Shepherd Neame Limited Charles Stanley Securities Lunch 16 April - - PowerPoint PPT Presentation

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Shepherd Neame Limited Charles Stanley Securities Lunch 16 April 2013 Results for the 26 weeks ended 29 December 2012

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Results : 26 weeks to 29 December 2012 Turnover Operating Profit before Basic EPS Dividend Profit tax before per share Exceptionals 2012 £69.2m £6.7m £4.5m 26.2p 5.00p 2011 £67.4m £6.7m £4.8m 26.8p 4.90p

+2.6%

• 6.2%
• 2.2%

+2.0% Level

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One off, non recurring costs of £0.4m

• 10x increase in glass recycling
• Waverley TBS collapse

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Cash invested in capital expenditure £8.3m (2011 : £11.7m) with £1.9m (2011 : £1.5m) realised on disposal of assets

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SN operate 353 (2011 : 355) pubs of which 307 (2011 : 310) are tenanted or leased and 46 (2011 : 45) managed

• Tenanted Performance :

– Lfl +0.4% (2011 : -0.5%) – Average EBITDAR/pub +3.9% (2011 : +2.4%)

• Retail Performance :

– Lfl total +2.9% (2011 : +10.2%) – Lfl food +3.5% (2011 : +14.6%) accommodation +5.8% (2011 : +9.0%) liquor +2.4% (2011 : +8.5%)

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We have carried out refurbishment of rooms at the Sun Inn, Faversham; Royal, Deal and Marine, Tankerton

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We continue to invest in developing the food offer in our pubs

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We have invested £1.2m (2011 : £0.8m) in tenanted estate developments, in particular Crayford Arms, Nailbox, Zetland Arms and Orange Tree

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Total beer volume was down 4.0% (2011 : +6.8%)

• Excellent growth from Spitfire and Asahi
• Improved trend in Bishops Finger
• Strong performances from smaller brands : Whitstable Bay and 1698
• Launch of Classic Collection

Industry On Trade beer sales -4.7% in 2012 and Off Trade -7.5% in Q4

• Wet weather
• Weak consumer spending
• Olympics ‘boom’ did not materialise

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We have engaged famous comedy duo Armstrong and Miller’s ‘Spitfire Pilot’ characters to be ambassadors for Spitfire

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Export Sales

• We are working with new partners in key beer territories that will

result in expansion of export sales of Spitfire, Bishops Finger and other ales Kingfisher

• We have agreed a phased exit from brewing Kingfisher Beer over

three financial years

• The brand represents 18.8% of own beer volume (2011 : 20.1%)

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Industry Matters

• A statutory Code of Practice for letting of tied pubs
• Beer Duty Escalator

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Board Randall Nicol Bill Brett Retires - September 2013 Starts - September 2013

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Strategy

• Invest in pubs
• Invest in own brands
• Improve offer to the customer
• Invest to improve efficiency and reduce cost inflation