Slide 1: FY25 Results Presentation
FY25 Results Presentation 52 weeks ended 4th May 2025 1
Slide 2: Agenda
Agenda Overview Gavin Peck, CEO Financial Review Rosie Fordham, CFO Strategy Update Gavin Peck, CEO Summary Gavin Peck, CEO Q&A 2
Slide 3: Overview
Overview Gavin Peck, CEO >, Time weu see™
Slide 4: A year of significant progress
A year of significant progress New strategy launched • Clear ambition – to be the favourite destination for affordable screen- free activities for the whole family • Clear plans – already delivering tangible progress; momentum building • Clear targets – sales in excess of £375m and EBITDA margin of
Slide 5: Financial Review
Financial Review Rosie Fordham, CFO 5
Slide 6: FY25 Financial highlights
FY25 Financial highlights Stores Revenue £277.0m LFL sales +2.3% LFL Sales +0.8% (FY24: £282.6m) (FY24: +0.6%) (FY24: -0.9%) Pre-IFRS 16 Adjusted EBITDA £9.5m Profit before tax £8.3m Net Cash £4.1m (FY24: £6.0m) (FY24: £6.9m) (FY24: £1.6m) Strong product Significant YOY margin growth cost savings +2
Slide 7: LFL sales ahead of non-food retail sector
LFL sales ahead of non-food retail sector FY25 LFL Sales vs BRC Q4 FY25 LFL Sales vs BRC Q4 FY 8.0% 4.0% 2.3% 6.9% 2.0% 0.8% 7.0% 6.4% 0.0% 6.0% -2.0% -0.1% 5.0% -4.0% 4.0% -6.0% 3.0% -8.0% 2.1% -10.0% 2.0% -12.0% 1.0% -14.0% -12.1% 0.0% 0.0% Stores Online Total BRC (Non-food) - LFL Stores Online To
Slide 8: Strong product margin growth
Strong product margin growth FY25 Product gross margin rate growth of 210bps to 59.4% (FY24 : 57.3%) Product Margin - £m and rate £164.5 £162.1 £161.3 FY24 Margin rate 57.3% COGS saving 1.7% Product mix & reduced clearance 1.5% 59.4% 57.6% 57.3% FX 0.4% Freight -1.0% FY25 Margin rate 59.4% FY23 FY24
Slide 9: Significant cost savings drove improvement in profitability
Significant cost savings drove improvement in profitability FY24 EBITDA 6.0 • Lower sales YoY - 52 wk period (vs 53 wk in FY24) & store optimisation Lower margin from year-on-year sales decline (3.2) Higher product gross margin percentage 5.6 • Significantly increased product margin Variable web run
Slide 10: Continued optimisation of our store estate
Continued optimisation of our store estate FY25 FY24 Stores at beginning of period 511 526 Opened 7 9 Closed (15) (24) Relocated* 4 5 Stores at period end 503 511 • Higher quality more profitable portfolio • 98% of the estate is profitable (vs 96% in FY24) • Average payback for new stores around 18
Slide 11: Improved working capital and cash generation
Improved working capital and cash generation Summary cashflow FY25 FY24 Variance • FY25 stock £35.0m Operating profit £m 13.1 £m 11.4 £m 1.7 (FY24: £31.4m) Other operating cashflows (5.7) (8.3) 2.6 Net movement in working capital 2.2 (4.3) 6.5 • Year-end cash at bank: £4.1m Net Cash from Investing A
Slide 12: Well positioned to offset cost headwinds & deliver profit growth in FY26
Well positioned to offset cost headwinds & deliver profit growth in FY26 Actions being taken Cost headwinds Expect to deliver • Strategic initiatives • £4.5m NLMW • FY26 EBITDA* £11.0m to drive sales growth increases (FY25: £9.5m) • Product margin • £2.0m increase in improvements • Net Cash employer
Slide 13: Strategy Update
Strategy Update Gavin Peck, CEO 13
Slide 14: THE WORKS
THE WORKS -
Slide 15: Our new strategy underway
Our new strategy underway “The favourite destination for affordable, Our Ambition screen-free activities for the whole family” • Sales in excess of £375m Our 5 Year Financial Goals • EBITDA margins of at least 6% Our Strategic Drivers 15
Slide 16: Continuing to fulfil our purpose and establish our clear brand positioning
Continuing to fulfil our purpose and establish our clear brand positioning 16
Slide 17: Grow our Brand Fame
Grow our Brand Fame Progress made in FY25 Plans underway for FY26 • Completed brand project and the • Embedding Time Well Spent and creation of strapline brand positioning through #TimeWellSpent marketing strategy • Launched new customer-focused • Extended ranges in larger stores approach to campaig
Slide 18: Strategy in Action: New Customer Campaigns
Strategy in Action: New Customer Campaigns • More customer-focused events • Championing screen-free activities • More lifestyle and emotion vs. product and price • All-year round reasons to visit 18
Slide 19: Improve Customer Convenience
Improve Customer Convenience Progress made in FY25 Plans underway for FY26 • Improved product availability and • Undertaking store space trials stock allocations • Further improving store standards • Restructured retail leadership – through “What Good Looks Like” more consistent store standards init
Slide 20: Strategy in Action: New Store Openings
Strategy in Action: New Store Openings • Up to 60 net new stores in next 5yrs • Payback of <2yrs • Opportunities across range of formats and locations in the UK • Landlords increasingly seeing the benefits of our proposition 20
Slide 21: Be a Lean & Efficient Operator
Be a Lean & Efficient Operator Progress made in FY25 Plans for FY26 • Significant improvement in margin • Further margin rate improvement rate • Material cost savings delivered, with cost transformation project • £2m+ annualised cost savings complete • Rolled out new EPoS software • Systems refresh
Slide 22: Strategy in Action: New Mezzanine in our DC
Strategy in Action: New Mezzanine in our DC • £0.6m capex investment • Reduces peak capacity challenges faced • Supports improved efficiencies => payback of around 1yr 22
Slide 23: Multiple levers in place to drive growth in sales to £375m+
Multiple levers in place to drive growth in sales to £375m+ Existing channel growth: £75m+ £375m+ Online and multi- Store space channel CX optimisation Improved in-store All year- execution round proposition +£25m Increased spend from FY30 New existing Sales customers customers c.60 net new stores F
Slide 24: Action to drive EBITDA margin improvement
Action to drive EBITDA margin improvement LFL store sales growth on a largely fixed cost c.200bps base product margin improvement Ongoing optimisation of EBITDA margin of at store portfolio least 6% supported by.. Reduced cost to serve ratio £5m+ reduction through growth in in operating cost Average
Slide 25: Our Investment Case
Our Investment Case A clear customer offering, with a refreshed strategy, building momentum and significant untapped growth potential in the value sector 1. Highly relevant purpose 2. Clear position in the value 3. Much loved by customers and meaningful ambition retail sector, with all year- with si
Slide 26: Summary – a year of significant progress
Summary – a year of significant progress New strategy launched • Clear ambition – to be the favourite destination for affordable screen-free activities for the whole family • Clear plans – already delivering tangible progress; momentum building • Clear targets – sales in excess of £375m and EBITDA m
Slide 27: Questions
Questions >, Time weu see™
Slide 28: Appendix
Appendix 28
Slide 29: Basis of Financial Information
The prior period comparatives have been restated to reflect adjustments wholly Basis of Financial related to IFRS 16 Lease accounting. Information Adjusted profit figures exclude adjusting items which comprise non-recurring costs and adjustments with respect to the IFRS 16 accounting standard. 29
Slide 30: Statutory Income Statement
Statutory Income Statement 52 weeks to 4 May 2025 53 weeks to 5 May 2024 Result before Result before Adjusting Adjusting Adjusting Adjusting items items Total items items Total £000 £000 £000 £000 £000 £000 Revenue 277,039 — 277,039 282,585 — 282,585 Cost of sales (227,697) 4,408 (223,289) (234,505)
Slide 31: Rec to pre-IFRS16 EBITDA
Rec to pre-IFRS16 EBITDA FY25 FY24 Variance Variance % of % of £m £m £m % revenue revenue Revenue 277.0 282.6 (5.5) (2.0) Less: Cost of goods sold (112.5) (120.5) 8.0 6.6 Product gross margin 164.5 59.4 162.1 57.3 2.5 1.5 Store payroll (49.9) (18.0) (50.2) (17.8) 0.3 0.5 Store property and establish
Slide 32: Statutory Balance Sheet
Statutory Balance Sheet FY25 FY24 £000 £000 Non-current assets Intangible assets 2,168 1,866 Property, plant and equipment 12,583 12,358 Right-of-use assets 61,830 57,703 Deferred tax assets 3,514 4,036 80,095 75,963 Current assets Inventories 34,985 31,354 Trade and other receivables 6,149 8,384 De
Slide 33: Important notice
This presentation is being made only to and directed at: (a) persons who have professional experience in matters relating to investments falling within Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”); or (b) high net worth entities, and other pe