Fuller, Smith & Turner P.l.c. Class A · LSE:FSTA
Fuller, Smith & Turner P.l.c. Class A — H1 FY2025 Earnings Presentation
30 slides from Fuller, Smith & Turner P.l.c. Class A's earnings presentation, November 2024
Slide 1: Half Year Results for the 26 weeks ended 28 September 2024
Half Year Results for the 26 weeks ended 28 September 2024 The Holly Bush, Hampstead
Slide 2: Agenda
AGENDA HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW CURRENT TRADING & OUTLOOK The Windmill, Portishead – overlooking The Severn Estuary
Slide 3: Strategic Highlights
STRATEGIC HIGHLIGHTS A busy and successful first half of the year Enhance our Estate • Completed sale of 37 non-core pubs to Admiral Taverns for £18.3m • Sold The Mad Hatter for a total consideration of £20m – a £17.2m profit to book value • Acquired Lovely Pubs – seven stunning pubs for £22.5m, at
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Another strong set of results Managed LFL Adjusted profit Adjusted EPS Interim dividend sales growth before tax per share HY2025 £17.6m 21.81p 7.41p +5.2% +21% +27% +12% HY2024 £14.5m 17.16p 6.63p
Slide 5: Financial Review
FINANCIAL REVIEW The Butcher’s Hook & Cleaver, West Smithfield
Slide 6: Income Statement
INCOME STATEMENT HY2025 HY2024 • Reported revenues up 3%, £m £m reflecting movement of 23 pubs Revenues 194.1 188.8 +3% from Managed to Tenanted – like for like Managed sales up 5.2% Operating costs (169.9) (167.4) • Operating margin improvement Adjusted operating profit 24.2 21.4 from 11.3% to 12.5
Slide 7: Divisional Results
DIVISIONAL RESULTS HY2025 HY2024 £m £m Managed Pubs and Hotels Revenue 176.6 172.5 • Grown Managed Pubs and Hotels Operating profit* 27.7 25.4 EBITDA margin from 21.5% to 22.1% EBITDA* 39.1 37.1 EBITDA % 22.1% 21.5% • Tenanted Inns EBITDA margin Tenanted Inns increased to 52.0% aided by Revenue 17.5
Slide 8: Managed Revenue Analysis
MANAGED REVENUE ANALYSIS LFL Sales v PY +7.5% • HY2025, like for like Managed sales growth of 5.2% +5.2% +4.2% +2.1% • Pricing benefit of 6.7% • Particularly strong performance in Urban areas, which were up 7.5% Rural Suburban Urban Total No. of 33 69 70 172 LFL sites Total Sales £m • Well-balanced
Slide 9: Strong Balance Sheet
STRONG BALANCE SHEET HY2025 HY2024 £m £m • High quality asset base Property, plant & equipment 580.3 580.5 • 87% of Fuller’s estate are freehold sites Right-of-use assets (IFRS 16) 56.8 62.8 • Invested £10.0m into the estate to maintain Other non-current assets 50.2 45.2 and enhance our premium posi
Slide 10: Net Debt
NET DEBT • Net debt at 28 September 2024 of £128.2m excluding leases (30 September 2023: £129.4m) • Reduced leverage – net debt/EBITDA** of 2.3 times (30 September 2023: 2.6 times) • Significant headroom available with £200m bank facilities to May 2027 • Zero premium collar until September 2025 over
Slide 11: Cashflow
CASHFLOW HY2025 HY2024 £m £m Adjusted EBITDA 37.6 34.8 • Strong cashflow generation has delivered shareholder returns and enabled continued Working capital (10.8) (4.2) investment in the estate Interest (5.0) (5.2) Tax payment (1.4) - • Working capital outflow is largely the unwind of £7.7m one-off
Slide 12: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Policy Targets & Philosophy HY2025 Update Invest in long-term Returns-based approach to • Invested £10m into the estate in HY2025 with organic growth capital investment plans to invest around £30m in the full year Sustainable & Dividend cover normalised range progressive
Slide 13: FY2025 Guidance
FY2025 GUIDANCE • Strong start to the year, with continued sales and earnings growth • Depreciation expected to be in the region of £27m • Interest charge expected to be in the region of £14m • Adjusted effective tax rate estimated at 27 – 28% • Organic capital investment of c.£30m • IFRS 16 reconci
Slide 14: Business Review
BUSINESS REVIEW Mortons Kitchen Bar & Deli, Dickens Heath
Slide 15: Strategy House
STRATEGY HOUSE Purpose We create experiences that nourish the soul Mission We’re crafting a family of distinctive pubs and hotels where people feel they belong Values Doing things the Being part of the Celebrating Always asking right way family individuality what’s next? Strategy Delight Evolve our
Slide 16: Investing in Our Iconic Estate
INVESTING IN OUR ICONIC ESTATE • Total investment in H1 of £10m • £8.5m in Managed Pubs & Hotels • £1.5m in Tenanted Inns • Planned investment in H2 of c.£20m • Schemes in H1 include £2m investment at The Head of the River in Oxford • Riverside location in a popular tourist area • Upgraded rooms del
Slide 17: Growing Our Estate: Lovely Pubs Acquisition
GROWING OUR ESTATE Lovely Pubs Acquisition • Seven outstanding properties in affluent Warwickshire acquired for £22.5m – an EBITDA multiple of 7.25x • Six of the sites are freehold and one site has 16 bedrooms • Immediately earnings enhancing • Freshly-cooked, locally-sourced, food from skilled kitc
Slide 18: Lovely Pubs sites
The Queen’s Head, Stoke Pound The Moat House, Kings Coughton The Orange Tree, Chadwick End The Farm, Monkspath Mortons Kitchen Bar & Deli, Dickens Heath The Boot, Lapworth Baraset Barn, Alveston
Slide 19: Tenanted Inns
TENANTED INNS • Positive impact of 23 Managed to Tenanted transfers and sale of 37 non-core sites • Revenues up 7% and operating profit increased to £7.5m (FY2024: £6.9m). • Average EBITDA per pub is up 12% year on year • Continue to invest capital in partnership with our Tenants – £1.5m during the
Slide 20: Continued Investment in Our People
CONTINUED INVESTMENT IN OUR PEOPLE The best people build the best businesses • Continued roll out of Lead Your Way, our industry- leading, six-month management development programme • All GMs have completed the course or are on the journey • Pier House senior managers have started • All Head Chefs s
Slide 21: Fresh Food and Premium Dishes
FRESH FOOD AND PREMIUM DISHES To tantalise the tastebuds and deliver financially • Like for like food sales up by 5.5% • Margin improvement from a combination of food deflation and improved menu development • Further planned investment for our Fuller’s Kitchen Academy – creating an environment to in
Slide 22: Delicious Drinks
DELICIOUS DRINKS Premium drinks for premium drinkers • Like for like drink sales up 4.9% • Continued clear focus on choice, range and premiumisation across all categories • Cocktail sales continue to grow – up 6.7% in value and 2.3% in volume • Sales up 271% v pre-covid levels, now accounts for one
Slide 23: Beautiful Bedrooms
BEAUTIFUL BEDROOMS • Like for like accommodation sales rose 4.9% • RevPAR up 6% to £114.10 • Average room rate of £137.90 – an increase of 9% • Added 16 bedrooms with the acquisition of The Baraset Barn near Stratford-upon-Avon – one of our Lovely Pubs • Investments completed or underway at: • The H
Slide 24: Driving Our Digital Footprint
DRIVING OUR DIGITAL FOOTPRINT • Detailed understanding of our customers enables perfectly targeted marketing that we know will resonate • Use of a variety of data to build these customer personas – from both internal and external sources • Structured approach to reaching our customers through digita
Slide 25: Life is too good to waste: On the road to Net Zero
Life is too good to waste On the road to Net Zero • Grassroots Beef now on the menu at Bel & The Dragon, Cotswold Inns & Hotels and a number of Fuller’s pubs, with a view to further listings in the future • Grassroots uses 52% less carbon than traditional beef • Continued roll out of electric-first
Slide 26: Summary and Outlook
SUMMARY AND OUTLOOK • Company is in excellent shape and delivering outstanding results • Like for like sales up 5.2% • Adjusted PBT up 21% • Strong growth has continued • Like for like sales for first 32 weeks of the year up 5.4% • Christmas bookings up 15% on the same time last year • Prudent Balan
Slide 27: Christmas light switch on at The Kingswood Arms, Banstead
Christmas light switch on at The Kingswood Arms, Banstead
Slide 28: Appendix: Fuller's Estate
Appendix: Fuller’s Estate 30 Mar 28 Sep 13 Nov 2024 New Disposed 2024 Disposed 2024 Total Fuller’s 370 7 (38) 339 (1) 338 Managed Pubs & Hotels 180 7 (2) 185 - 185 Tenanted Inns 190 - (36) 154 (1) 153 Number of bedrooms 1,015 16 (6) 1,025 - 1,025
Slide 29: Appendix: IFRS16 reconciliation
Appendix: IFRS16 reconciliation Pre IFRS16 IFRS16 Post IFRS16 £m £m £m Revenue and other income 194.1 - 194.1 Operating costs (171.3) 1.4 (169.9) Adjusted operating profit 22.8 1.4 24.2 Finance costs (5.1) (1.5) (6.6) Adjusted profit before tax 17.7 (0.1) 17.6 Separately disclosed items 11.4 - 11.4
Slide 30: Fuller's Estate
FULLER’S ESTATE q MANAGED PUBS & HOTELS 165 BEL & THE DRAGON 6 @ coTSWoLp INNS & HOTELS 7 @ Lovety puss 7 @ =TENANTED INNS 153 er ° LONDON AREA
Fuller, Smith & Turner P.L.C. — H1 FY2025 Earnings Presentation on 6ix