Young & Co.'s Brewery, P.L.C. Class A · LSE:YNGA
Young & Co.'s Brewery, P.L.C. Class A — FY2011 Earnings Presentation
33 slides from Young & Co.'s Brewery, P.L.C. Class A's earnings presentation, June 2011
Slide 1: Results Presentation
Results Presentation
Slide 2: Today's agenda
Today’s agenda • Introduction Stephen Goodyear • Financial review Peter Whitehead • Operations review Patrick Dardis • Introduction to Geronimo Rupert Clevely • Geronimo – progress to date Stephen Goodyear Well & Young’s Summary • Q&A 1
Slide 3: Highlights
Highlights • Good results across the business • Strong growth in hotels profits • Geronimo acquisition an excellent opportunity t it tot accelerate l t growth th • Robust balance sheet and final dividend increased for 14th consecutive year • Very strong start to current year - managed house revenue
Slide 4: Financial Review
YOUNGS “FINANCIAL REVIEW!”
Slide 5: Strong results for 53 weeks ended 4 April 2011
Strong results for 53 weeks ended 4 April 2011 +13 7% +13.7% +11.8% +7.1% +7.2% +2.0% Operating Revenue PBT* EPS* Dividend profit* £142.6m £21.7m £20.8m 32.65p 13.26p * adjusted for exceptional items 3
Slide 6: Group results
Group results 2011 2010 £m £m % Managed houses 29.23 26.31 +11.1 Tenanted houses 5.39 5.35 +0.7 Corporate services (12.87) (11.36) -13.3 Wells & Young’s Young s 2 64 2.64 1 96 1.96 +34 34.7 7 Finance costs (net) (3.57) (2.84) -25.7 Adjusted profit before tax 20.82 19.42 +7.2 4
Slide 7: Adjusted profit on continuing operations
Adjusted profit on continuing operations 2011 2010 £m £m Profit before tax (including Wells & Young’s) 15.3 18.4 Add back Wells & Young’s g tax included in above 0.5 0.3 Operating exceptional items 4.9 0.2 Wells & Young’s Young s exceptional items 01 0.1 05 0.5 Adjusted profit before tax 20.8 19.4 T
Slide 8: Strong cash generation and investment
Strong cash generation and investment 2011 2010 £m £m Cash generated from operations 29.7 26.9 Interest tax and dividends Interest, (14 4) (14.4) (14 0) (14.0) Free cashflow 15.3 12.9 Disposals 3.3 1.0 Geronimo acquisition (60.0) - Other capital expenditure (18.6) (10.8) (Increase)/decrease in net d
Slide 9: Investment in period (excluding Geronimo acquisition)
Investment in period (excluding Geronimo acquisition) Total Spend: £18.4 million (2010: £10.7 million) By Division By Nature of Spend Managed £9.1m Hotels £3.5m Investment on recent acquisitions £7.3 M Geronimo £3.4m Tenanted £2.4m Investment expenditure on existing estate £11.1 M 7
Slide 10: Geronimo acquisition
Geronimo acquisition • Consideration of £60m, financed through new £100m five year bank facility with RBS and Barclays • R b tb Robust balance l sheet h t postt d deall nett d debt/EBITDA bt/EBITDA off < 4 4x • Earnings enhancing in first year of ownership • £1.5m of annualised costs savings achieve
Slide 11: Resultant debt structure
Resultant debt structure Longer dated committed facilities: • £30 million long term (March 2023) £50.0 million • £20 million medium term ((March 2018)) Medium dated committed facilities: • £50 million RCF (Dec 2015) £100.0 million • £50 million term loan (Dec 2013 to 2015) Net debt £122.6 million %
Slide 12: Operations Review
“OPERATIONS REVIEW!”
Slide 13: Estate profile of trading pubs
Estate profile of trading pubs 2010 + - Transfers 2011 Managed 120 2 (2) 2 122 Geronimo - 27 - - 27 Tenanted 99 2 (2) (2) 97 Total 219 31 (4) - 246 Out of the total of 246 pubs, there are 193 freeholds and 12 virtual freeholds (leases with > 40 years to run, with rents that are less than < £10K per
Slide 14: Like for like sales
Like for like sales Adjusted for additional five days of trade Number Sales Change of sites £m % Managed 118 113.3 1.9 Tenanted 93 13.4 1.2 211 126 7 126.7 18 1.8 11
Slide 15: Young's operating performance at pub level
Young’s operating performance at pub level Adjusted for additional five days of trade 2011 Change Revenue £m % Managed 116.0 + 2.7 Geronimo 10.3 N/A Tenanted 14.2 - 0.5 Total 140 5 140.5 + 10.8 10 8 EBITDAR* Managed 35.9 + 3.2 Geronimo 3.3 N/A Tenanted 7.2 + 1.7 T t l Total 46 4 46.4 + 10.7 10 7 *At
Slide 16: Young's managed operating highlights
Young’s managed operating highlights Adjusted for additional five days of trade • Resilience despite challenging market: • Revenue up 2 2.7% 7% (LFL 1 1.9%) 9%) • Operating profit up 4.5% (LFL 4.6%) • EBITDAR up 3.2% • Greatest growth from hotels (RevPar up 14 2%) 14.2%) • Invested £12.6m in managed
Slide 17: Managed liquor and food – highlights
Managed liquor and food – highlights Adjusted for additional five days of trade Liquor • Sales 1.9% up on last year • 2nd Young’s Y ’ pubbb beats t £1 £1m nett profit fit threshold; driven by 31% liquor sales growth • March cask ale festival throughout Young’s managed estate – great success • Hand i
Slide 18: Strong performance in hotels
Strong performance in hotels First half Second half Total Room rate £64.40 £4.61 £67.34 £4.95 £65.82 £4.73 Occupation p 71.7% % 7.40% % 62.8% % 0.70% % 67.0% % 3.80% % REVPAR £46.16 £7.72 £42.29 £3.49 £44.11 £5.49 15
Slide 19: Hotel – highlights
Hotel – highlights • Accommodation sales up 15.2% • 23 boutique rooms added to the Alma – Good initial trading with strong growth in liquor and food sales – National press coverage provided great reviews • Revenue management system launched • New bespoke hotel web site launched • Another 60 rooms up
Slide 20: Strong performance from Geronimo
Strong performance from Geronimo •16 weeks results under Young’s ownership • Revenue £10.3m • Operating p gpprofit £1.4m • EBITDA £2.4m •Sales/profit momentum continues • Total sales up 16.9%* • LFL sales l up 12.6%* 12 6%* • EBITDA £6.0m* excluding head office * Based on Geronimo company’s period f
Slide 21: Tenanted operating highlights
Tenanted operating highlights • Revenue and operating profit were marginally i ll ahead h d (LFL (LFL: sales l up 1 1.2%, 2% operating profit up 1.9%) • London bias provides some protection from challenging market • £1 £1.5m iinvested d iin existing i i pubs b and d £0.8m on one acquisition (White H
Slide 22: Tenanted operating highlights (continued)
Tenanted operating highlights (continued) • Benefits from last year’s investments showing through • Introduced new code of practice and more flexible packages aimed at attracting the best tenants • “Local Heroes” range of guest ales • Additional focus on wine range and product knowledge has delivere
Slide 23: Geronimo
SDs oa YOUNGS “GERONIMO!”
Slide 24: About Geronimo
About Geronimo History / heritage Key team Complementary businesses Premium end managed houses 20
Slide 25: Geronimo: high quality estate focused on London area
Geronimo: high g qquality y estate focused on London area… • 21 in London • 3 concessions and 1 l leasehold h ld att major j ttransportt hubs • 1 in Surrey Heathrow x3 Leasehold Freehold Lingfield, Surrey Concession 21
Slide 26: Geronimo style
Geronimo style 22
Slide 27: Geronimo - progress since acquisition
Geronimo - progress since acquisition • Acquired on 16 December • Integration proceeding well • Synergies coming through as planned • Three new sites added • Surprise, Chelsea • Lion and Unicorn, Kentish Town • Freehold interest in the Crown, Bow • Trading well and in line with our expectations 23
Slide 28: Wells & Young's
Mos yO “WELLS & YOUNG'S!”
Slide 29: Wells & Young's
Wells & Young’s • 40% brewing partnership with Charles Wells Wells, Bedford • Good year, contributing £2.6m adjusted profit before tax • Following loss of Corona Extra and Red Stripe Stripe, focus now on driving own brands and focusing on operational efficiencies • Open to bringing in new brands whe
Slide 30: Outlook and Prospects
“OUTLOOK AND PROSPECTS!”
Slide 31: Outlook and prospects
Outlook and prospects • Current year to benefit from last year’s investments, offset by the related extra interest costs • Very strong managed trade for first 7 weeks, up 34.2% in total (i l di G (including Geronimo) i ) andd up 8 8.8% 8% on a lik like ffor lik like b basis i • Three sites likelyy t
Slide 32: Questions
Questions 26
Slide 33: Slide 33
Young & Co.'s Brewery, P.L.C. — FY2011 Earnings Presentation on 6ix