Slide 1: Interim Results 2010
Interim Results 2010 11 March 2010 “Record half year profits, a successful refinancing and the reinstatement of a dividend”
Slide 2: Highlights – Six Months to 24 January 2010
Highlights – Six Months to 24 January 2010 • Turnover up 4.1% to £488.1m • Profit before tax up 41.4% to £36.2m • Profit before tax and exceptional items up 17.5% to £36.2m • Earnings per share up 40.0% to 17.5p • Adjusted earnings per share before exceptional items up 9.4% to 17.5p • Free cash flow
Slide 3: Average Sales Per Pub Week
Average Sales Per Pub Week (including VAT) £000 30.6 31.0 30.1 29.9 29.9 30.0 29.5 29.0 29.0 28.0 28.2 28.0 27.0 26.4 26.0 24.7 25.0 24.0 23.0 22.0 21.0 20.0 2002 2003 2004 2005 2006 2007 2008 2009 H1 H1 2009 2010 Sales remain resilient 3
Slide 4: Like for Like Sales/Profits
Like for Like Sales/Profits % H1 2010 H1 2009 2009 2008 2007 2006 Bar +0.1 +2.7 +2.5 -4.3 +3.3 +2.2 Food -2.1 +2.0 -0.4 +7.9 +12.6 +3.6 Machines +14.1 -7.9 -7.5 -5.8 +2.7 -1.4 Total LFL +0.1 +1.9 +1.2 -1.1 +5.6 +2.0 sales LFL +1.3 -4.0 -1.7 -6.6 +7.0 +5.9 profits Like for like profit growth and stro
Slide 5: Pub Operating Margin
Pub Operating Margin • Gross margin maintained • Operating costs – Higher repairs, 3.5% of sales, in line with historical average – Lower utilities. Lower rates, improved consumption – Depreciation slightly lower as a % to sales Ongoing operating margin in line with 2009 5
Slide 6: Operating Margin - Summary
Operating Margin - Summary H1 H1 H1 H1 FY 2010 2010 2009 2009 2009 £000 % of Sales £000 % of Sales % of Sales Turnover 488,132 - 468,718 - Pub Operating Profit 90,270 18.5 86,897 18.5 18.7 Head Office Costs (17,604) (3.6) (16,726) (3.6) (3.6) Share Incentive Plan (1,537) (0.3) (1,246) (0.3) (0.3) De
Slide 7: Allocation of Resources
Allocation of Resources £162m £124m £92m Dividends £90m Buybacks £59m Capex £39m £34m 2005 2006 2007 2008 2009 H1 H1 2009 2010 Focus on new openings 7
Slide 8: Movement in Net Borrowings
Movement in Net Borrowings • Free cash flow decreased to £21.3m (2009: £39.2m) – Decline in cash from operations due to exceptional working capital benefits last year – Increased investment in existing pubs • Overall increase in net borrowings of £2.8m, in the six months since year end (2009: decrea
Slide 9: Debt Position
Debt Position H1 H1 FY 2010 2009 2009 Net debt/ EBITDA 2.7 3.2 2.7 Interest cover (times) 3.9 2.6 2.4 Fixed charge cover (times) – statutory 1.8 1.6 1.5 - excluding 2.4 2.1 2.0 depreciation Further improvement in performance 9
Slide 10: Cash Flow
H1 H1 FY Cash Flow 2010 2009 2009 Cash from operations 60,916 78,741 171,850 Interest (15,779) (20,624) (34,857) Tax (11,029) (10,077) (20,497) Investment in existing pubs (9,440) (4,839) (10,999) Investment in own shares (SIP) (3,409) (4,036) (6,003) Free cash flow 21,259 39,165 99,494 Dividends -
Slide 11: Banking facilities
Banking facilities • New 4 year non-amortising £530m facility from end of March 2010 replacing the existing facility due Dec 2010 – Existing and new banks in syndicate of 11 – Oversubscribed, received >£600m credit approved commitments • £20m overdraft facility, giving £550m total facilities • £400m
Slide 12: Dividends
Dividends • 19p total dividend (2009:0p) – 12p full year dividend paid in full now – 7p special dividend to partly compensate for no dividend last year – Dividend cover excluding special dividend is 1.5 times • Paid on 1st April 2010 – To shareholders on the register at 19 March 2010 Dividends reins
Slide 13: Continued Improvement
Continued Improvement • Over 190 pubs are in the CAMRA Good Beer Guide • Continued strong growth of traditional ales • Training awards and diplomas • Strong growth in our clubs: Steak, Curry & Sunday • New products added including Monster energy drink, Carlsberg and Tuborg • Raised over £3m for CLIC
Slide 14: Property
Property • 2009/10 H1 17 new pubs • 2008/09 H1 21 new pubs • 2009/10 FY c50 planned • Property prices and rent review settlements remain lower than historic trends • Currently 41% freehold • Long term target to open 250 pubs over next 5 years Opportunities remain for profitable investment 14
Slide 15: 2010 H2 Outlook
2010 H2 Outlook • Open from 7am for breakfast from 28th April • Cost outlook remains benign. For example, over 75% of rent reviews in last 12 months at nil increase • Higher interest charges of c 8% going forward • Opportunities for profitable investment • Staff retention leading to improved standar
Slide 16: Appendices
Appendices • A 10 Year Financial Graphs • B 10 Year Trends • C Capital Trends • D ROC/CROCCE/ROE • E ROC/CROCCE/ROE Calculations • F Net Debt year on year movement 16
Slide 17: 10 Year Summary
10 Year Summary Appendix A Number of Pubs Average Sales Per Pub Week (including VAT) £000 731 746 750 32 30.6 694 714 30.1 29.9 29.9 29.5 655 671 30 29.0 635 643 657 28.0 28.2 608 28 26.4 600 522 26 24.7 23.5 24 22.7 450 428 22 20 300 18 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 H1 2009 H1 2
Slide 18: JDW - Financial Trends
Appendix B JDW - Financial Trends 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 H1 2010 H1 Sales per pub (£000) 1,040 1,093 1,169 1,239 1,246 1,283 1,354 1,333 1,344 666 661 LFL sales (%) +7.5 +5.0 +4.0 +3.6 -0.6 +2.0 +5.6 -1.1 +1.2 +1.9 +0.1 LFL profits (%) +7.0 +3.8 -0.9 -0.7 -4.0 +5.9 +7.0 -6
Slide 19: Capital Trends
Appendix C Capital Trends 2009 2010 Financial Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 H1 H1 Size (sq.ft.) - Openings 3526 3808 3721 4317 4176 3928 3855 3615 3359 3418 4123 Number of openings 94 87 45 28 13 9 18 23 39 21 17 % which are freehold 75 53 56 43 54 22 61 57 33 38 12 Freehold aver
Slide 20: ROC/CROCCE/ROE
ROC/CROCCE/ROE Appendix D 2010 H1 2009 H1 • P&L return on capital 11.5% 10.5% • Crocce 10.7% 10.3% • P&L return on equity 19.2% 16.7% • Cash return on equity 13.0% 12.2% 20
Slide 21: ROC/CROCCE/ROE
Appendix D1 ROC/CROCCE/ROE H1 H1 2010 2009 £000 £000 Profit after tax (a) 24,375 17,348 Add: interest (b) 12,637 16,716 Profit pre-interest (c) 37,012 34,064 Add: deferred tax 833 (647) Depreciation 22,180 22,191 Cash return (d) 60,025 55,608 P&L return on capital [(c)/average (g)] 11.5% 10.5% C
Slide 22: ROC/CROCCE/ROE
Appendix E ROC/CROCCE/ROE H1 FY 2010 2009 £000 £000 Shareholder funds per balance sheet 181,897 167,693 Add: cum losses on disposal 37,260 37,260 : hedging provision 48,258 35,996 (e) 267,415 240,949 Add: net debt (f) 392,830 390,024 Capital employed (g) 660,245 630,973 Add: deferred tax provision 6
Slide 23: Movement in Net Borrowings
Movement in Net Borrowings Appendix F Jan 2010 V Jan 2009 Overall increase in net borrowings of £2.8m from July 09 (2009: decrease of £4.8m). Compared to last half year, the difference of £7.6m represents: £m Cash operating profit 3.5 Working capital (21.3) Cash from operations (17.8) Interest 4.8 T