Young & Co.'s Brewery, P.L.C. Class A · LSE:YNGA
Young & Co.'s Brewery, P.L.C. Class A — H1 2010 Earnings Presentation
27 slides from Young & Co.'s Brewery, P.L.C. Class A's earnings presentation, December 2010
Slide 1: Results Presentation for the period ended 27 September 2010
Results Presentation for the period ended 27 September 2010
Slide 2: Agenda
Agenda 1. Overview 2. Financial review 3. Operations review 4. Outlook and prospects 2
Slide 3: Robust results
Robust results • Sales and profit growth in • 14th consecutive year of challenging market dividend increase +20.0% +8.4% +3.2% +2.0% +0.7% Operating Revenue PBT* EPS* Dividend profit* £67.7m £12.4m £13.4m 21.35p 6.36p All results on continuing activities and where marked * adjusted for exceptional i
Slide 4: Highlights
Highlights • Strong results despite challenging market conditions • Resilient trading in liquor and food • Excellent progress in hotels after recent investment • Benefits showing through from greater operating efficiencies • Very good performance from Wells & Young’s • Interim dividend increased for
Slide 5: 2. Financial review
. 2. Financial review (on EST. ee <> 1831
Slide 6: Group results
Group results 2010 Change £m Managed houses 15.26 +2.7% Tenanted houses 2.70 -4.2% Corporate services (5.57) -1.8% Wells & Young’s 2.11 +18.0% Finance costs (net) (1.12) -22.6% Adjusted profit before tax 13.38 +8.4% 6
Slide 7: Adjusted profits on continuing operations
Adjusted profits on continuing operations 2010 2009 £m £m Profit before tax (including Wells & Young’s) 11.9 11.5 Add back Wells & Young’s tax included in above 0.5 0.6 Operating exceptional items 0.4 0 Wells & Young’s exceptional items 0.6 0.2 Adjusted profit before tax 13.4 12.3 Tax (excluding exc
Slide 8: Strong cash flow and continued investment
Strong cash flow and continued investment 2010 2009 £m £m Cash generated from operations 10.9 12.0 Interest, tax and dividends (5.7) (6.4) Free cash flow 5.2 5.6 Disposals 2.7 - Capital expenditure (8.2) (5.2) (Increase)/decrease in net debt (0.3) 0.4 8
Slide 9: Investment in the estate
Investment in the estate Total Spend: £8.1 million (2009: £5.1 million) By Division By Nature of Spend Expenditure on Managed - £5.5m new pubs - £4.2m Hotels - £1.2m Expenditure on existing estate - Tenanted - £1.4m £3.9m 9
Slide 10: Debt structure
Debt structure Long dated committed facilities: • £50 million long term finance (March 2018 to 2023) £90.0 million • £40 million medium term finance (March 2013) Net debt £62.6 million Gearing (no revaluation since 1997) 35.6% % of debt fixed 55.9% Interest cover 9.3 times Composite rate on fixed de
Slide 11: Estate profile of trading pubs
Estate profile of trading pubs March Sept + - Transfers 2010 2010 Managed 120 1 (1) 1 121 Tenanted 99 2 (1) (1) 99 Total 219 3 (2) - 220 Freehold 183 1 (2) - 182 Freeholds above exclude 11 leases with > 40 years to run, with total rent < £10,000 11
Slide 12: Financial summary
Financial summary • Profit before tax up 4.0% • Managed house revenue up 0.9%, and 0.8% like-for-like • Tenanted pub revenues maintained, both total and like-for-like • Increased contribution of 18.0% from Wells & Young’s • Reliable cash generative business – net debt almost unchanged despite contin
Slide 13: 3. Operations review
. 3. Operations review (on EST. ee <> 1831
Slide 14: Like-for-like sales
Like-for-like sales Number Sales Change of sites £m % Managed 119 59.5 +0.8 Tenanted 94 6.9 +0.2 213 66.4 +0.7 14
Slide 15: Operating performance at pub level
Operating performance at pub level 2010 Change Revenue £m % Managed 60.2 +0.9 Tenanted 7.3 -0.5 67.5 +0.7 EBITDAR* £m % Managed 19.2 +0.7 Tenanted 3.6 -1.2 22.8 +0.4 * At outlet level, before interest, taxes, depreciation, rents payable 15
Slide 16: Managed operating highlights
Managed operating highlights 89.0% of revenues – 121 pubs • Good performance in mixed trading conditions • Continued to reject heavy discounting • Liquor sales and gross margins maintained • Food sales up 1.5% • £6.6 million invested, with two new openings – Dial Arch and Lass O’ Richmond Hill • Cle
Slide 17: Two new pubs trading well
Two new pubs trading well Dial Arch, Woolwich • Opened in June to very positive local reception • Strong trading to date Lass O’ Richmond Hill • Acquired in August • Re-opened September after full refurbishment • Early trading encouraging 17
Slide 18: Continued programme of major refurbishments
Continued programme of major refurbishments Coopers Arms, Chelsea Alexandra, Wimbledon 18
Slide 19: Hotel accommodation – key initiatives
Hotel accommodation – key initiatives • Considerable investment in our hotel rooms, and greater focus on strategy and pricing over past three years • New discrete brand launched during summer • Most of our 347 hotel rooms have now been upgraded to premium standard • Websites offering enhanced bookin
Slide 20: The Alma hotel website
DINING PUB HOTEL MEETINGS CELEBRATIONS LOCAL ATTRACTIONS HISTORY CONTACT > THE ALMA Think of The Alma like a boutique hotel, without the attitude — at heart we're a friendly local CUCK HERE TOPE CUTEIORE pub, boasting fantastic cask ales and the best in British food, Upstairs are 23 stylish bedrooms
Slide 21: Young's hotel booking website
“BD YOUNG'S S «< o = 7 ro} ° a — = ° = < w ; BOOK A ROOM @ ONLINE TODAY & RECEIVE A FREE sescast
Slide 22: Hotel accommodation – results showing through
Hotel accommodation – results showing through • Results of recent investment and focus clearly showing through • Revenues up 18.7% - driven by better occupancy and room rates • RevPar up 20.1% - at £46.16 per room 80.00 Results, by half, for two years 75.00 70.00 65.00 60.00 55.00 71.70 50.00 65.39
Slide 23: Tenanted operating highlights
Tenanted operating highlights 10.8% of revenue – 99 pubs • Revenue maintained despite difficult conditions • £1.4m invested in acquisitions and in developing existing estate • Recruited nine new tenants during period – all tenanted pubs trading • Industry accredited Code of Practice • Profit reduced
Slide 24: Wells & Young's
Wells & Young’s • Brewing partnership with • Management of Corona Extra and Red Stripe brands will not Charles Wells, Bedford be renewed – management • Our 40% share contributed £2.1 responding accordingly million to our adjusted profits, up • Focus will be on its enviable ale brand portfolio 18.0%
Slide 25: 4. Outlook and prospects
4. Outlook and prospects 7 oN EST. gan 5 j Sees <
Slide 26: H2 outlook and prospects
H2 outlook and prospects • Positive start to H2 • Total managed house sales up 3.4%, and 1.8% like-for-like • Trading conditions likely to remain challenging • Continue to assess value enhancing opportunities • Remain committed to driving shareholder value from our existing estate 26
Slide 27: Questions
Questions 27
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