MBE MWB

RNS Number:1512S
MWB Group Holdings PLC
11 April 2008


FOR IMMEDIATE RELEASE

11 April 2008


                            MWB GROUP HOLDINGS PLC:

                          INTERIM MANAGEMENT STATEMENT


MWB Group Holdings Plc ("MWB" or "the Group") today reports that during the
period from 1 January to 10 April 2008, its three operating businesses have
maintained the exceptional performances they achieved in the year to December
2007, and to date have exceeded last year's EBITDAs, despite market conditions.


MWB Business Exchange Plc, the UK's second largest provider of flexible office
space, has continued to deliver occupancy and licence fee growth with enquiry
levels up 20% year on year. Business Exchange's successful meeting and
conference rooms division has also grown revenue over the same period.


The Malmaison Group, the UK's leading boutique hotels business, comprising
Malmaison and Hotel du Vin, opened five new hotels last year and these are
already delivering stabilised and mature income and profit streams. This year
further growth is anticipated as three more Hotel du Vins and a further
Malmaison open, taking the total number of operating properties to 26. This will
underpin the Malmaison Group property values which at December 2007 stood at
�529m.


At Liberty, sales and margins at the Regent Street emporium have been on budget
while the wholesale business has shown growth. Meanwhile, as planned, Liberty of
London's first stand-alone shop will open this June representing a major step
forward in the development of this global luxury brand.


Despite the continued growth of MWB's operating businesses, the Board recognises
that the current economic climate and "credit crunch" makes their sale by the
end of 2008 less likely to be achieved at prices reflecting their current
financial success and strong brand values. As a result, the Board firmly
believes that it is in the best interests of all shareholders that the Cash
Distribution Programme is extended until December 2010 in line with the approval
granted by shareholders at its implementation.


However, it remains the clear intention of the whole Board to sell these
businesses as soon as market conditions recover sufficiently to realise full
shareholder value. The nature and timing of the realisation programme will
continue to be kept under review and the Board has retained Lazard for this
purpose.


As the Group's business plan has been extended, the services and incentive
agreements with ServCo have also been extended in line with the original
shareholder approved agreements. The Non-Executive Directors, in accordance with
those agreements, have undertaken their annual review and by the end of 2008
fees payable by MWB will reduce from �3.5m to �2.4m to reflect the reduction in
overhead costs. To date property sales totalling more than �600m have been
successfully achieved, at prices well in excess of book values. As a result the
Group has repaid the majority of its debt from the time of the programme's
implementation.


Eric Sanderson, Group Chairman, said: "I continue to be heartened by the
performance of our operating businesses in the current climate and believe that
the extended arrangements are in the best interests of all our shareholders."


                                   

Contact:

MWB Group                                                     Tel: 020 7706 2121
Eric Sanderson, Chairman, or Andrew Blurton, Finance Director

Lazard & Co Ltd                                               Tel: 020 7187 2000
William Rucker

Baron Phillips Associates                                     Tel: 020 7920 3161
Baron Phillips


                                     Ends.




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

END
IMSFKDKPCBKKPQD

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