MBE MWB

RNS Number:4662L
Marylebone Warwick Balfour Grp PLC
10 January 2008



FOR IMMEDIATE RELEASE

10 January 2008



                     MARYLEBONE WARWICK BALFOUR GROUP Plc:
                  TRADING UPDATE FOR YEAR TO 31 DECEMBER 2007


Marylebone Warwick Balfour Group Plc ("MWB" or "the Group"), the hotels,
serviced offices and retailing group, today provides a trading update in advance
of the annual results proposed to be issued in early March 2008.


Trading in the Malmaison group which includes Hotel du Vin, has been excellent
over the 12 months to 31 December 2007.  All internal EBITDA and cashflow
targets for the year to December 2007, which were significantly higher than
those for the year to December 2006, were met.  Occupancy for the year was
maintained at 79% and average room rate for the year was up 8% at �115.  The
Directors are confident that trading in 2008 will be strong.


Expansion in Malmaison has continued strongly over the year with new openings in
Liverpool, Reading, Cheltenham, Cambridge and York, taking the total number of
operating hotels to 22.  All new hotels are trading successfully and since their
launch have become well established in their respective locations.


A further four hotels at Poole, Newcastle, Edinburgh and Aberdeen are under
construction or renovation and are due to open during 2008 taking the total
number to 26. In addition an existing operating hotel has already been acquired
for conversion to a Hotel du Vin at St Andrews in Scotland during the first week
of January 2008 and a further three sites are currently in advanced stages of
negotiation, including sites at Chester and Canterbury.


Trading at MWB Business Exchange Plc ("Business Exchange"), the Company's
AIM-quoted serviced office subsidiary has been, and continues to be, very
strong.  The year finished with continuingly high occupancy levels of 90%, up
from 78% at December 2006 and 88% at June 2007. In addition, Business Exchange
increased pricing by over 10% during the year to December 2007 and enters 2008
with over 55% of the year's projected licence fee income already committed.


Business Exchange opened a total of seven new centres during the year to
December 2007, continuing its successful strategy of expanding within Central
London, particularly in the West End, through new leases and corporate
acquisitions.  Growth has been enhanced by Operating and Management Agreements
("OMAs") particularly in the City and regional centres.


These OMAs facilitate portfolio expansion without Group exposure to substantial
capital expenditure or long-term lease liabilities, while still generating
management fees and shares of operating profits.  OMA turnover for the year to
December 2007 totalled approximately �5.8m, generating significant EBITDA for
the Group.


The expansion programme has proved very successful with newly opened centres
reaching maturity in less than six months.  Business Exchange's most recent
centre at Old Broad Street in the City opened at over 95% occupancy as a result
of our pre-opening marketing activity.  One of the major clients to move in is a
leading clearing bank on a deal spanning 21 months.  At 31 December 2007, the
Business Exchange portfolio comprised 57 centres with 15,500 workstations and
250 meeting rooms.


With continued strong trading and successful new centre performance, the results
of Business Exchange for the year to 31 December 2007 are forecast to exceed
market expectations.


At Liberty Plc, the Company's AIM-quoted iconic Regent Street emporium, progress
continues to be made in the development and establishment of the Liberty of
London luxury brand where sales over the period have been good. Sales for the
four weeks to 24 December 2007 were more than 5% higher than the comparable
period a year ago.  Revenue during the post Christmas sales has been at a
similar level to that achieved in the prior year period.


A number of senior management appointments have been made at Liberty following
Geoffroy de La Bourdonnaye's arrival in the Summer as Chief Executive. The key
appointments announced last September are now in place and additional
appointments will be made during 2008 to further strengthen the team and provide
the foundations for Liberty's future development.


MWB continues to progress opportunities and structures to enhance the level of
return to shareholders in line with its stated Cash Distribution Programme.


The Directors believe that, despite the current credit crunch and uncertainty
over consumer spending, the outlook for 2008 for the Group is extremely
positive.   The Group will comment in more detail on trading and equity
attributable to shareholders when annual results for the 12 months ended 31
December 2007 are announced in early March 2008.


                                     Ends.


Contacts:

            Richard Balfour-Lynn, Chief Executive, MWB.      Tel: 020 7706 2121
            Andrew Blurton, Finance Director, MWB.           Tel: 020 7706 2121
            Baron Phillips, Baron Phillips Associates.       Tel: 020 7920 3161




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

TSTBKLLBVFBEBBV

MWB Business Exchange (LSE:MBE)
Historical Stock Chart
From Jun 2024 to Jul 2024

MWB Business Exchange (LSE:MBE)
Historical Stock Chart
From Jul 2023 to Jul 2024