Investor Presentation October 2014

Report
Investor Presentation
October 2014
1
Disclaimer
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What We Do
•Meat based retailer with 21 retail stores in Yorkshire,
Lincolnshire, Nottinghamshire & Derby
• Vertical integration. In house processing, warehousing and
logistics
• Varied product offer, Competitive pricing, Loyal customer
base.
• 65% Raw Meat; 35% hot food to go
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Retail stores
8 Legacy Stores - 41% of total sales.
Individual shop performance is
extremely consistent with a very
loyal customer base.
3 Markets - 12% of total sales. Markets in city
centres continue to trade well, whilst footfall to
smaller town centre based markets has been on
the decline in recent years.
9 Newer stores -47% of total sales. All
new stores are now running at
profitable levels.
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In House Processing & Distribution
Cold storage
Frozen storage
Cutting
De-boning
Packing & labelling
Wholesale &
catering
Sausage & burger
production
Own fleet of
refrigerated trucks
Delivery to own
stores & catering
customers
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Retail Proposition
•Product Variety, Quality & Value
• Pre packaged meats sold in multi deck displays. Up
to 40% cheaper than the supermarkets.
• Hot cooked preparation/hot & ambient serve over
counters – lunchtime takeaway & meals to take
home
• Key lines plus products on offer constantly changing
•Quick distribution/turnover on promoted goods
•Mix & Match Multi Buy Offers
•Satisfied customers returning each week
•Special offers communicated outside front of store
•Market trader experience on the high street
•Tried and tested customer recruitment method
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Varied Product Offer
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Customer Feedback
•
•
90%+ of customers highly rate our quality and value
for money – which is an exceptional performance
underlined by the loyalty of our customer base.*
Aug/Sept
2013
Aug/Sept
2014
%
Change
Weekly Average Customer
Numbers
63.2k
64.2k
+2%
Average Spend
£5.33
£5.79
+8%
Average spend on raw meat is now c. £10 and on hot
food c. £3.70
* Surveys done of c.300 customers in 2009, 2011 & 2013
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Full Year Trading Performance
Actual
2011/12
2012/13
2013/14
Turnover
£18.9m
£18.8m
£21.0m
EBITDA
£0.6m
£0.7m
£1.4m
Net Cash/(Debt)
£(0.2)m
£0.0m
£1.0m
-
0.2p
0.52p
Dividend
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Half Year Trading Performance
Actual Half Year
2012
2013
2014
Turnover
£9.3m
£9.8m
£11.8m
EBITDA
£0.6m
£0.5m
£0.9m
Net Cash/(Debt)
£(0.2)m
£0.34m
£9.75m*
-
0.09p
0.1p
Dividend
* net cash excluding placing monies is £1.4m
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Key points – Interim Results to July 2014
•Like for Like (LFL) sales up 12% in the 6 months to the
end of July (2013: +5%).
•Overall sales have increased to £11.8m (2013: £9.8m).
•Gross profit increased 21% to £5.2m (2013: £4.3m).
•Gross margin up at 44.1% (2013: 43.9%).
•EBITDA significantly improved at £0.9m (2013: £0.5m).
•PBT more than doubled at £0.7m (2013: £0.3m)
•Earnings per share up to 0.874p (2013: 0.473p)
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LFL Sales Performance
Like for Like Sales Analysis :
2014/15
H1
Q1
Q2
Total
Stores
17%
7%
12%
Markets
22%
6%
14%
Total
18%
7%
12%
First 8 weeks 2014/15
H2
2013/14
Stores
5%
11%
Markets
3%
2%
Total
5%
10%
Growth Strategy
• First New Store for 2014
o Opened on 21st March
o Started well with potential to improve further
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Opportunities for 2014 and beyond (1)
Growing the business:
Relocate & Centralise Factory Operations & Head
Office
o Create a factory Shop
o Increase capacity to accommodate expansion
o Improve efficiency
Start Accelerated Store Opening Programme
Throughout 2015
o New CEO
o Invest in human resources and infrastructure to deliver
growth
o Target 200 shops in 8 years
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Opportunities for 2014 and beyond (2)
Growing the business:
Profitable roll out plan based on new store model
o £250k Capex
o Sales £20k per week
o £100k EBITDA per annum
New locations being identified in different regions
o Initially reviewing adjacent regions to Yorkshire
o New factory operations can support up to 60 stores
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Continuous Improvements to Core Business
Continue to drive retail performance going forward via:
Quality of the Hot Food Offer to improve footfall
o Training programme for cooks to improve consistency &
quality of ready to eat food
o Area Supervisors employed to audit standards
o New sandwich offer introduced and selling well
Improving the training and succession planning for
shop managers
o The best managers can improve results dramatically
o New Assistant managers have been identified and trained
o Apprentices are being employed & trained.
Using tactical promotions to improve sales
o Tactical bonuses to reward profitable sales growth
o New Pack sizes introduced e.g. 3 for £20 has increased
average spend
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Appendix – Listing & Board details
AIM Listed PLC April 2008
• Large Institutional shareholders
Arrowgrass
Isis
Unicorn
Hargreave Hale
Schroders
• Directors holding
44%
13.2%
9.1%
9.2%
7.8%
4.5%
21%
Board Members
Richard Rose (Chairman) –Chairman at Booker, Anpario and AO World Plc
Kevin Boyd (Managing Dir) –started as a butcher/manager at Crawshaws
Lynda Sherratt (Finance Dir) –previously Littlewoods & Ford
Colin Crawshaw (Buying Dir) –pre listing owner/manager of Crawshaws
Mark Naughton-Rumbo (Non Exec) –previously CEO Whittards.
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