MBE MWB

 

TIDMMWB TIDMLBE TIDMMBE 
 
RNS Number : 5402F 
MWB Group Holdings PLC 
14 January 2010 
 

FOR IMMEDIATE RELEASE 
14 January 2010 
 
 
MWB GROUP HOLDINGS Plc: 
TRADING UPDATE FOR YEAR ENDED 31 DECEMBER 2009 
 
 
MWB Group Holdings Plc ("MWB" or "the Group"), the hotels, serviced offices and 
retailing group, today provides a trading update in advance of its annual 
results proposed to be issued in March 2010. 
 
 
Overall occupancy at Malmaison and Hotel du Vin was virtually maintained over 
the year at 79.3% against 79.8% during the year to 31 December 2008, reflecting 
increased leisure demand as outlined in the Group's half-yearly financial 
report. While Average Room Rate (ARR) suffered during the first half of the year 
there were signs of improvement each month over the remainder of the year. 
Overall cash generation was strong and better than originally budgeted as a 
result of reduced capital expenditure and improved working capital management. 
Since the start of 2010 occupancy levels and catering sales have been impacted 
by the inclement weather. 
 
 
At MWB Business Exchange Plc ("Business Exchange"), the Group's AIM-quoted 
serviced offices subsidiary, the operating environment was particularly 
challenging during 2009 with pricing under pressure, reflecting market 
conditions, although enquiry levels remained encouraging. Over the year, 
management continued to vigorously control the cost base as well as driving 
yield wherever possible. There was particular emphasis on generating new sales 
and revenue streams as well as driving client retention. Since the acquisition 
of 16 centres from MLS, towards the end of the first half of 2009, there has 
been a period of consolidation as management focused on integrating the poorly 
managed MLS centres into Business Exchange. 
 
 
At the end of 2009 Business Exchange operated approximately 20,000 workstations 
and 350 meeting rooms across 73 operational centres. In addition Business 
Exchange signed a lease just before the year-end for a 27,000 sq ft serviced 
office centre in the heart of Paddington, an area which has traditionally been 
undersupplied with flexible office accommodation. This new centre is expected to 
open during the second quarter of 2010. 
 
 
At Liberty Plc ("Liberty"), the Group's AIM-quoted iconic brand, trading 
continued to benefit from the Renaissance of the Regent Street flagship store in 
February 2009 which increased footfall and market share over the remainder of 
the year. 
 
 
Overall, Liberty's total revenue for 2009 grew by 20% and the flagship store 
revenue was approximately 16% higher than in the previous year. Beauty and 
menswear led the revenue surge within the store while fabric sales increased by 
a further 23% over the division's strong 2008 performance. All other lines of 
business have increased their revenue with Liberty on-line enjoying a 
particularly strong Christmas. 
 
 
On 17 December 2009 MWB issued a prospectus relating to the issue of GBP27.5m of 
new equity, the repayment of GBP7.5m of the Group's Loan Stock and amendment to 
the terms of the Loan Stock Trust Deed. All resolutions relating to these 
matters were passed at the Shareholders' and Loan Stockholders' meetings on 11 
January 2010 and the fund-raising was completed on 12 January 2010. 
 
 
The Group will comment in more detail on trading and equity attributable to 
Shareholders when the annual results for the year ended 31 December 2009 are 
announced in March 2010. 
Ends. 
 
 
Contact: 
Richard Balfour-Lynn, Chief Executive, MWB.    Tel: 020 7706 2121 
Jag Singh, 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 
 
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