MBE MWB

 

TIDMMWB TIDMMBE TIDMLBE 
 
RNS Number : 0842C 
MWB Group Holdings PLC 
06 November 2009 
 

FOR IMMEDIATE RELEASE 
6 November 2009 
 
 
MWB GROUP HOLDINGS Plc: 
INTERIM MANAGEMENT STATEMENT 
 
 
MWB Group Holdings Plc ("MWB" or "the Group"), the boutique hotel owner and 
operator, serviced offices operator, and retailer, today reports that during the 
period 1 July 2009 to 5 November 2009 its three operating businesses continue to 
perform in line with the Board's expectations as generally referred to in the 
2009 half yearly financial report, despite the uncertain market conditions. 
 
 
At 30 September 2009, the Group's net debt was GBP365m compared to GBP366m at 30 
June 2009, and shareholders' funds were broadly in line with the position at 30 
June 2009 of GBP109m. 
 
 
During July and August 2009, demand at the Group's hotel businesses, Malmaison 
and Hotel du Vin has been broadly consistent with the first half. Since the 
start of September there has been a strengthening of the business across the two 
brands with an improvement in room rates and customer spend on food and beverage 
against the position at 30 June 2009. Occupancy remains strong throughout the 
business at 79% for the first nine months of 2009, in comparison to 80% for the 
same period last year. 
 
 
The average room rate for Hotel du Vin during September 2009 was GBP112 compared 
to GBP109 for the six months ended 30 June 2009, while the Malmaison average 
room rate was GBP102 in September 2009, up from GBP100 for the six months ended 
30 June 2009. Prospects for the remainder of the year are encouraging, as demand 
continues to improve and forward bookings are stronger in comparison to the 
first half of the year. 
 
 
Trading in Malmaison and Hotel du Vin is also benefiting from last year's four 
new hotel openings as they further establish themselves in their respective 
markets. 
 
 
AIM-quoted MWB Business Exchange Plc ("Business Exchange"), one of London's 
leading providers of serviced offices, has continued to consolidate its position 
in London. It has also recently signed a new Operating and Management Agreement 
on a 20,200 sq ft centre in Victoria, London. The new centre, to be operated 
under its City Executive Centre brand, will provide a further 234 workstations 
when it opens in December 2009. 
 
Enquiry levels at Business Exchange in the third quarter remain encouraging 
despite the tough economic climate.  Management continues to maintain a grip on 
costs and focus attention on its client acquisition and retention strategies. 
Occupancy at 30 September 2009 was above 80% compared to 85% at 30 June 2009, 
revenue per available workstation ("REVPAW") was GBP7,295 compared to GBP8,055 
at 30 June 2009 and revenue per occupied workstation ("REVPOW") was GBP8,965 
compared to GBP9,490 at 30 June 
 2009.(1) 
 
 
At Liberty Plc ("Liberty"), the iconic British brand and Regent Street emporium, 
July sales were strong, especially in Liberty of London and Ladieswear. Trading 
at the flagship store during the second half of August was weaker than in the 
same period last year. However revenue has been stronger in September this year 
in comparison to last year, following the launch of the Hermès pop-up store in 
the scarf hall. Overall, Liberty continues to perform ahead of last year 
following the strong trading recorded in the six months ended 30 June 2009. 
 
 
As referred to in MWB's 2009 half-yearly financial report, the Board remains 
mindful of the relative lack of headroom for the gearing covenant in the Group's 
GBP30m Unsecured Loan Stock. The Board has been exploring various options open 
to the Group with the aim of strengthening its financial structure and will 
provide an update on this process as appropriate. 
 
 
 
 
(1) These figures all reflect occupancy, REVPAW and REVPOW at Business 
Exchange's leased centres. They exclude OMAs and managed centres as Business 
Exchange receives fees for operating such centres. These figures also exclude 
immature centres acquired from the administrator or landlords of various 
subsidiaries of the MLS group shortly before the June 2009 period end. 
  Eric Sanderson, Group Chairman, commented: "Our businesses continue to perform 
creditably in the current uncertain climate. It is too early to be certain when 
the upturn will arrive but I am confident we have the management teams, services 
and products to deliver a sound performance over the course of 2009." 
 
 
Ends. 
Contact: 
    Richard Balfour-Lynn, Chief Executive, MWB.    Tel: 020 7706 2121 
    Andrew Blurton Joint Finance Director, MWB.    Tel: 020 7706 2121 
    Baron Phillips, Baron Phillips Associates.    Tel: 020 7920 3161 
      07767 444 193 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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