Transcript Slide 1

Investor Presentation
April 2014
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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 (2 factories)
• 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.
4 Markets - 15% 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 -44% 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.*
Feb/Mar
2013
Feb/Mar
2014
%
Change
Weekly Average Customer
Numbers
64.9k
69.9k
+8%
Weekly Average Spend
£5.18
£6.00
+16%
Average spend on raw meat is now c. £10 and on hot
food c. £3.50.
* Surveys done of c.300 customers in 2009, 2011 & 2013
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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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Key points – Final Results to January 2014
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•
•
•
•
•
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Sales for the year £21.0m (2013: £18.8m)
Full year like for like sales up 11% (2013: 3%)
EBITDA doubled to £1.4m (2013: £0.7m)
Profit before tax £1.0m (2013: £0.3m)
Earnings per share rose to 1.42p (2013: 0.31p)
Net cash £1.0m (2013: £nil)
LFL sales first 12 weeks of current year up 19%
(2013: 1%)
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LFL Sales Performance
Like for Like Sales Analysis :
2013/14
Q1
Q2
Q3
Q4
Total
Stores
2%
10%
14%
22%
12%
Markets
-6%
0%
7%
21%
6%
Total
1%
9%
12%
22%
11%
2014/15
First 12 wks
Stores
18%
Markets
24%
Total
19%
What’s Driving Performance?
•Management have introduced
o Improvements in IT communications, sales reporting and
analysis
o CCTV installed and monitored in each store
o Clocking systems at each store
o Sales promotions
o New products
•The ‘Horsegate’ scandal appears to have made a difference to
the consumer
o We believe that Butchers are now perceived as selling
quality traceable products
o Supermarkets have adopted a strategy of buying only
British meat products
increased price differential.
•Trading environment is better - Customers still want value but
appear to have more money to spend.
• No adverse weather in the period restricting footfall in town
centers
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Growth Strategy
• First New Store for 2014
o Opened on 21st March
o Started well with potential to improve further
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Growth Strategy
• New Store Model
Base
£m
Upside
£m
Sales
1.04
1.30
Margin
0.46
0.57
Overheads
0.34
0.39
EBITDA
0.12
0.18
Capex
0.25
0.25
2.1 Years
1.4 years
Payback
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Opportunities for 2014 and beyond (1)
Growing the business:
New Store Openings
o a minimum of 2 new shops a year
o 3 likely in 2014
Develop an Online offer
o Currently finalising research stage
o Gap in the market for value offer coupled with quality
Relocate & Centralise Factory Operations
o Create a factory Shop
o Increase capacity to accommodate expansion and online
o Improve efficiency
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Opportunities for 2014 and beyond (2)
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
o Area Supervisor employed to audit standards
o New sandwich offer introduced
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 Sellers employed at stores to improve turnover
o New Pack sizes introduced – 3 for £20
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Appendix – Listing & Board details
AIM Listed PLC April 2008
• Large Institutional shareholders
Isis
Unicorn
Schroders
• Directors holding
23%
9.1%
8.5%
5.5%
32%
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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