J D Wetherspoon Plc · LSE:JDW
J D Wetherspoon — FY2021 Earnings Presentation
28 slides from J D Wetherspoon's earnings presentation, Oct 1, 2021
Slide 1: J D Wetherspoon PLC Preliminary Results
J D Wetherspoon PLC Preliminary Results 1 October 2021
Slide 2: Background
Background • Average food hygiene score of 4.97 out of 5 • 774 pubs (out of 787) have a maximum score • £23m spent on bonuses and free shares, 99.6% paid to staff below board level and 89.8% to pub staff • Top Employer UK for 17 consecutive years (Top Employers Institute) • 242 pubs are listed in CA
Slide 3: Financial Summary
Financial Summary 2021 2020 Var% 2019 2018 20172 2016 2015 2014 2013 20122 Revenue 772.6 1,262.0 -38.8% 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 1,197.1 (£m) Like-for-like sales -38.4% -29.5% +6.8% +5.0% +4.0% +3.4% +3.3% +5.5% +5.8% +3.2% (Loss)/profit before tax and property gains a
Slide 4: Average Weekly Sales Per Pub (including VAT)
Average Weekly Sales Per Pub (including VAT) £000 48.0 46.5 48 44.4 46 44 41.7 42 39.0 40 37.4 38 36.0 36 34.0 34.1 34 32.3 31.1 32 30 28 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 3
Slide 5: Underlying (Losses)/Earnings Per Share (pence)
Underlying (Losses)/Earnings Per Share (pence)* pence 76.5 80.0 70.2 66.6 70.0 60.0 48.0 47.6 44.7 43.8 50.0 41.3 35.3 40.0 30.0 20.0 -35.9 -119.2 10.0 0.0 -10.0 -20.0 -30.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 *Underlying earnings/(losses) per share are before exceptional items an
Slide 6: Like-for-like Performance
Like-for-like Performance % 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Bar -42.2 -29.3 +5.8 +5.1 +3.1 +3.3 +1.2 +2.7 +3.8 +2.8 Food -37.4 -30.1 +8.3 +5.1 +5.7 +3.5 +7.3 +12.0 +10.9 +4.8 Fruit/slot -52.1 -20.9 +10.3 +2.9 -1.2 -2.8 -2.8 -3.1 +0.4 -2.8 machines Hotel -27.1 -38.7 +3.9 +2.3 +9.9 +
Slide 7: 10 Year Operating Profit (pre-IFRS16)
10 Year Operating Profit (pre-IFRS16) £m 2021 2020 2019 2018 20171 2016 2015 2014 2013 20121 Turnover 772.6 1,262.0 1,818.8 1,693.8 1,660.8 1,595.2 1,513.9 1,409.3 1,280.9 1,197.1 Pub profit (pre repairs) 82.3 214.2 349.7 338.6 330.6 288.3 285.4 284.4 259.0 245.4 Repairs (63.3) (75.9) (76.9) (71.3)
Slide 8: Summary of Exceptional Items
Summary of Exceptional Items 2021 2020 £000 £000 Operating exceptional items Covid-19 2,762 29,091 Redundancy/Restructuring Payments 6,179 - Gaming machine settlement – (15,890) 8,941 13,201 Exceptional property losses Disposal programme 1,707 8,151 Other property losses Impairment of property, plan
Slide 9: Allocation of Resources
Dividend Allocation of Resources Freehold reversions and investment properties £13m £15m Share buybacks £8m £24m £15m £13m £14m Capex on new and existing pubs £22m £89m £16m £13m £25m £5m £36m £5m £13m £15m £98m £8m £52m £33m £23m £77m £54m £28m £15m £8m £6m £5m £154m £151m £121m £113m £115m £17m £9
Slide 10: Cash Capital Expenditure
Cash Capital Expenditure £m 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 New Openings: Acquisition and development costs: Current year 11.5 18.6 19.8 32.0 27.2 38.6 76.5 64.5 40.4 57.2 Future year 9.6 31.8 7.5 14.4 13.1 16.6 30.5 33.2 12.8 10.4 Freehold reversions and investment 16.9 98.5 77.2
Slide 11: Movement in Net Debt
Movement in Net Debt £m 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Opening Net debt 817.0 737.0 726.2 696.3 650.8 601.1 556.6 474.2 462.6 437.7 Free cash flow 83.3 58.9 (97.0) (93.4) (107.9) (90.5) (109.8) (92.9) (65.3) (91.5) Disposal of fixed assets (2.6) (4.8) (9.3) (4.7) (19.6) (22.5) (0.
Slide 12: IFRS16 – impact
IFRS16 – impact Profit and loss impact Pre IFRS 16 (£m) Post IFRS 16 (£m) Variance (£m) EBITDA (£30.9) £18.7 £49.6 Depreciation (£76.0) (£120.9) (£44.9) Operating loss (£105.1) (£100.4) £4.7 Disposal of leases - £2.2 £2.2 Interest (£47.3) (£66.7) (£19.4) Loss before tax (£154.7) (£167.2) (£12.5) Tax
Slide 13: Property Update
Property Update 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Trading pubs at start of FY 872 879 883 895 926 951 927 886 860 823 Freehold pubs opened 4 2 4 6 9 10 24 31 14 18 Leasehold pubs opened 1 – 1 – 1 6 6 15 15 22 Closures/disposals (16) (9) (9) (18) (41) (41) (6) (5) (3) (3) Total tradin
Slide 14: “It’s a People Thing”
“It’s a People Thing” • 39,025 employees on average in FY2021, increasing to 42,048 by 20 Sept 2021 • Nearly 14,000 employees are shareholders • 96% of hourly paid employees are on guaranteed hours contracts • Recognised as one of ‘Britain’s Top Employers’ in a Guardian publication for 17 consecutiv
Slide 15: ESG (Environmental, social and governance)
ESG (Environmental, social and governance) It is in the company’s interest to run an ethical and sustainable business. Initiatives that have been undertaken include: the replacement of plastic straws with 100% the segregation of waste into seven recycling biodegradable and 100% recyclable paper
Slide 16: Changing sales mix since 2000
Changing sales mix since 2000 100% 6% 5% 4% 4% 3% 2% 90% 18% (£4.2k)* 25% 29% 33% 35% 80% (£6.9k)* (£8.7k)* (£14.6k)* 37% (£11.1k)* (£12.5k)* 70% 60% Hotel/Other Machines 50% Food Bar 40% 76% (£17.2k)* 70% 66% (£19.7k)* 63% (£19.8k)* 61% 60% 30% (£21.4k)* (£25.5k)* (£20.4k)* 20% 10% 0% 2000 2005 200
Slide 17: Taxation
Taxation* Total 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2012 to £m £m £m £m £m £m £m £m £m £m 2021 £m VAT 93.8 244.3 357.9 332.8 323.4 311.7 294.4 275.1 253 241.2 2,727.60 Alcohol duty 70.6 124.2 174.4 175.9 167.2 164.4 161.4 157 144.4 136.8 1,476.30 PAYE and NIC 101.5 106.6 121.4 109.2 96
Slide 18: Current Trading and Outlook
Current Trading and Outlook • Like-for-like sales in the first nine weeks of the current financial year were 8.7% lower than the same weeks in 2019, before the pandemic started. In the last four weeks of the period, like-for-like sales were minus 6.4%. • Excluding airport pubs, where like-for-like s
Slide 19: Questions
wetherspoon Questions
Slide 20: Appendices
wetherspoon Appendices
Slide 21: Appendices
Appendices • A 10 year overview • B 10 year financial trends • C 10 year debt overview • D1 ROC/CROCCE/ROE calculations • D2 ROC/CROCCE/ROE calculations • E Swap maturity profile 20
Slide 22: 10 Year Overview
Appendix A 10 Year Overview Number of pubs £ millions Turnover 1000 1,800 950 1,600 900 850 1,400 800 1,200 1,819 927 951 1,661 1,694 926 1,595 750 886 895 883 879 872 861 1,514 823 860 1,409 1,000 1,262 700 1,281 1,072 1,197 650 800 773 600 600 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 23: 10 Year Financial Trends
Appendix B 10 Year Financial Trends 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Sales per pub (£000) (1) 1,573 2,017 2,075 1,921 1,807 1,694 1,620 1,562 1,476 1,401 EBITDA per pub (£000) (2) (21.7) 139.9 253.3 248.0 229.0 209.2 200.9 204.5 200.9 194.9 Number of pubs 861 872 879 883 895 926 951
Slide 24: 10 Year Debt Overview
Appendix C 10 Year Debt Overview 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Net debt/EBITDA -27.32* 9.48* 3.36 3.39 3.39 3.47 3.37 3.21 2.88 2.96 (EBITDAR - Reinvestment)/Fixed charge -0.21* 1.01* 2.26 2.25 2.21 2.14 1.97 1.79 1.88 1.75 Interest cover (times) --2.85 -1.33 3.72 4.19 3.72 2.92
Slide 25: ROC/CROCCE/ROE
Appendix D1 ROC/CROCCE/ROE 2021 2020 £000 £000 Shareholders equity per accounts 300,344 325,199 Deferred tax balances 16,546 26,521 Interest rate swaps valuations 37,643 82,194 Impairment balances 48,190 44,058 Net book value of revalued assets (4,540) (4,939) Adjusted shareholders equity (a) 398,18
Slide 26: ROC/CROCCE/ROE
Appendix D2 ROC/CROCCE/ROE 2021 2020 £000 £000 EBITDA (cash return) (e) (30,942) 86,150 Depreciation and amortisation (f) (76,474) (79,639) EBIT (g) (107,416) 6,511 Interest (47,260) (40,606) Profit before tax (154,676) (34,095) Current tax (h) (1,166) 588 Profit after cash tax (i) (155,842) (33,507
Slide 27: Swap Maturity Profile
Appendix E Swap Maturity Profile Swap Value From To Weighted Average % £770m 02 July 2018 29 Jul 2021 2.42% £770m 30 July 2021 30 July 2023 1.61% £770m 31 July 2023 30 July 2026 1.10% £770m 31 July 2026 30 June 2028 1.33% £770m 01 July 2028 29 March 2029 1.32% 26
Slide 28: wetherspoon
wetherspoon 27