Trading Statement

Mitchells & Butlers PLC
27 September 2007


27 September 2007

                            Mitchells & Butlers plc
                            Pre Close Trading Update

Mitchells & Butlers announces a strong trading performance in the 22 weeks to 15
September 2007 with earnings for the year before exceptional items expected to
be at the upper end of the Board's expectations.

Same outlet like-for-like sales in the 18 weeks to 15 September 2007 (the period
since that covered at the Interim Results) increased by 2.6%. This represents a
resilient performance during a period of poor weather, the introduction of the
smoking ban in England and strong comparatives in July to September last year.
Significant drinks market share gains have been made against an on-trade market
where beer volumes fell by almost 7% in the four months to the end of August.

For the 50 weeks to 15 September 2007, same outlet like-for-like sales increased
by 3.2%, with drinks sales up 2.5% and food sales up 5.3%. Residential same
outlet like-for-like sales for the 50 weeks increased by 3.4%, with Local pubs
performing very strongly, particularly in food, but the pressure on mid market
consumers continuing to lead to some slowing in Pub Restaurants. On the High
Street, the successful evolution of our formats and the buoyancy of trading in
central London led to increasing like-for-like sales growth of 3.1% in the 50
weeks with a further improvement in the last 18 weeks. Total Retail sales for
the 50 weeks were 9.1% ahead and average weekly sales per managed pub were up 6%
to £18.5k.

In the 11 weeks since the introduction of the smoking ban, same outlet
like-for-like sales for our English pubs excluding those previously converted to
non-smoking, increased by 2.2%, with drinks sales up 0.9% and food sales up
5.8%. This result is in line with our expectations of the initial impact from
the ban before the onset of winter. We are encouraged by trading in Scotland up
3.9% in the last 18 weeks and in the longer term we continue to believe the
overall impact of the ban will be beneficial to our business.

Our operational strategy, emphasising quality, value and innovation, has been
key to this resilient trading performance. Average retail price rises over the
year of less than 2% for food and drink remained below inflation, reinforcing
our value position in a market characterised by substantial real price
increases. Our focus remains on generating profitable volume growth and we are
making further revenue investment in the value of our menus to strengthen our
competitive position. Customer service standards have continued to be enhanced
by our staff training programmes, evidenced by increased mystery guest scores.

Sales increases have been efficiently converted into profits growth. This has
been achieved through further improvements in employee productivity, purchasing
gains and effective cost controls, which have overcome £8m of external
regulatory cost increases. As a result, Retail net operating margins are broadly
in line with last year despite £14m of closure and pre-opening costs arising
from the conversion of the Acquired Sites.

The integration of the Acquired Sites has progressed well. 163 of the sites have
now been converted to Mitchells & Butlers' formats, with the remaining
conversions expected to be completed during the first half of next year. To
date, average weekly sales uplifts on the converted sites are running
approximately 20% above the levels at which the sites were acquired. This is
despite the substantial impact of the poor summer weather, particularly on the
country pub restaurants in destination locations. The performance is on track to
deliver in the year 2008/9 uplifts of 30% in average weekly sales as anticipated
at the time of acquisition. With further post-conversion sales build-ups and a
significant focus on enhancing staff productivity, the Acquired Sites are
expected to deliver strong profits uplifts in the year ahead.

In addition to the Retail profits, an operating profit of approximately £7m is
expected from SCPD for the current year, of which the majority relates to the
sale of a long term development property in Burton-on-Trent completed in August.

Value release from freehold property estate

The Board continues to believe that substantial value can be released to
shareholders through the creation by Mitchells & Butlers of a dedicated property
company structure and discussions are continuing to implement a transaction on
acceptable financing terms once the debt markets have stabilised.

The current post tax mark-to-market deficit on the hedges taken out in
connection with the planned R20 transaction remains at approximately £140m and,
although not a cash cost, any accounting loss related to the debt hedging
arrangements at the year-end date will be accounted for as an exceptional item.

Outlook

Despite the uncertain outlook for consumer spending, Mitchells & Butlers is
competitively well placed to make further market share gains in the year ahead.
Margin reinvestment in the quality and value of our food offers is being
actively pursued to generate further volume increases. This will help to
mitigate the estimated £12m of additional regulatory costs next year, resulting
primarily from increases in the National Minimum Wage and holiday pay, as well
as the significant upward pressures on food costs and the impact of the smoking
ban. With the benefits from the conversion of the Acquired Sites starting to be
more fully reflected next year and the prospects for further market share gains,
we anticipate a resilient performance amidst more challenging market conditions.

Mitchells & Butlers will announce its Preliminary Results for the year ended 29
September 2007 on 29 November 2007.

For further information, please contact:

Investor Relations:                                       0121 498 6513
Erik Castenskiold

Media                                                     
Kathryn Holland                                           0121 498 4526
James Murgatroyd (Finsbury Group)                         020 7251 3801

There will be a conference call for analysts and investors at 8.30am; please
dial 020 7162 0025. The replay will be available until 8 October 2007 on 020
7031 4064, passcode 767475.

APPENDIX:

Same outlet like-for-like sales*
                          18 weeks** to                   50 weeks to
                        15 September 2007              15 September 2007
Residential                    2.1%                           3.4%
High Street                    3.5%                           3.1%
Total                          2.6%                           3.2%

Uninvested like-for-like sales*
                          18 weeks** to                   50 weeks to
                        15 September 2007              15 September 2007
Residential                    0.6%                           1.7%
High Street                    2.7%                           2.4%
Total                          1.4%                           1.9%

* Excludes the Acquired Sites
** Last reported like-for-like sales included 32 weeks to ensure comparability
of Easter trading.

Notes for editors:

- Mitchells & Butlers owns and operates around 2,000 high quality pubs in prime
  locations nationwide. The Group's predominantly freehold, managed estate is
  biased towards large pubs in residential locations. With around 3% of the pubs
  in the UK, Mitchells & Butlers has 10% of industry sales, and average weekly
  sales per pub of over three times the industry average.
- The 'Acquired Sites' are the 239 pub restaurant sites acquired from Whitbread
  plc in August 2006.
- Same outlet like-for-like sales include the sales performance for the
  comparable period in the prior year of all managed pubs that were trading for
  the two periods being compared. 84% of the estate is included in this measure.
- Uninvested like-for-like sales include the sales performance for the
  comparable period in the prior year of those managed pubs that have not
  received the expansionary investment of more than £30,000 in the two periods
  being compared. 75% of the estate is included in this measure.




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