Fuller, Smith & Turner P.l.c. Class A · LSE:FSTA
Fuller, Smith & Turner P.l.c. Class A — H1 2021 Earnings Presentation
20 slides from Fuller, Smith & Turner P.l.c. Class A's earnings presentation, November 2020
Slide 1: Half Year Results for the 26 Weeks Ended 26 September 2020
HALF YEAR RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2020
Slide 2: Setting the Scene
SETTING THE SCENE • These are extraordinary times – but this presentation will show that Fuller’s is in good shape to navigate a course through • The investment made in ensuring our pubs and hotels were coronavirus safe was well-received by our customers • Trade grew steadily during the summer – but
Slide 3: Managed Pubs and Hotels
MANAGED PUBS AND HOTELS 85 82 80 80 Like for like sales (%) 75 70 65 61 60 57 55 50 Reopening Restrictions Tier System Lockdown announced 4 July - 5 September 6 September - 24 October 25 October - 31 October 1 - 4 November Half year results for the 26 weeks ended 26 September 2020 3
Slide 4: A Geographically Balanced Business
A GEOGRAPHICALLY BALANCED BUSINESS Half year results for the 26 weeks ended 26 September 2020 4
Slide 5: Utilising the Closure Period
UTILISING THE CLOSURE PERIOD • Used the temporary closure of the estate to ensure we emerge stronger from lockdown • Continued with planned investments and brought forward planned schemes in Bel & The Dragon and Cotswold Inns & Hotels • Accelerated the roll out of planned digital initiatives such as
Slide 6: Investing for the Future
INVESTING FOR THE FUTURE • Accelerated our programme of investing in external spaces and gardens to create further winterproof trading areas • Completed six major schemes: – Opened The White Horse at Wembley, adjacent to the iconic Wembley Stadium complex, part of a redevelopment including over 6,00
Slide 7: Cotswold Inns & Hotels
COTSWOLD INNS & HOTELS • An excellent and timely acquisition • Acquired for an enterprise value of £40m in October 2019 – paid from existing banking facilities • Seven superb freehold sites in the Cotswolds • A premium customer experience in stunning locations, popular as wedding venues and with int
Slide 8: Tenanted Inns
TENANTED INNS • Committed to ensuring our tenants are always in the strongest position to build their businesses and serve their communities • Commercial rent suspended for first four months of the financial year • Tapered rent introduced from August • Innovative initiatives and community support sh
Slide 9: Coronavirus Financial Response
CORONAVIRUS FINANCIAL RESPONSE • For the entire first quarter of the financial year, all pubs and hotels remained closed • Actions taken to minimise cash outflows during estate closure: • Government support for business has been accessed • Undertaken proactive discussions with our landlords and supp
Slide 10: Key Metrics
KEY METRICS H1 2021 H1 2020 Managed LFL sales 75.2% Revenue and other income £45.6m £167.1m Adjusted (loss)/profit before tax £(22.2)m £17.9m Adjusted EPS (33.33)p 26.17p Net debt £187.4m £178.9m* All figures relate to continuing operations *Net debt figure is at 28 March 2020. Net debt excludes lea
Slide 11: Group Performance
GROUP PERFORMANCE AUGUST – APRIL - JUNE JULY CLOSED REOPENING SEPTEMBER Commentary TRADING £m £m £m • April – June reflect the period of full Revenue and other income 1.2 6.0 38.7 lockdown when the entire estate was closed Operating costs* (17.5) (9.6) (36.7) • Operating costs are shown net of Opera
Slide 12: Geographical Split of Managed Sales
GEOGRAPHICAL SPLIT OF MANAGED SALES No of Sites Invested LFL Index Commentary Rural 25 103.3 • Figures reflect the benefit of the Suburban 35 84.0 balanced nature of the Fuller’s Outside M25 Managed Pubs and Hotels business Urban 18 88.3 Total • A further 22 pubs remain closed 78 91.5 and another si
Slide 13: A Resilient Business
A RESILIENT BUSINESS Commentary AUGUST SEPTEMBER • August was a four week month and 2020 2020 Total trading included nine days of Eat Out to Help Out Managed • September was a five week month, Revenue 14.5 19.9 34.4 which included the final four days of Eat Out to Help Out Operating profit* 1.4 2.9
Slide 14: Strong Liquidity Position
STRONG LIQUIDITY POSITION Available facilities and cash at year end • Net debt at 26 September 2020 of £187.4m excluding 26 September 28 March leases 2020 2020 • Working capital started to rebuild following our phased reopening programme Bank debt available facility • Bank facilities of £292m, £26m
Slide 15: Strong Balance Sheet
STRONG BALANCE SHEET UNDERPINNED BY AN EXCELLENT ESTATE • High quality asset base H1 2021 £m • 92% of Fuller’s estate is freehold by book value • Property portfolio was last revalued in 1999 Property, plant & equipment 607.5 • The Estate is well balanced with 56% sitting outside Right-of-use assets
Slide 16: Current Financial Position
CURRENT FINANCIAL POSITION • Proven ability to quickly return to profitability and cash generation, assuming sensible social distancing rules are in place • Balanced estate helps to reduce exposure to risk in city locations, while office workers gradually return • Tight management of stock levels le
Slide 17: Outlook
OUTLOOK • Fuller’s is well-placed to emerge in a strong position as the UK reopens, improved test and trace is implemented, and vaccination programme gets underway • Clear, long-term strategy remains unchanged with a focus on delicious food, a vibrant portfolio of drinks, beautiful bedrooms and outs
Slide 18: Appendix: Costs During Closure
APPENDIX: COSTS DURING CLOSURE April - June CLOSED H1 2021 £m Commentary Revenue and other income 1.2 ▪ Operating profit [x] due to Cost of sales (0.5) • Revenue primarily consisted of rental impact of refurbishments income on unlicensed premises Staff costs (20.4) • £16.8 million of staff costs wer
Slide 19: Appendix: A Focused Pubs and Hotels Business
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 20: Appendix: Fuller's Estate
APPENDIX: FULLER’S ESTATE 28 Mar Acquired 26 Sept Acquired/ 26 Nov Within 2020 /new Disposed Transfers 2020 (disposed) 2020 the M25 Managed Pubs & 217 - (3) (1) 213 (1) 212 58% Hotels Tenanted Inns 177 - - 1 178 (2) 176 28% Total Fuller’s 394 - (3) – 391 (3) 388 44% The Stable 14 - (14) – - – - Tota
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