Fuller, Smith & Turner P.L.C. Class A · LSE:FSTA
Fuller, Smith & Turner P.L.C. Class A — H1 2022 Earnings Presentation
23 slides from Fuller, Smith & Turner P.L.C. Class A's earnings presentation, November 2021
Slide 1: Half Year Results for the 26 Weeks Ended 25 September 2021
HALF YEAR RESULTS FOR THE 26 WEEKS ENDED 25 SEPTEMBER 2021
Slide 2: Agenda
AGENDA The Long Term View Financial Review Trading Patterns Strategy Update Current Trading and Outlook The Business Case Half year results for the 26 weeks ended 25 September 2021 2
Slide 3: The Long Term View
THE LONG TERM VIEW • Predominately freehold-backed company with over 175 years of history and experience to draw on • High-quality, premium estate is fully-opened, geographically balanced, cash generative and well-invested • Company is in excellent financial health, with a strong Balance Sheet and p
Slide 4: Financial Review
FINANCIAL REVIEW The Scarsdale, Kensington
Slide 5: Key Metrics
KEY METRICS Commentary H1 2022 H1 2021 • Trading limitations for the first 17 weeks of the first half Managed LFL sales* 80% 75% • Outside trading areas opened on 12 April 2021 Revenue and other income £116.3m £45.6m • Inside trading areas opened Profit/(loss)before tax £10.6m £(23.0)m with restrict
Slide 6: Divisional Results
DIVISIONAL RESULTS Commentary H1 2022 H1 2021 £m £m • Trading profitably as a group Managed and building week on week Revenue 104.4 39.4 • Strong sales in rural areas from April, with City sites taking Operating profit/(loss)* 13.6 (10.6) longer to recover, but now seeing steady increase in Tenanted
Slide 7: A Balanced Estate
A BALANCED ESTATE Seven weeks to H1 2022 13 November Invested LFL Invested LFL No of Sites Index (PY-1)* No of Sites Index (PY-1)* Rural 31 109 37 106 Outside Suburban 31 93 31 96 M25 Urban 16 88 16 101 Total 78 98 84 101 Rural - - - - Inside Suburban 57 82 55 94 M25 Urban 55 58 55 78 Total 112 69 1
Slide 8: Strong Financial Position
STRONG FINANCIAL POSITION Available facilities and cash at period end 25 September 27 March 2021 2021 • Net debt at 25 September 2021 of £131.5m excluding leases Club facility net of • Bank facilities of £192m (due to expire in £20.8m cash £27.5m Debentures and February 2023), £26m of debentures – t
Slide 9: Cashflow
CASHFLOW Commentary H1 2022 H1 2021 £m £m • Steady improvement in trading Adjusted EBITDA 22.8 (3.7) resulting in much improved Working capital 26.3 7.6 EBITDA despite only being fully opened from 19 July 2021 Interest (2.9) (2.5) • Improved working capital Pension (1.2) (1.1) position, although fla
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET UNDERPINNED BY AN EXCELLENT ESTATE H1 2022 • High quality asset base and low debt £m protects our stable position Property, plant & equipment 588.4 • 92% of Fuller’s estate is freehold by book value Right-of-use assets 77.5 • Property portfolio was last revalued in 1999 Other no
Slide 11: Strategy Update
STRATEGY UPDATE The Bell & Crown, Strand-on-the-Green
Slide 12: Trading Patterns
TRADING PATTERNS • Steady sales growth month on month since reopening across the business • Like for likes in rural pubs and hotels have consistently exceeded 2019 levels since reopening • Cotswold Inns & Hotels (not included in our like for like figures) have delivered strong trading from staycatio
Slide 13: Evolving Consumer Behaviour
EVOLVING CONSUMER BEHAVIOUR • Focus on creating memorable experiences underpinned by a great range of premium food and drinks, particularly cocktails The consumer is back with and craft beer money to spend on premium • Proactive marketing campaigns promoting exciting, high- experiences quality, in-p
Slide 14: Solid Supply Chain Partnerships
SOLID SUPPLY CHAIN PARTNERSHIPS • Long-term relationships and a collaborative approach are mutually beneficial and are ensuring continuity of supply • The long-term supply agreement with Asahi has protected the supply of beers to our Managed and Tenanted estates and ensured a high level of service •
Slide 15: Talent Retention and Development
TALENT RETENTION AND DEVELOPMENT • Our people are the key to our success and our goal is to develop and retain talent • Continued investment in home-grown talent with seven tailored development programmes to build genuine career paths at all levels – 130 pupils on the Chefs’ Guild Scholarship – 123
Slide 16: Growing in a Sustainable Way
GROWING IN A SUSTAINABLE WAY • Commitment to a holistic ESG strategy – Life’s too good to waste – to underpin all our activity • Appointed Oliver Rosevear, ex-Costa Coffee, as our first Head of Sustainability • Quickly identified easy wins both in our pubs and hotels and at the support centre – LED
Slide 17: Tenanted Inns Update
TENANTED INNS UPDATE • Tenanted Inns division remains an integral and cash-generative part of our business • Long-term agreements in place in 98% of our Tenanted Inns • Strong pipeline of enquiries from entrepreneurs and people from outside the industry • Decisions taken around rent during lockdown
Slide 18: A Strong Plan for H2
A STRONG PLAN FOR H2 • Continued winterisation projects at a number of sites including The Mayfly in Stockbridge, The Red Lion in Barnes and The Head of the River, Oxford • Good pipeline of investments including a transformational refurbishment at The White Star Hotel in Southampton, new rooms at Th
Slide 19: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK • Managed like for like sales for seven weeks to 13 November 2021 at 90% of 2019 levels • Tenanted Inns performing ahead of plan • Christmas bookings in good shape with clear customer appetite to socialise with friends and colleagues • Excellent financial position and str
Slide 20: A Great Company for Long-Term Investment
A GREAT COMPANY FOR LONG-TERM INVESTMENT • An outstanding predominately freehold estate that is well-invested, geographically balanced and in excellent condition • A cash generative business driven by an iconic Managed business and entrepreneurial Tenants • A strong Balance Sheet and careful financi
Slide 21: Slide 21
Slide 22: Appendix: A Focused Pubs and Hotels Business Vision & Values
APPENDIX: A FOCUSED PUBS AND HOTELS BUSINESS VISION & VALUES We create exceptional experiences full of style and spirit – characterful pubs and hotels where everyone feels they belong… and where people leave happier than when they arrived Underpinned by our values: – Doing things the right way – Bei
Slide 23: Appendix: Fuller's Estate
APPENDIX: FULLER’S ESTATE 27 Mar 25 Sept 18 Nov Within 2021 Disposed 2021 Transfers 2021 the M25 Managed Pubs & Hotels 211 (2) 209 1 210 58% Tenanted Inns 175 - 175 (1) 174 28% Total Fuller’s 386 - 384 - 384 44% No. of Bedrooms 1,028 (1) 1,027 – 1,027 Managed Pubs & Hotels number includes: • 7 Cotsw
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