Fuller, Smith & Turner P.l.c. Class A · LSE:FSTA
Fuller, Smith & Turner P.l.c. Class A — FY2021 Earnings Presentation
26 slides from Fuller, Smith & Turner P.l.c. Class A's earnings presentation, July 2021
Slide 1: Full Year Results for the 52 Weeks Ended 27 March 2021
Bel & The Dragon, Wendover FULL YEAR RESULTS FOR THE 52 WEEKS ENDED 27 MARCH 2021
Slide 2: Agenda
AGENDA Setting the Scene Review of Current Trading Strategy and Progress Financial Review Outlook The Business Case Full Year Results for the 52 weeks ended 27 March 2021 2
Slide 3: Setting the Scene
SETTING THE SCENE • An extraordinary year that both started and ended with our entire pub estate closed, and with onerous social distancing restrictions for the 16 months to date • Our clear and consistent strategy, purpose and vision, aimed at delivering sustainable returns for the long term, is as
Slide 4: Current Trading
CURRENT TRADING • All pubs open, but trading under government restrictions • Balanced business with various geographical areas taking very different recovery trajectories • Managed like for like sales for 12 weeks to 3 July 2021 at 76% of 2019 levels, reflecting continued impact of social distancing
Slide 5: Current Trading
CURRENT TRADING Sales and Contribution • Sales have shown strong progression on a weekly 6,000 2,000 basis 1,800 5,000 • Initial phase of reopening focused on sites with 1,600 significant outdoor trading areas 1,400 4,000 • The business has been managed with a laser like 1,200 focus on daily trading
Slide 6: A Focused Pubs and Hotels Business with a Clear Purpose, Vision and Values
A FOCUSED PUBS AND HOTELS BUSINESS WITH A CLEAR PURPOSE, VISION AND VALUES Our purpose: – Happy teams, serving happy customers Our vision: – We create exceptional experiences full of style and spirit – characterful pubs and hotels where everyone feels they belong… and where people leave happier than
Slide 7: A Strategy for the Long Term
A STRATEGY FOR THE LONG TERM • To deliver a distinctive customer experience across the whole Fuller’s estate • To grow by carefully targeted acquisitions and developments that enhance our premium business • To build a leaner cost base by investing and improving processes • Supporting these objective
Slide 8: Environmental Social Governance
ENVIRONMENTAL SOCIAL GOVERNANCE Life is too good to waste Our environment is too good to waste A road to net zero delivered through energy and waste management, reducing our carbon footprint Our communities are too good to waste Supporting the communities in which we operate through charity links an
Slide 9: Continued Investment in Our Iconic Estate
CONTINUED INVESTMENT IN OUR ICONIC ESTATE • Accelerated investments in outside areas and gardens have made alfresco drinking and dining a year-round feature and delivered extended trading space • Opened one new pub and completed 10 transformational schemes – Opened The White Horse at Wembley, adjace
Slide 10: Our People Front and Centre
OUR PEOPLE FRONT AND CENTRE • Provided emotional and financial support, plus enhanced access to online training for team members during the months of lockdown • Rightsized and redeployed our pub teams to counteract the impact of the covid pandemic and protect jobs • Successfully completed the Transi
Slide 11: Systems and Digital Communications That Work for Us and Our Customers
SYSTEMS AND DIGITAL COMMUNICATIONS THAT WORK FOR US AND OUR CUSTOMERS • Accelerated roll out of digital solutions including Order & Pay and improvements to central booking system • Digital marketing campaigns with high engagement and additional focus on domestic tourism to maximise the staycation op
Slide 12: Tenanted Inns
TENANTED INNS • Our high-quality Tenanted Inns continue to play an important strategic role in our balanced estate • 175 well-invested, freehold pubs in great locations – operational efficiencies due to estate size • Highly cash generative part of our company • Predominately in rural and suburban lo
Slide 13: Financial Review
FINANCIAL REVIEW The Anglers, Teddington
Slide 14: Coronavirus Financial Response
CORONAVIRUS FINANCIAL RESPONSE • On average sites were only open for 29% of the financial year • Severe restrictions in place while the business was open and operating • Strong focus on cash: – Government support for business has been accessed – Undertaken proactive discussions with our landlords an
Slide 15: Key Metrics
KEY METRICS FY 2021 FY 2020 Managed LFL sales 64.3% Revenue and other income £73.4m £319.7m Adjusted (loss)/profit before tax £(48.7)m £19.4m Adjusted EPS (72.09)p 22.13p Net debt* £218.1m £178.9m Net debt* at 30 June 2021 £150.6m All figures relate to continuing operations *Net debt excludes lease
Slide 16: Divisional Results
DIVISIONAL RESULTS Commentary Total £m • Trading reflects seven months of full Managed closure and the remainder was under various trading restrictions Revenue 64.0 • Managed Pubs & Hotels found new Operating loss* (26.1) ways to maximise trade under the guidelines and majority traded Tenanted profi
Slide 17: Strong Liquidity Position
STRONG LIQUIDITY POSITION Net debt • Net debt at 27 March 2021 of £218.1m excluding leases 28 March 27 March 30 June 2020 2021 2021 • At year end bank facilities of £292m, £26m of debentures. Total £318m Club facility £20.8m net of cash • Average cost of gross borrowings for FY 2021 of £27.5m 2.5% (
Slide 18: Cashflow
CASHFLOW Commentary FY 2021 £m • The working capital outflow reflects Adjusted EBITDA (13.1) the temporary effect of the closure of Working capital (5.1) the business Interest (4.5) • The working capital position reverses as the business reopens Tax 3.4 • Capex includes significant Pension (2.3) dev
Slide 19: Strong Balance Sheet
STRONG BALANCE SHEET UNDERPINNED BY AN EXCELLENT ESTATE • High quality asset base FY 2021 £m • 91% of Fuller’s estate is freehold by book value Property, plant & equipment 590.2 • Property portfolio was last revalued in 1999 Right-of-use assets (IFRS 16) 81.9 • Well-balanced estate with 56% of prope
Slide 20: Current Financial Position
CURRENT FINANCIAL POSITION • Balance sheet strengthened further post year end through £52m equity raise • Net debt, excluding leases, as at 30 June £151m, below pre- pandemic levels • Debt facilities extended post year end, earliest maturing debt now February 2023 • Liquidity-based covenant suite ag
Slide 21: Outlook
OUTLOOK The Kingswood Arms, Banstead
Slide 22: Outlook
OUTLOOK • Priorities for the next 12 months include – Delivering on our strategic goals – Continued investment in our estate – Refinancing our bank facilities – Implementing the new central finance system – Completing our employer brand and digital customer journey projects – Carefully monitoring an
Slide 23: 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 24: Slide 24
Slide 25: Appendix: Fuller's Estate
APPENDIX: FULLER’S ESTATE 28 Mar 27 Mar 7 Jul Within 2020 New Disposed Transfers 2021 Disposed 2021 the M25 Managed Pubs & 217 1 (5) (2) 211 (2) 209 57% Hotels Tenanted Inns 177 – (4) 2 175 – 175 28% Total Fuller’s 394 1 (9) – 386 (2) 384 44% The Stable 14 – (14) – – No. of Bedrooms 1,028 – – – 1,02
Slide 26: Appendix: A Geographically Balanced Business
APPENDIX: A GEOGRAPHICALLY BALANCED BUSINESS Full Year Results for the 52 weeks ended 27 March 2021 26
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