in periods of uncertainty, with trusted, well‑known brands offering guests flexible choices that allow them to tailor their eating‑out decisions to their needs.

Our Ignite programme of work remains a key focus for the business and is at the core of our long-term value creation. We currently have around 40 initiatives underway across a range of areas, all focused on driving sales and delivering cost efficiencies. A number of initiatives focus specifically on enhancing guest experience in order to drive sales growth and build loyalty. The success of these initiatives is reflected in sustained like-for-like sales^a growth as well as continued improvement in guest review scores, which averaged 4.7 out of 5 over the first half. 

Enhancing productivity and efficiency to help mitigate inflationary costs remains an important focus and has been critical in delivering stable profits over the first half.  We have a range of tools and initiatives in place designed to improve operational efficiency including our labour scheduling system which takes a data-led approach to enhancing the deployment of our teams. This system enables our General Managers to maximise sales at busy times as well as reducing costs in shoulder periods to increase profitability over the day.  Given our scale, marginal gains in deployment at site level aggregate to significant margin efficiencies at group level. We therefore remain focused on maximising the potential value of this technology.

We are committed to enhancing the efficiency of our buildings and continue to roll out the use of remote control in-site energy systems which have delivered proven energy consumption savings. Remote control of heating, for example, provides a significant opportunity to reduce consumption whilst also relieving our managers of one of their many daily tasks, allowing them to focus on guests. Our energy initiatives help us to improve efficiency whilst also supporting our sustainability objectives.  

We are embracing the opportunity associated with building AI functionality into our guest journey, as well as in our central support functions, with a number of trials underway. For example, we are trialling AI technology at our host point which provides individual guest preferences to personalise the host's interaction with guests.  In addition, we have built chatbot functionality into a brand website to respond to guests' increasing expectation of being able to access information quickly and effectively through a conversational format. We believe there are multiple further opportunities to utilise AI to deliver value across the organisation and will continue to explore and grow opportunities in this area. 

In technology, we are also investing in a new HR platform, delivering enhanced efficiency of compliance for our central teams alongside functionality designed to improve team productivity and retention. Following extensive development and testing, the system will go live over the summer. In addition, our new guest data platform enables more personalised engagement, supporting guest loyalty and allowing us to use our data more effectively to drive targeted, higher‑return marketing activity. We have also invested in estate-wide replacement of end-of-life network infrastructure and transition to a new long-term technology platform and hosting partner.

Our capital programme continues to deliver significant value through improving the competitive position of our pubs and restaurants within their local markets. Enhancing the effectiveness of delivery of the programme has long been an area of Ignite focus, ensuring optimisation of closure and re-opening timing, streamlining of costs and rigorous analysis of post-investment performance. Over the first half, we completed 122 investment projects comprising 113 remodels, 4 conversions and 5 acquisitions. We are generating strong returns, currently in excess of 30% on remodels, justifying an increasing allocation of capital to this area as we look to re-establish an average 7-year investment cycle.

We acquired 5 sites during the period, one of which was the purchase of the freehold of a site which we previously held as leasehold.  Four new sites were acquired, one of which is in Germany and the remaining three in the UK of which two properties include hotel rooms. We remain opportunistic in relation to new site acquisition and welcome the opportunity to add high quality sites to the estate. 

PEOPLE

Our people remain fundamental to delivering great guest experiences, with engagement continuing to strengthen across all employee groups and turnover falling further and reaching record low levels during the first half of the year. This sustained progress reflects the strength of our Employee Value Proposition, combining a strong sense of belonging and security with clear development and progression opportunities. We are proud to be recognised as the number one apprenticeship employer in the Department for Education awards, as rated by our own apprentices. We continue to invest in talent technology which further supports skills development and career progression.

SUSTAINABILITY

We are committed to reducing the environmental impact of our business and the Board has challenging targets to drive continued momentum in this area.  We have committed to:

-    Net Zero emissions by 2040, including scope 1, 2 and 3

-    Zero operational waste to landfill by 2030

-    50% reduction in food waste by 2030

We remain focused on working towards our sustainability goals and are pleased with the progress we have made. During the first half we have continued to invest in sustainability capital, we now have 274 sites with solar panels, and significant further opportunity to grow our production of renewable energy.  We have electrified 100 kitchens, reducing our reliance on gas for cooking, and have fully removed gas in 29 sites taking the learnings from these projects forward to expand the removal of gas in the coming years.

Our teams are vital to the delivery of progress in other areas where behaviour change and engagement is required to deliver progress. One example of this is recycling, and we are pleased to have increased our recycling rates to over 60% in the year to date.  We provide support for these types of initiatives through our dedicated network of sustainable operations ambassadors, as well as centrally developed online training.

From a social perspective we are proud of our charity partnership with Social Bite, focused on addressing the issue of homelessness in the UK. We have raised over £2.5m over the past 18 months to support Social Bite's work and have employed 40 people impacted by homelessness through our Job's First programme, providing support and access to our best-in-class training capabilities.

We know that our people are passionate about improving the environmental impact of our business whilst having a positive impact on the communities we operate in and are pleased to deliver continued progress in this area, further enhancing our employer proposition.

FINANCIAL REVIEW

On a statutory basis, profit before tax for the half year was £143m (HY 2025 £134m), on sales of £1,490m (HY 2025 £1,454m). 

The Group Income Statement discloses adjusted profit and earnings per share information that excludes separately disclosed items, disclosed by virtue of their size or nature, to allow a more effective comparison of the Group's trading performance from one period to the next.

	Statutory	Adjusteda
	HY 2026	HY 2026	HY 2025
	£m	£m	£m
Revenue	1,490	1,490	1,454
Operating profit	185	181	181
Profit before tax	143	139	134
Earnings per share	17.9p	17.4p	16.8p
Operating margin	12.4%	12.1%	12.4%

At the end of the period, the total estate comprised 1,712 sites in the UK and Germany of which 1,638 are directly managed.

Revenue

Total revenue of £1,490m (HY 2025 £1,454m) reflects growth of 2.5%, a strong period of trading.

Like-for-like sales^a in the first half increased by 3.3%, comprising an increase in like-for-like food sales^a of 4.1% and of like-for-like drink sales^a of 2.4% driven by strengthening spend per head. Slower sales growth in the second quarter reflected a strong prior year comparative, which benefited from unseasonably favourable weather, alongside some indications of macroeconomic pressure on spending.

Like-for-like sales^a:

	Weeks 1-15 Q1	Weeks 16-28 Q2	Weeks 1-28 H1
Food	5.1%	3.0%	4.1%
Drink	3.8%	0.7%	2.4%
Total	4.5%	1.8%	3.3%

Like-for-like sales^a grew by 3.0% in the 30 weeks to 25 April, including Easter in both years and by 1.1% in the most recent 3 week period.

Separately disclosed items

Separately disclosed items are identified due to their nature or materiality to help the reader form a view of overall and adjusted trading. In the period net profit after tax arising on property disposals of £3m was recognised as a separately disclosed item. Refer to Note 4 to the consolidated financial statements for comparative information.

Operating profit and margins^a

Adjusted operating profit^a for the first half was £181m (HY 2025 £181m), in line with the first half of the previous year.

Cost headwinds for the current financial year are anticipated to be £120m before mitigation, representing c.5.5% of our cost base. This is expected to be 60% weighted to the first half in part due to £11m relating to the increased rate of employer national insurance contribution, effective from April 2025, annualising at the half year. Energy costs have now been fully secured for the current financial year.  Adjusted operating margin of 12.1% was 0.3ppts lower than HY 2025 driven by these inflationary costs.

We expect cost headwinds, before mitigation, for FY 2027 to normalise at around £95m, representing c.4% of our cost base.

Interest

Net finance costs of £45m (HY 2025 £50m) for the half year were £5m lower than the same period last year as gearing reduced. The net pensions finance income of £3m (HY 2025 £3m) reflects the surplus funding position now recognised on the balance sheet.

Earnings per share

Basic earnings per share were 17.9p with adjusted earnings per share^a of 17.4p (HY 2025 16.8p basic and adjusted earnings per share^a).  

The basic weighted average number of shares in the period was 597m and the total number of shares issued at the balance sheet date was 600m.

Cash flow

	HY 2026	HY 2025
	£m	£m
EBITDA before movements in the valuation of the property portfolio	260	252
Non-cash share-based payment and pension costs and other	3	6
Utilisation of pension surplus for DC contributions	7	3
Operating cash flow before movements in working capital and pension contributions	270	261
Working capital movement	45	30
Pension escrow return	-	12
Pension contributions	(1)	(1)
Cash flow from operations	314	302
Capital expenditure	(117)	(92)
Acquisition of Pesto Restaurants Limited - contingent consideration	(11)	-
Net finance lease principal payments	(26)	(22)
Interest on lease liabilities	(11)	(9)
Net interest paid	(31)	(37)
Purchase of own shares	(3)	(2)
Tax	(20)	(10)
Other	3	1
Net cash flow before bond amortisation	98	131
Mandatory bond amortisation	(68)	(64)
Net cash flow	30	67

Net cash inflow for the period before bond amortisation of £98m (HY 2025 £131m) benefitted from £7m utilisation of pension surplus towards ongoing DC contributions and working capital inflow of £45m due to payment timing differences.  Capital expenditure increased to £117m with a further £11m outflow in respect of the contingent consideration element of the acquisition of Pesto Restaurants.

After all outgoings, including mandatory bond amortisation of £68m (including the net impact of currency swaps), cash inflow was £30m (HY 2025 £67m).

Capital expenditure

Capital expenditure of £117m (HY 2025 £92m) comprises £115m from the purchase of property, plant and equipment and £2m in relation to intangible assets.

	HY 2026		HY 2025
	£m	#	£m	#
Maintenance and infrastructure	40		33
Remodels - refurbishment	59	113	45	87
Conversions	6	4	8	5
Acquisitions - freehold Acquisitions - leasehold	11 1	4 1	4 2	2 1
Total return generating capital expenditure	77	122	59	95
Total capital expenditure	117		92

Maintenance and infrastructure investment in the period was elevated due to estate-wide replacement of end-of-life network infrastructure and transition to a new long-term technology platform and hosting partner. Our solar panel installation programme also accelerated over the first half.

We acquired 5 sites during the first half for total consideration of £12m. Four new trading sites were acquired, one in Germany and three in the UK, with two properties including hotel rooms. In addition, we purchased the freehold of one previously leased site. Since the balance sheet date, a further two freehold sites have been acquired. 

Remodel project numbers have increased in the period as we remain committed to the resumption of an average seven-year refurbishment cycle across our estate, supported by strong returns with the programme continuing to generate returns in excess of 30% .

On the basis of strong returns and an increase in site acquisition we expect total capital expenditure in the year to increase to c.£230m.

Pensions

Retirement and death benefits are now provided principally by the Mitchells & Butlers Pension Plan (MABPP).

During the period, the MABPP defined benefit surplus has continued to fund the settlement of costs relating to the defined contribution section of the plan.  In the current period the plan has funded £7m (HY 2025 £3m) of employer contributions.

In addition, one further scheme remains. This is closed and unfunded and has estimated liabilities of £21m (HY 2025 £21m).

Net debt and facilities

On the back of a strong cash performance, net debt^a at the period end reduced to £1,152m, comprised of £747m non-lease liabilities and lease liabilities of £405m (HY 2025 £1,298m comprised of £860m non-lease liabilities and lease liabilities of £438m). This represents a multiple of 1.6 times EBITDA over the last year excluding lease liabilities (2.5 times including these liabilities).

Further details of existing debt arrangements and an analysis of net debt can be found in Note 10 to the financial statements and at https://www.mbplc.com/infocentre/debtinformation/. 

Going Concern

After considering forecasts, sensitivities and mitigating actions available to management and having regard to risks and uncertainties, the Directors have a reasonable expectation that the Group has adequate resources to continue to operate within its borrowing facilities and covenants for a period of at least 12 months from the date of signing the financial statements. Accordingly, the financial statements have been prepared on the going concern basis. Full details are included in Note 1.

Director's responsibility statement

We confirm that to the best of our knowledge:

-	The condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting' as required by DTR 4.2.4R and to the best of their knowledge gives a true and fair view of the information required by DTR 4.2.4R;
-	The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first 28 weeks and description of principal risks and uncertainties for the remaining 24 weeks of the year); and
-	The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

This responsibility statement was approved by the Board of Directors on 20 May 2026 and is signed on its behalf by:

Tim Jones

Chief Financial Officer

20 May 2026

Definitions

a - The Directors use a number of alternative performance measures (APMs) that are considered critical to aid the understanding of the Group's performance. Key measures are explained later in this announcement.

b - As measured by the CGA Business Tracker

c - 14 December 2025 to 3 January 2026

d - Christmas Eve, Christmas Day, Boxing Day, New Year's Eve, New Year's Day

GROUP CONDENSED INCOME STATEMENT                                   

for the 28 weeks ended 11 April 2026

				2026						2025					2025
				28 weeks (Unaudited)						28 weeks (Unaudited)					52 weeks (Audited)
				Before separately disclosed itemsa			Total			Before separately disclosed itemsa			Total		Before separately disclosed itemsa			Total
			Notes	£m			£m			£m			£m		£m			£m
Revenue			3	1,490			1,490			1,454			1,454		2,711			2,711
Operating costs before depreciation, amortisation and movements in the valuation of the property portfolio				(1,234)			(1,234)			(1,202)			(1,202)		(2,246)			(2,252)
Net profit arising on property disposals				-			4			-			-		-			1
EBITDAb before movements in the valuation of the property portfolio				256			260			252			252		465			460
Depreciation, amortisation and movements in the valuation of the property portfolio				(75)			(75)			(71)			(71)		(135)			(138)
Operating profit				181			185			181			181		330			322
Finance costs			5	(49)			(49)			(55)			(55)		(100)			(100)
Finance income			5	4			4			5			5		9			9
Net pensions finance income			5,11	3			3			3			3		7			7
Profit before tax				139			143			134			134		246			238
Tax charge			6	(35)			(36)			(34)			(34)		(62)			(61)
Profit for the period				104			107			100			100		184			177
Earnings per ordinary share:			7
	Basic			17.4p			17.9p		16.8p				16.8p		30.9p			29.7p
	Diluted			17.3p			17.8p		16.7p				16.7p		30.6p			29.5p
a.		Separately disclosed items are explained and analysed in note 4.
b.		Earnings before interest, tax, depreciation, amortisation and movements in the valuation of the property portfolio.

All results relate to continuing operations.

GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME

for the 28 weeks ended 11 April 2026

		2026		2025		2025
		28 weeks		28 weeks		52 weeks
	Notes	£m		£m		£m
		(Unaudited)		(Unaudited)		(Audited)
Profit for the period		107		100		177
Items that will not be reclassified subsequently to profit or loss:
Unrealised gain on revaluation of the property portfolio		-		-		88
Remeasurement of pension liabilities	11	(2)		(16)		(18)
Tax relating to items not reclassified	6	-		4		(13)
		(2)		(12)		57
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges:
- Gains arising during the period		1		14		10
- Reclassification adjustments for items included in profit or loss		4		-		5
Tax relating to items that may be reclassified	6	(1)		(4)		(4)
		4		10		11
Other comprehensive income /(expense) after tax		2		(2)		68
Total comprehensive income for the period		109		98		245

  GROUP CONDENSED BALANCE SHEET

11 April 2026		2026		2025		2025
		11 April		12 April		27 September
	Notes	£m		£m		£m
ASSETS		(Unaudited)		(Unaudited)		(Audited)
Goodwill and other intangible assets	8	28		21		28
Property, plant and equipment	8	4,645		4,451		4,591
Right-of-use assets	9	276		302		291
Finance lease receivables		9		10		10
Pension surplus	11	123		141		132
Deferred tax asset		2		3		2
Derivative financial instruments	12	13		19		15
Total non-current assets		5,096		4,947		5,069
Inventories		28		28		26
Trade and other receivables		75		73		79
Current tax asset		1		-		2
Finance lease receivables		1		2		1
Derivative financial instruments	12	-		1		-
Cash and cash equivalents	10	240		253		216
Total current assets		345		357		324
Total assets		5,441		5,304		5,393
LIABILITIES
Pension liabilities	11	(1)		(1)		(1)
Trade and other payables		(501)		(492)		(473)
Current tax liabilities		(3)		(2)		-
Borrowings	10	(172)		(156)		(174)
Lease liabilities	9	(37)		(42)		(42)
Derivative financial instruments	12	(3)		(2)		(4)
Total current liabilities		(717)		(695)		(694)
Pension liabilities	11	(21)		(21)		(21)
Other payables		-		(8)		-
Borrowings	10	(828)		(976)		(900)
Lease liabilities	9	(368)		(396)		(392)
Derivative financial instruments	12	(7)		(15)		(11)
Deferred tax liabilities		(559)		(514)		(546)
Provisions		(12)		(12)		(13)
Total non-current liabilities		(1,795)		(1,942)		(1,883)
Total liabilities		(2,512)		(2,637)		(2,577)
Net assets		2,929		2,667		2,816
EQUITY
Called up share capital		51		51		51
Share premium account		360		358		358
Capital redemption reserve		3		3		3
Revaluation reserve		1,209		1,143		1,209
Own shares held		(6)		(7)		(10)
Hedging reserve		(6)		(11)		(10)
Translation reserve		14		14		14
Retained earnings		1,304		1,116		1,201
Total equity		2,929		2,667		2,816

GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY

for the 28 weeks ended 11 April 2026

	Called		Share		Capital				Own
	up share		premium		redemption		Revaluation		shares		Hedging		Translation		Retained			Total
	capital		account		reserve		reserve		held		reserve		reserve		earnings			equity
	£m		£m		£m		£m		£m		£m		£m		£m			£m
At 28 September 2024 (Audited)	51		357		3		1,143		(9)		(21)		14			1,028		2,566
Profit for the period	-		-		-		-		-		-		-			100		100
Other comprehensive income/(expense)	-		-		-		-		-		10		-			(12)		(2)
Total comprehensive income	-		-		-		-		-		10		-			88		98
Share Capital Issued	-		1		-		-		-		-		-			-		1
Purchase of own shares	-		-		-		-		(2)		-		-			-		(2)
Release of own shares	-		-		-		-		4		-		-			(4)		-
Credit in respect of share-based payments	-		-		-		-		-		-		-			4		4
At 12 April 2025 (Unaudited)	51		358		3		1,143		(7)		(11)		14		1,116			2,667
Profit for the period	-		-		-		-		-		-		-		77			77
Other comprehensive income	-		-		-		66		-		1		-		3			70
Total comprehensive income	-		-		-		66		-		1		-		80			147
Purchase of own shares	-		-		-		-		(3)		-		-		-			(3)
Credit in respect of share-based payments	-		-		-		-		-		-		-		5			5
At 27 September 2025 (Audited)	51		358		3		1,209		(10)		(10)		14		1,201			2,816
Profit for the period	-		-		-		-		-		-		-		107			107
Other comprehensive income /(expense)	-		-		-		-		-		4		-		(2)			2
Total comprehensive income	-		-		-		-		-		4		-		105			109
Share capital issued	-		2		-		-		-		-		-		-			2
Purchase of own shares	-		-		-		-		(3)		-		-		-			(3)
Release of own shares	-		-		-		-		7		-		-		(7)			-
Credit in respect of share-based payments	-		-		-		-		-		-		-		5			5
At 11 April 2026 (Unaudited)	51		360		3		1,209		(6)		(6)		14		1,304			2,929

GROUP CONDENSED CASH FLOW STATEMENT

for the 28 weeks ended 11 April 2026

		2026		2025		2025
		28 weeks		28 weeks		52 weeks
	Notes	£m		£m		£m
Cash flow from operations		(Unaudited)		(Unaudited)		(Audited)
Operating profit		185		181		322
Add back/(deduct):
Movement in the valuation of the property portfolio		-		-		3
Net profit arising on property disposals		(4)		-		(1)
Depreciation of property, plant and equipment	8	55		51		96
Amortisation of intangibles		2		1		3
Depreciation of right-of-use assets	9	18		19		36
Cost charged in respect of share-based payments		5		4		9
Administrative pension costs	11	2		2		4
Amendment of past service cost in relation to the defined benefit obligation		-		-		3
Utilisation of pension surplus for DC contributions		7		3		9
Operating cash flow before movements in working capital and  pension contributions		270		261		484
(Increase)/decrease in inventories		(2)		(1)		1
Decrease in trade and other receivables		2		26		16
Increase/(decrease) in trade and other payables		46		17		(17)
Decrease in provisions		(1)		-		(3)
Pension contributions	11	(1)		(1)		(1)
Cash flow from operations		314		302		480
Interest payments		(33)		(43)		(82)
Interest payments on interest rate swap		(2)		-		(1)
Interest receipts on cross currency swap		1		3		4
Interest payments on cross currency swap		(1)		(2)		(3)
Other interest paid - lease liabilities		(11)		(9)		(14)
Borrowing facility fees paid		-		-		(1)
Interest received		4		5		9
Tax paid		(20)		(10)		(24)
Net cash from operating activities		252		246		368
Investing activities
Acquisition of Pesto Restaurants Ltd - contingent consideration		(11)		-		-
Purchases of property, plant and equipment		(115)		(89)		(169)
Purchases of intangible assets		(2)		(3)		(12)
Net proceeds from sale of property, plant and equipment		1		-		1
Finance lease principal repayments received		1		1		1
Net cash used in investing activities		(126)		(91)		(179)
Financing activities
Issue of ordinary share capital		2		1		1
Purchase of own shares		(3)		(2)		(5)
Repayment of principal in respect of securitised debt	10	(70)		(67)		(134)
Principal receipts on currency swap	10	11		11		21
Principal payments on currency swap	10	(9)		(8)		(17)
Cash payments for the principal portion of lease liabilities		(27)		(23)		(39)
Net cash used in financing activities		(96)		(88)		(173)
Net increase in cash and cash equivalents	10	30		67		16
Cash and cash equivalents at the beginning of the period	10	181		164		164
Foreign exchange movements on cash		-		1		1
Cash and cash equivalents at the end of the period	10	211		232		181

  Cash and cash equivalents are defined in note 10.

 NOTES TO THE INTERIM FINANCIAL INFORMATION

1.          GENERAL INFORMATION

Basis of preparation

Mitchells & Butlers Plc (the Company) is a company domiciled in the UK. These condensed consolidated interim financial statements (interim financial statements) as at and for the 28 weeks ended 11 April 2026 comprise the Company and its subsidiaries (together referred to as the Group). The Group is primarily involved in the hospitality industry providing guests with memorable occasions serving food and drink across a range of restaurants, pubs and bars. This interim financial information has been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting as adopted within the United Kingdom and should be read in conjunction with the Group's last annual consolidated financial statements as at 27 September 2025. They do not include all of the information required for a complete set of financial statements prepared in accordance with International Financial Reporting Standards (IFRS). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. These interim financial statements were authorised for issue by the Company's board of Directors on 20 May 2026

The information for the 52 weeks ended 27 September 2025 does not constitute statutory accounts as defined in 5section 434 of the Companies Act 2006.  A copy of the statutory accounts for that period has been delivered to the Registrar of Companies and has been prepared in accordance with IFRS as adopted within the United Kingdom.  The auditor's report on those accounts was not qualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006. This interim financial information has not been audited or reviewed by the auditor under the International Standard on Review Engagements (UK) 2410.

Going concern The Directors have adopted the going concern basis in preparing these financial statements after assessing the impact of identified principal risks and their possible adverse impact on financial performance, specifically revenue and cashflows throughout the going concern period, being 12 months from the date of signing of these financial statements. The Group has two main sources of funding. Namely, a secured debt financing structure and a £150m unsecured revolving credit facility due to expire in July 2028. Within the secured debt financing structure there are two main covenants: the level of net worth (being the net asset value of the securitisation group) and FCF to DSCR. As at 11th April 2026 there was substantial headroom on the net worth covenant. FCF to DSCR represents the multiple of Free Cash Flow (being EBITDA less tax and required capital maintenance expenditure) generated by sites within the structure to the cost of debt service (being the repayment of principal, net interest charges and associated fees). This is tested quarterly on both a trailing two quarter and a four quarter basis with a minimum level of 1.1 times. The unsecured facility includes financial covenants relating to the ratio of EBITDAR to rent plus interest (at a minimum of 1.25 times) and Net debt to EBITDA (to be no more than 3.0 times) based on the performance of the unsecured estate, tested at each Half Year and Full Year date. Unsecured facilities expire in July 2028, beyond the going concern assessment period. In the year ahead the main uncertainties are considered to be the continuation of growth in sales and the rate of cost inflation. The Directors believe that, subject in particular to global political uncertainties, there are signs of an improving trend in the rate of overall cost inflation facing the Group in the next financial year. The outlook overall however remains uncertain and will depend on a number of factors including consumer spending power and confidence, global political developments, supply chain disruptions and government policy.  1.         GENERAL INFORMATION (CONTINUED) Going concern (continued) The Directors have reviewed the financing arrangements against a forward trading forecast in which they have considered the Group's current financial position. This forecast assumes further growth in sales but recognises the impact of increasing cost pressure, notably in labour, food and utility costs, which the Group will expect to have some success in mitigating. Under this scenario the Group is able to stay within all committed facility financial covenants, with good levels of headroom, and maintains sufficient liquidity throughout.  The Directors have also considered a severe but plausible downside scenario covering adverse movements against the base forward forecast in both sales and cost inflation in which some, but limited, further mitigation activity is taken. In this downside scenario the Group also retains sufficient liquidity throughout the period, and no covenants are breached with reasonable headroom maintained throughout the review period. After due consideration of these factors, the Directors believe that they have a reasonable expectation that the Group has sufficient resources to continue in operational existence for the 12 months from the date of approval of these condensed financial statements, and therefore continue to adopt the going concern assumption in their preparation.

Accounting policies

The interim financial information has been prepared on a consistent basis using the accounting policies set out in the Annual Report and Accounts 2025.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect reported amounts of assets, liabilities, income and expense.

Estimates and judgements are periodically reviewed and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Details of the Group's critical accounting judgements and estimates are described within the relevant accounting policies set out in the Annual Report and Accounts 2025. Judgements and estimates for the interim period remain unchanged.

2.          SEGMENTAL ANALYSIS

The Group trades in one business segment (that of operating pubs, bars and restaurants). The Group's brands meet the aggregation criteria set out in paragraph 12 of IFRS 8 Operating Segments and as such the Group reports the business as one reportable segment.

3.         REVENUE

Revenue is analysed as follows:		2026		2025		2025
		28 weeks		28 weeks		52 weeks
		£m		£m		£m
Food		809		782		1,440
Drink		630		621		1,172
Services		51		51		99
Total		1,490		1,454		2,711

Revenue from services includes rent receivable from unlicensed properties and leased operations of £5m (2025 28 weeks £5m, 2025 52 weeks £8m).

Food and drink revenue includes £16m (2025 28 weeks £14m, 2025 52 weeks £21m) in respect of gift card redemptions, which was recorded within deferred income at the prior period end.

4.          SEPARATELY DISCLOSED ITEMS

In addition to presenting information on an IFRS basis, the Group also presents adjusted profit and earnings per share information that excludes separately disclosed items and the impact of any associated tax. Adjusted profitability measures are presented excluding separately disclosed items as we believe this provides both management and investors with useful additional information about the Group's performance and supports a more effective comparison of the Group's trading performance from one period to the next.  Adjusted profit and earnings per share information is used by management to monitor business performance against both shorter-term budgets and forecasts but also against the Group's longer-term strategic plans.

Judgement is used to determine those items which should be separately disclosed. This judgement includes assessment of whether an item is of sufficient size or of a nature that is not consistent with normal trading activities.

		2026		2025		2025
		28 weeks		28 weeks		52 weeks
	Notes	£m		£m		£m
Remeasurement of contingent consideration	a	-		-		(3)
Amendment of past service cost in relation to the defined benefit obligation	b	-		-		(3)
Total separately disclosed items recognised within operating costs		-		-		(6)
Net profit arising on property disposals		4		-		1
Movement in the valuation of the property portfolio:
- Impairment credit arising from the revaluation of freehold and long leasehold properties	c	-		-		11
- Impairment of short leasehold and unlicensed properties	d	-		-		(5)
- Impairment of right-of-use assets	e	-		-		(8)
- Impairment of goodwill	f	-		-		(1)
Net movement in the valuation of the property portfolio		-		-		(3)
Total separately disclosed items before tax		4		-		(8)
Tax relating to the above items		(1)		-		1
Total separately disclosed items after tax		3		-		(7)

Separately disclosed items are as follows:

a.	Loss on remeasurement of the contingent consideration relating to the acquisition of Pesto Restaurants Limited
b.	In FY 2018 the High Court ruled that pensions provided to members who had contracted-out of their scheme must be recalculated to ensure payments reflect the equalisation of state pension ages in the 1990s. An initial estimate for this liability of £19m was charged in FY 2019, and disclosed separately. Following the buy-in of the Mitchells & Butlers Main Pension Plan during the 53 weeks ending 30 September 2023 work is ongoing to fully quantify the liability, which is now anticipated to cost an additional £3m.
c.	The impairment arising from the Group's revaluation of its freehold and long leasehold pub estate comprises an impairment credit as the result of a revaluation surplus that reverses past impairments net of an impairment charge, where the carrying values of the properties exceed their recoverable amount.
d.	Impairment of short leasehold and unlicensed properties where their carrying values exceed their recoverable amounts, net of reversals of past impairments.

4.          SEPARATELY DISCLOSED ITEMS (CONTINUED)

e.	Impairment of right-of-use assets where their carrying values exceeded their recoverable amounts, net of reversals of past impairments.
f.	Impairment of goodwill where the carrying value exceeded the recoverable amount.

5.            FINANCE COSTS AND INCOME

	2026		2025		2025
	28 weeks		28 weeks		52 weeks
	£m		£m		£m
Finance costs
Interest on securitised debt	(36)		(40)		(72)
Interest on other borrowings	(4)		(6)		(11)
Interest on lease liabilities	(9)		(9)		(17)
Total finance costs	(49)		(55)		(100)
Finance income
Interest receivable on cash balances	4		5		9
Net pensions finance income (note 11)	3		3		7

6.         TAXATION

The taxation charge for the 28 weeks ended 11 April 2026 has been calculated by applying an estimate of the annual effective tax rate before separately disclosed items of 25.2% (2025 28 weeks, 25.7%). The annual effective rate is slightly above the UK statutory rate of 25% largely due to profits arising and taxed in Germany, which has a higher statutory tax rate.

The Group is within the scope of the OECD Pillar Two (Global Minimum Tax) model rules. The legislation has been enacted in the UK and Germany, being the jurisdictions in which the Group operates. The rules were effective for the Group in the prior period. The Group has assessed that no material top-up taxes will arise.

	2026		2025		2025
	28 weeks		28 weeks		52 weeks
Tax charge in the income statement	£m		£m		£m
Current tax:
- Corporation tax	(25)		(11)		(22)
Total current tax charge	(25)		(11)		(22)
Deferred tax:
- Origination and reversal of temporary differences	(11)		(23)		(40)
- Amounts under-provided in prior periods	-		-		1
Total deferred tax charge	(11)		(23)		(39)
Total tax charge in the income statement	(36)		(34)		(61)
Further analysed as tax relating to:
Profit before separately disclosed items	(35)		(34)		(62)
Separately disclosed items	(1)		-		1
	(36)		(34)		(61)

6.         TAXATION (CONTINUED)

	2026		2025		2025
Tax relating to items recognised in other comprehensive	28 weeks		28 weeks		52 weeks
Income	£m		£m		£m
Deferred tax:
Items that will not be reclassified subsequently to profit or loss:
- Unrealised gains due to revaluations - revaluation reserve	-		-		(22)
- Unrealised gains due to revaluations - Retained Earnings	-		-		5
- Remeasurement of pension liabilities	-		4		4
	-		4		(13)
Items that may be reclassified subsequently to profit or loss:
- Cash flow hedges	(1)		(4)		(4)
Total tax charge recognised in other comprehensive income	(1)		-		(17)

7.            EARNINGS PER SHARE

Basic earnings per share (EPS) has been calculated by dividing the profit for the financial period by the weighted average number of ordinary shares in issue during the period, excluding own shares held by employee share trusts.

For diluted earnings per share, the weighted average number of ordinary shares is adjusted to assume conversion of all dilutive potential ordinary shares.

Adjusted earnings per ordinary share amounts are presented before separately disclosed items (see note 4) in order to allow a better understanding of the adjusted trading performance of the Group.

The profit used for the earnings per share calculations is as follows:

	2026		2025		2025
	28 weeks		28 weeks		52 weeks
	£m		£m		£m
Profit for the period	107		100		177
Separately disclosed items net of tax	(3)		-		7
Adjusted profit for the period	104		100		184

The number of shares used for the earnings per share calculations are as follows:

	2026		2025		2025
	28 weeks		28 weeks		52 weeks
	million		million		million
Basic weighted average number of ordinary shares	597		595		595
Effect of dilutive potential ordinary shares:
-     Contingently issuable shares	4		4		5
-     Other share options	1		1		1
Diluted weighted average number of shares	602		600		601

7.            EARNINGS PER SHARE (CONTINUED)

At 11 April 2026, 3,130,166 (2025 28 weeks 4,152,712, 2025 52 weeks 2,949,881) share options were outstanding that could potentially dilute basic EPS in the future but were not included in the calculation of diluted EPS as they are anti-dilutive for the periods presented. Outstanding options can only be dilutive, and therefore included in the diluted EPS calculation, when the average share price during the period exceeds the exercise price of the options.         

	2026		2025		2025
	28 weeks		28 weeks		52 weeks
	pence		pence		pence
Basic earnings per share
Basic earnings per share	17.9		16.8		29.7
Separately disclosed items net of tax per share	(0.5)		-		1.2
Adjusted basic earnings per share	17.4		16.8		30.9
Diluted earnings per share
Diluted earnings per share	17.8		16.7		29.5
Adjusted diluted earnings per share	17.3		16.7		30.6

8.            PROPERTY, PLANT AND EQUIPMENT

	2026		2025		2025
	11 April		12 April		27 September
Net book value	£m		£m		£m
At beginning of period	4,591		4,419		4,419
Additions	110		84		177
Disposals	(1)		(2)		(4)
Net increase from property revaluation	-		-		99
Net impairment of short leasehold properties	-		-		(5)
Depreciation provided during the period	(55)		(51)		(96)
Foreign currency movements	-		1		1
At end of period	4,645		4,451		4,591

Revaluation and impairment

The freehold and long leasehold licensed properties were valued at market value as at 27 September 2025, using information provided by CBRE, independent Chartered Surveyors. This valuation was based on an assessment of individual asset fair maintainable trade (FMT) and property multiples.  The Group has performed an assessment for material changes that would impact the value of its freehold and long leasehold properties at the interim date.  The Group's profit performance is in line with forecast supporting the fair maintainable trade assessed at 27 September 2025 and the property multiples adopted at 27 September 2025 are supported by the current property market.  As such there is no requirement to perform a revaluation at the interim date.

Short leasehold properties, unlicensed properties and fixtures, fittings and equipment are held at cost less depreciation and impairment provisions. During the current period, in accordance with IAS 36, the Group has performed an assessment for indicators of impairment of these categories of property, plant and equipment, together with right-of-use assets (note 9). This review included an assessment that current year performance is in line with the overall Group forecast used in the impairment review at 27 September 2025, and estimates of long term growth rates and capital maintenance from the year end remain appropriate.  In addition, our sensitivity analysis at FY25 year end showed that the impairment charge was relatively insensitive to likely movements in the discount rate (pre-tax WACC) of 11.3%. As such, there are not considered to be any indicators of impairment that would require the Group to perform a further review of impairment.

As a result of the above review, no revaluation or impairment has been recognised in the period (2025 28 weeks £nil, 2025 52 weeks revaluation increase of £99m and short leasehold properties net impairment of £5m).

8.            PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Goodwill and other intangible assets

Goodwill and other intangible assets at 11 April 2026 of £28m (12 April 2025 £21m, 27 September 2025 £28m)  comprise goodwill of £6m (12 April 2025 £7m, 27 September 2025 £6m), brands of £6m (12 April 2025 £6m, 27 September 2025 £6m) and computer software of £16m (12 April 2025 £8m, 27 September 2024 £16m).

Capital commitments

The total amount contracted for but not provided in the financial statements was £24m (12 April 2025 £20m, 27 September 2025 £25m).

9.            LEASES

Right-of-use assets

	2026		2025		2025
	11 April		12 April		27 September
Net book value	£m		£m		£m
At start of period	291		307		307
Additions	6		14		29
Impairment	-		-		(8)
Disposalsa	(3)		(2)		(3)
Depreciation provided during the period	(18)		(19)		(36)
Foreign currency movements	-		2		2
At end of period	276		302		291

a.     Disposals mainly relate to leasehold properties where the freehold has been purchased, and therefore, the right-of-use assets and corresponding lease liabilities (see note 10) have been disposed.  The freehold purchases are reflected in property, plant and equipment additions (see note 8).

Impairment review of right-of-use assets

As described in note 8, the Group has reviewed its short leasehold properties and right-of-use assets for indicators of impairment at the interim date, and determined that there are no indicators that lead the Group to conclude that a further review of impairment is required.

Lease liabilities

An analysis of lease liabilities recognised are as follows:

	11 April		12 April		27 September
	2026		2025		2025
	£m		£m		£m
Current liabilities	37		42		42
Non current liabilities	368		396		392
Total lease liabilities	405		438		434

10.          BORROWINGS AND NET DEBT

Borrowings

	11 April		12 April		27 September
	2026		2025		2025
	£m		£m		£m
Current
Securitised debt	141		134		137
Unsecured revolving credit facilities	-		(1)		-
Overdraft	29		21		35
Short term financing of employee advances	2		2		2
Total current	172		156		174
Non-current
Securitised debt	828		976		900
Total borrowings	1,000		1,132		1,074

Net debt

	11 April		12 April		27 September
	2026		2025		2025
	£m		£m		£m
Cash and cash equivalents	240		253		216
Overdraft	(29)		(21)		(35)
Cash and cash equivalents as presented in the cashflow statementa	211		232		181
Securitised debt	(969)		(1,110)		(1,037)
Unsecured revolving credit facility	-		1		-
Derivatives hedging balance sheet debtb	13		19		15
Short term financing of employee advancesc	(2)		(2)		(2)
Net debt excluding leases	(747)		(860)		(843)
Lease liabilities	(405)		(438)		(434)
Net debt including leases	(1,152)		(1,298)		(1,277)

a	Cash and cash equivalents in the cash flow statement are presented net of an overdraft within a cash pooling arrangement, relating to various entities across the group.
b	Represents the element of the fair value of currency swaps hedging the balance sheet value of the Group's US dollar denominated A3N loan notes. This amount is disclosed separately to remove the impact of exchange rate movements which are included in the securitised debt amount.
c	Advances to employees is a borrowing from Wagestream.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and other short-term highly liquid deposits with an original maturity at acquisition of three months or less. Cash held on deposit with an original maturity at acquisition of more than three months is disclosed as other cash deposits. In the cash flow statement, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

10.          BORROWINGS AND NET DEBT (CONTINUED)

Net debt

Net debt comprises cash and cash equivalents, cash deposits net of borrowings and discounted lease liabilities. Net debt is presented on a constant currency basis, due to the inclusion of the fixed exchange rate component of the cross currency swap. Cash flows on the interest rate and cross currency swaps are shown within interest paid in the Group cash flow statement.

Securitised debt

On 13 November 2003, the Group refinanced its debt by raising £1,900m through a securitisation of the majority of its UK pubs and restaurants owned by Mitchells & Butlers Retail Limited.  On 15 September 2006 the Group completed a further debt ('tap') issue to borrow an additional £655m and refinance £450m of existing debt at lower cost.  The notes are secured on the majority of the Group's property and future income streams therefrom. All of the floating rate notes are hedged using interest rate swaps which fix the interest rate payable.

The overall cash interest rate payable on the loan notes is 6.2% (12 April 2025 6.3%, 27 September 2025 6.3%) after taking account of interest rate hedging and the cost of the financial guarantee provided by Ambac Assurance UK Limited (Ambac).  Ambac acts as a guarantor of the Group's obligations to repay interest and principal on the loan notes.  In the event that the Group is unable to pay such amounts the guarantee is limited to the Class A1N, A3N, A4 and Class AB note holders only.

The securitisation is governed by various covenants, warranties and events of default, many of which apply to Mitchells & Butlers Retail Limited, the Group's main operating subsidiary. There are two main financial covenants, being the level of net assets and free cash flow (FCF) to debt service. FCF to debt service represents the multiple of cash generated by sites within the structure to the cost of debt service. This is tested quarterly on both a trailing two quarter and a four quarter basis. There are additional covenants regarding the maintenance and disposal of

securitised properties and restrictions on its ability to move cash, by way of dividends for example, to other Group companies.

At 11 April 2026, Mitchells & Butlers Retail Limited had cash and cash equivalents of £97m (12 April 2025 £113m, 27 September 2025 £77m).  Of this amount £3m (12 April 2025 £2m, 27 September 2025 £1m), representing disposal proceeds, was held on deposit in an account over which there are a number of restrictions.  The use of this cash requires the approval of the securitisation trustee and may only be used for certain specified purposes such as capital enhancement expenditure and business acquisitions.

The carrying value of the securitised debt in the Group balance sheet is analysed as follows:

	11 April		12 April		27 September
	2026		2025		2025
	£m		£m		£m
Principal outstanding at beginning of period	1,036		1,170		1,170
Principal repaid during the period	(70)		(67)		(134)
Net principal receipts on cross currency swap	2		3		4
Exchange on translation of dollar loan notes	(2)		-		(4)
Principal outstanding at end of period	966		1,106		1,036
Deferred issue costs	(1)		(1)		(1)
Accrued interest	4		5		2
Carrying value at end of period	969		1,110		1,037

Liquidity facility

Under the terms of the securitisation, the Group holds a liquidity facility of £295m provided by two counterparties. The amount drawn at 11 April 2026 is £nil (12 April 2025 £nil, 27 September 2025 £nil).

Unsecured revolving credit facility

The Group holds an unsecured committed revolving credit facility of £150m, which expires on 22 July 2028. The amount drawn at 11 April 2026 is £nil (12 April 2025 is £nil, 27 September 2025 £nil).

10.          BORROWINGS AND NET DEBT (CONTINUED)

Movement in net debt excluding leases

	2026		2025		2025
	28 weeks		28 weeks		52 weeks
	£m		£m		£m
Net increase in cash and cash equivalents	30		67		16
Add back cash flows in respect of other components of net debt:
-     Repayment of principal in respect of securitised debt	70		67		134
-     Principal receipts on cross currency swap	(11)		(11)		(21)
-     Principal payments on cross currency swap	9		8		17
Decrease in net debt arising from cash flows	98		131		146
Movement in capitalised debt issue costs net of accrued interest	(2)		(3)		(1)
Decrease in net debt excluding leases	96		128		145
Opening net debt excluding leases	(843)		(989)		(989)
Foreign exchange movements on cash	-		1		1
Closing net debt excluding leases	(747)		(860)		(843)

Movement in lease liabilities

	2026 28 weeks £m		2025 28 weeks  £m		2025 52 weeks  £m
Opening lease liabilities	(434)		(447)		(447)
Additionsa	(6)		(14)		(26)
Interest charged during the period	(9)		(9)		(17)
Repayment of principal	27		23		39
Payment of interest	11		9		14
Disposalsb	6		2		5
Foreign currency movements	-		(2)		(2)
Closing lease liabilities	(405)		(438)		(434)

a	Additions to lease liabilities include new leases and lease extensions or rent reviews relating to existing leases.
b	Disposals mainly relate to leasehold properties where the freehold has been purchased, and therefore, the right-of-use assets (see note 9) and corresponding lease liabilities have been disposed.

11.          PENSIONS

Retirement and death benefits for eligible employees in the United Kingdom are now provided principally by the Mitchells & Butlers Pension Plan (MABPP).  This plan is a funded, HMRC approved, occupational pension scheme with defined contribution and defined benefit sections.  The defined benefit liabilities relate to this funded plan, together with an unfunded unapproved pension arrangement (the Executive Top-Up Scheme, or MABETUS).  The assets of the MABPP plan are held in a self-administered trust fund separate from the Company's assets.

In addition, Mitchells & Butlers plc also provides a workplace pension plan in line with the Workplace Pensions Reform Regulations.  This automatically enrols all eligible workers into a Qualifying Workplace Pension Plan.

MABPP buy-in policy transaction

During the 53 weeks ended 30 September 2023, the Trustees of the MABPP entered a Bulk Purchase Agreement (BPA) with Standard Life. The resulting policy was set up to provide the plan with sufficient funding to cover all known member benefits of the scheme.  As at the balance sheet date the buy-in continues.

Net reserves as at 11 April 2026 of £39m (12 April 2025 £40m, 27 September 2025 £39m) have been included within the MABPP balance sheet, that cover the estimated additional costs for refinement of the benefit entitlements of the MABPP members and are subject to the finalisation of a data cleanse project that is ongoing at the balance sheet date.  These net reserves are as follows:

-           £15m to cover the impact of contingent spouse pension calculations (which is the majority of this cost), some data corrections and GMP rectification;

-           £24m as an additional liability arising from GMP equalisation, the majority of which will be secured with the insurer when the buy-in is finalised. 

MABPP - recognition of actuarial surplus

Following the MABPP buy-in, during FY24, the Trustees of MABPP resolved that any surplus arising in MABPP can be used to pay for the employer contributions to the defined contribution section of MABPP, which will continue to remain active for the foreseeable future. As such the full value of the surplus was recognised as it was expected to be an economic benefit to the Company.  This continues to apply.   During the period, the surplus has funded £9m (12 April 2025 £6m, 27 September 2025 £12m) of the Company's employer contributions, AVCs in respect of prior year bonus payments and death in service benefits. This is shown in the surplus movements below.

Actuarial valuation

The actuarial valuations used for IAS 19 (revised) purposes are based on the results of the latest full actuarial valuation carried out at 31 March 2022 and updated by the schemes' independent qualified actuaries to 11 April 2026. Schemes' assets are stated at market value at 11 April 2025 and the liabilities of the schemes have been assessed as at the same date using the projected unit method.  IAS 19 (revised) requires that the schemes' liabilities are discounted using market yields at the end of the period on high quality corporate bonds.

The principal financial assumptions used at the balance sheet date have been updated to reflect changes in market conditions in the period.  The key assumptions used at the balance sheet date are discount rate of 6.0% (12 April 2025 6.0%, 27 September 2025 5.9%); pensions increases (RPI max 5%) of 3.1% (12 April 2025 3.0%, 27 September 2025 3.0%); and inflation (RPI) of 3.3% (12 April 2025 3.1%, 27 September 2025 3.1%).  The mortality assumptions remain unchanged from the last financial year end.

Amounts recognised in respect of pension schemes

The net pension surplus is presented in the Group balance sheet as follows.

Group balance sheet	2026		2025		2025
	11 April		12 April		27 September
	£m		£m		£m
Pension surplus (MABPP)a	123		141		132
Current pension liability (MABETUS)	(1)		(1)		(1)
Non-current pension liability (MABETUS)	(21)		(21)		(21)
Net actuarial surplus	101		119		110
Associated deferred tax liability	(25)		(30)		(28)

a.     The MABPP pension surplus comprises the following assets and liabilities.

11.          PENSIONS (CONTINUED)

Actuarial surplus	2026		2025		2025
	11 April		12 April		27 September
	£m		£m		£m
Fair value of scheme's assets	1,117		1,115		1,123
Present value of scheme's liabilities	(1,016)		(974)		(1,013)
Net actuarial surplus	101		141		110

Movements in the net pension surplus are analysed as follows:
	2026		2025		2025
	11 April		12 April		27 September
	£m		£m		£m
Pension surplus at beginning of period	110		139		139
Administration costs	(2)		(2)		(4)
Past service cost	-		-		(3)
Net pensions finance income	3		3		7
Employer contributions to MABETUS	1		1		1
Utilisation of pension surplus	(9)		(6)		(12)
Remeasurement of pension liabilities	(2)		(16)		(18)
Net pension surplus at end of period	101		119		110

12.          FINANCIAL INSTRUMENTS

Fair value of derivative financial instruments

The table below sets out the valuation basis of financial instruments held at fair value by the Group:

	11 April 2026		12 April 2025		27 September 2025
	£m		£m		£m
Financial assets:
Currency swaps*	13		20		15
Financial liabilities:
Interest rate swaps*	(10)		(17)		(15)
	3		3		-

* Level 2 instruments using inputs, other than quoted prices, that are observable either directly or indirectly

The fair value of interest rate and currency swaps is the estimated amount which the Group could expect to pay or receive on termination of the agreements. These amounts are based on quotations from counterparties which approximate to their fair market value and take into consideration interest and exchange rates prevailing at the balance sheet date.

Fair value of financial assets and liabilities

Borrowings have been valued as level 1 financial instruments as the various tranches of the securitised debt have been valued using period end quoted offer prices.  As the securitised debt is traded on an active market, the market value represents the fair value of this debt.  The current value of the overdraft represents its fair value. The carrying value and fair value of borrowings is as follows:

	11 April			12 April			27 September
	2026			2025			2025
	Carrying value £m	Fair value £m		Carrying value £m	Fair value £m		Carrying value £m	Fair value £m
Borrowings (note 10)	(1,000)	(951)		(1,132)	(1,069)		(1,074)	(1,038)

12.          FINANCIAL INSTRUMENTS (CONTINUED)

All other financial assets and liabilities are either short-term in nature or their book values approximate to fair values.

13.   RELATED PARTY TRANSACTIONS

On 4 December 2025, the Group disposed of its 25% shareholding in Fatboy Pub Company Limited for £314,000. As a result, Fatboy Pub Company Limited is no longer an associate company of the Group.

The Group has entered into the following transactions with the associate.  For the current period transactions are disclosed up to the point of disposal.

				2026 28 weeks		2025 28 weeks		2025 52 weeks
				£000		£000		£000
Rent charged				20		61		122
Sales of goods and services				10		11		13
				30		72		135

During the period, Fatboy Pub Company Limited repaid a receivable balance of £173,000. The balance due from Fatboy Pub Company at 11 April 2026 was £nil (12 April 2025 £nil, 27 September 2025 £nil), net of a provision of £nil (12 April 2025 £179,000, 27 September 2025 £173,000). 

During a prior period, Mitchells & Butlers Retail Limited entered an option arrangement with Tottenham Hotspur Football Co Limited (THFC), a related party, to sell the company's leasehold interest in a trading site. THFC paid an agreed amount to the company under the option agreement. Should the option under the option agreement be exercised, THFC would pay a further amount to acquire the site at the fair market value at the time the option agreement was entered into.

Alternative Performance Measures

The performance of the Group is assessed using a number of Alternative Performance Measures (APMs).

The Group's results are presented both before and after separately disclosed items. Adjusted profit measures are presented excluding separately disclosed items as we believe this provides both management and investors with useful additional information about the Group's performance and supports an effective comparison of the Group's trading performance from one period to the next. Adjusted profit measures are reconciled to unadjusted IFRS results on the face of the condensed income statement with details of separately disclosed items provided in note 4.

The Group's results are also described using other measures that are not defined under IFRS and are therefore considered to be APMs. These APMs are used by management to monitor business performance against both shorter term budgets and forecasts but also against the Group's longer-term strategic plans.

APMs used to explain and monitor Group performance include:

APM	Definition	Source
EBITDA	Earnings before interest, tax, depreciation and amortisation, before movements in the valuation of the property portfolio.	Group condensed income statement
Adjusted EBITDA	Annualised EBITDA on a 52-week basis before separately disclosed items is used to calculate net debt to EBITDA.	Group condensed income statement
Operating profit	Earnings before interest and tax.	Group condensed income statement
Adjusted operating profit	Operating profit before separately disclosed items.	Group condensed income statement
Like-for-like sales growth	Like-for-like sales growth reflects the sales performance against the comparable period in the prior year of UK managed pubs, bars and restaurants that were trading in the two periods being compared, unless marketed for disposal.	Group condensed income statement
Adjusted earnings per share (EPS)	Earnings per share using profit before separately disclosed items.	Note 7
Net debt	Net debt comprises cash and cash equivalents, cash deposits net of borrowings and discounted lease liabilities. Presented on a constant currency basis due to the inclusion of the fixed exchange rate component of the cross-currency swap.	Note 10
Net debt : Adjusted EBITDA	The multiple of net debt including lease liabilities, as per the balance sheet compared against 52-week EBITDA before separately disclosed items, which is a widely used leverage measure in the industry.	Note 10 Group condensed income statement

A. Like-for-like sales

The sales this year compared to the sales in the previous year of all UK managed sites that were trading in the two periods being compared, expressed as a percentage. This widely used industry measure provides better insight into the trading performance than total revenue which is impacted by acquisitions and disposals.

			2026		2025		Year-on-year
			28 weeks		28 weeks
	Source		£m		£m		%
Reported revenue	Condensed income statement		1,490.0		1,454.0		2.5%
Less non like-for-like sales and income			(121.0)		(129.0)
Like-for-like sales			1,369.0		1,325.0		3.3%
Drink sales			2026		2025		Year-on-year
			28 weeks		28 weeks
	Source		£m		£m		%
Reported drink revenue	Note 3		630.0		621.0		1.4%
Less non like-for-like drink sales			(45.9)		(50.5)
Drink like-for-like sales			584.1		570.5		2.4%
Food sales			2026		2025		Year-on-year
			28 weeks		28 weeks
	Source		£m		£m		%
Reported food revenue	Note 3		809.0		782.0		3.5%
Less non like-for-like food sales			(67.6)		(70.1)
Food like-for-like sales			741.4		711.9		4.1%
Other sales			2026		2025		Year-on-year
			28 weeks		28 weeks
	Source		£m		£m		%
Reported other revenue	Note 3		51.0		51.0		- %
Less non like-for-like other sales			(7.9)		(8.8)
Other like-for-like sales			43.1		42.2		2.1%

B. Adjusted operating profit

Operating profit before separately disclosed items as set out in the Group Condensed Income Statement. Separately disclosed items are those which are separately identified by virtue of their size or nature. Excluding these items allows a more effective comparison of the Group's trading performance from one period to the next.

			2026		2025		Year-on
			28 weeks		28 weeks		-year
	Source		£m		£m		%
Operating profit	Condensed income statement		185		181		2.2%
Separately disclosed items	Note 4		-4		-
Adjusted operating profit			181		181		-%
Reported revenue	Condensed income statement		1,490		1,454		2.5%
Adjusted operating margin			12.1%		12.4%		0.3bps

C. Adjusted earnings per share

Earnings per share using profit before separately disclosed items. Separately disclosed items are those which are separately identified by virtue of their size or nature. Excluding these items allows a more effective comparison of the Group's trading performance from one period to the next.

			2026		2025		Year-on
			28 weeks		28 weeks		-year
	Source		£m		£m		%
Profit for the period	Condensed income statement		107		100		7.0%
Add back separately disclosed items	Note 4		-3		-
Adjusted profit			104		100		4.0%
Basic weighted average number of shares	Note 7		597		595
Adjusted earnings per share			17.4p		16.8p		3.7%

 D. Net Debt: Adjusted EBITDA

The multiple of net debt as per the balance sheet compared against 52-week EBITDA before separately disclosed items which is a widely used leverage measure in the industry. From FY 2020, leases are included in net debt following adoption of IFRS16. Adjusted EBITDA is used for this measure to prevent distortions in performance resulting from separately disclosed items.

					2026		2025
				28 weeks			28 weeks
		Source		£m			£m
Net debt		Note 10		1,152			1,298
Adjusted EBITDA H1		Group condensed income statement		213			252
Adjusted EBITDA prior year H2				256			209
Adjusted 52-week EBITDA				569			461
Net debt : Adjusted EBITDA				2.5			2.8

 

END