MWB Group Holdings Plc - Trading Statement (7731Z)

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RNS Number : 7731Z

MWB Group Holdings PLC

20 January 2011

for Immediate Release

20 JANUARY 2011

MWB GROUP HOLDINGS PLC

TRADING STATEMENT

MWB Group Holdings Plc ("MWB" or "the Group"), ultimate parent company of the Malmaison and Hotel du Vin leading boutique hotel group and MWB Business Exchange Plc, the AIM quoted serviced office provider, today presents a trading update in advance of its annual results for the year ended 31 December 2010 to be issued in April 2011.

Malmaison and Hotel du Vin

Despite the return over the important Christmas period of the winter snows that had challenged economic activity throughout the country at the beginning of 2010, growth in average room rates and strong cost control enabled Malmaison and Hotel du Vin to deliver an Operating Earnings before Interest, Taxation and Depreciation, for the year overall, in line with budget and ahead of 2009. Average room rates increased by 3%, whilst overall occupancy for the year at 77.5% compared to 79.3% for 2009.

Malmaison and Hotel du Vin continues to review options for expansion of the brands into Europe and North America. In the meantime, the Malmaison and Hotel du Vin Group has once again shown the resilience of its product offering and earnings stream as it continues to withstand and deliver a creditable performance during the most challenging of economic circumstances.

MWB Business Exchange Plc

The Group's AIM-quoted serviced offices subsidiary, MWB Business Exchange Plc ("Business Exchange") has also encountered challenging market conditions over the course of the year but, nonetheless, has seen overall occupancy levels increase to 84%, up from 82% as at December 2009. While trading conditions have improved, particularly from the corporate sector where we have seen many companies look to re-enter serviced office accommodation, the trading environment remains competitive. We have increased our marketing spend and strengthened our management team to ensure that we capture as much of any new business as possible.

The business remains cautiously optimistic that the recovery will continue and have a positive impact on rate and meeting room income during the course of 2011.

MWB Group Holdings Plc

At the Loan Stock Holders' meeting on 10 January 2011, the redemption date relating to the GBP22 million 9.75% Loan Stock was extended from 30 June 2012 to 31 December 2016. This now aligns with the projected back-stop end date of the Group's Cash Distribution Programme.

Eric Sanderson, Group Chairman, commented: "Throughout 2010, our focus on the quality and value of our hotels' and serviced offices' offering to our customers has enabled both businesses to deliver a creditable performance in difficult market conditions. It is also pleasing to note the extension of the redemption date of the Loan Stock facility."

The Group will comment in more detail when the results for the year ended 31 December 2010 are announced in April 2011.

Contacts

MWB Group Holdings Plc Tel: 020 7706 2121

Richard Balfour-Lynn, Chief Executive

Jagtar Singh, Finance Director

Baron Phillips Associates Tel: 020 7920 3161

Baron Phillips

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