Preliminary results for the 12 months ended 30 September 2016 - PowerPoint PPT Presentation

PATISSERIE HOLDINGS PLC Preliminary results for the 12 months ended 30 September 2016 November 2016 0

Contents Highlights 2 Financial Performance 4 Operational Progress 10 Current Trading and Outlook 18

HIGHLIGHTS

Full Year to 30 September 2016 - Highlights Revenue up 13.3% to £104.1m (2015: £91.9m) • EBITDA up 18.1% to £22.2m (2015: £18.8m) • Pre tax profits up 18.2% to £17.2m (2015: £14.6m) • Diluted EPS growth of 20.1% to 13.60 pence per share • (2015: 11.32 pence per share) Operating cash flow of £22.0m, with year end cash • balances of £13.3m Final dividend of 2.00 pence per share proposed • 21 new stores opened all funded from free cash flow • Flagship stores opened in Belfast, London Oxford  Street and Resorts World Birmingham Over £1m invested in new and existing bakery • facilities improving efficiency and increasing capacity Significant investment in people with a number of • senior appointments made 3

FINANCIALS

Financial Overview DELIVERING STRONG GROWTH AND HIGH LEVELS OF CASH CONVERSION WITH THE ABILITY TO CONTINUE TO SELF-FINANCE NEW STORE ROLLOUT Revenue (£m) Group EBITDA (£m) 20.4% 21.3% 20.0% 20.0% 24 21.0% Year Ended 30 September 2016 21 22.2 18.0% 18 18.8 15.0% 110 15 104.1 15.3 12.0% 12 100 12.0 9.0% 91.9 9 90 6.0% 30.2 6 3.0% 76.6 3 80 29.0 -- -- 70 FY2013A FY2014A FY2015A FY2016A 60.1 25.3 EBITDA EBITDA margin 60 Cash flow from operations (£m) 17.3 50 110.0% 99% 98% 40 100.0% 73.9 20 87% 22.0 90.0% 62.9 30 76% 18.3 51.3 80.0% 15 42.8 20 70.0% 60.0% 10 10 10.5 50.0% -- 8.4 40.0% 5 FY2013A FY2014A FY2015A FY2016A 30.0% Patisserie Valerie Other Brands -- 20.0% FY2013A FY2014A FY2015A Cash from operations Cash conversion 5

Group Income Statement 12 months 12 months ended ended 30 September 30 September 2016 2015 £’000 £’000 Total Total % change Annual revenues exceed £100m for • Continuing operations the first time at £104.1m up £12.2m Revenue 104,141 91,925 +13.3% or 13.3% (2015: 91.9m) Cost of sales (22,832) (20,884) Gross profit 81,309 71,041 Gross margin of 78.1% (2015: • +14.5% Administrative expenses (64,099) (56,477) 77.3%) reflecting improvements in supply chain EBITDA 22,161 18,761 +18.1% Tight cost control resulting in • EBITDA margin 21.3% 20.4% EBITDA margin of 21.3% (2015: Operating profit 17,210 14,584 +18.2% 20.4%) Finance expense (6) (27) Profit before income tax 17,204 14,557 +18.2% Income tax expense (3,469) (3,152) Profit before tax up £2.6m or 18.2% • to £17.2m (2015: 14.6m) Profit after tax and total comprehensive income for the year 13,735 11,405 +17.0% attributable to equity holders Diluted EPS growth of 20.1% to • Earnings per share 13.60 pence per share (2015: 11.32 Basic earnings per share (pence) 13.74 11.41 +20.4% pence per share) Diluted earnings per share (pence ) 13.60 11.32 +20.1% 6

EBITDA Analysis Commentary EBITDA Bridge In year store openings contribute • 24,000 additional £1.6m with full year effect of prior year openings 456 426 510 - 1,196 contributing additional £1.5m. 290 - 22,000 84 Key supply chain contracts • 1,496 renegotiated in year resulting in £1.2m improvement to gross £'000 20,000 1,626 profit or 0.8%. 22,167 Impact of National Living Wage • of £0.5m however this has been 18,000 18,762 offset by more efficient rostering of staff and tight cost control. 16,000 £0.5m increased costs of higher • 2015 EBITDA New stores openings Full year impact of PY openings Closed stores GP improvements Pay increases Pay rostering Rent increases Other 2016 EBITDA rents from rent reviews. 7

Group Cash Flow 12 months 12 months ended ended 30 September 30 September 2016 2015 £’000 £’000 Operating cash flow of £22.0m up • Cash flows from operating activities £3.7m. Profit before income tax 14,557 17,204 Excellent EBITDA to cash • Adjusted by: Depreciation and amortisation 4,177 conversion rate of 99% 4,951 Net finance charges in the consolidated statement 27 6 of comprehensive income Capital expenditure in the year of • Other non-cash charges 271 333 £8.7m consisting of £5.6m in new Changes in working capital (690) stores, £1.3m in existing estate, (536) £1.2m in bakery facilities and Cash generated from operations 21,958 18,342 £0.6m on infrastructure. Interest paid (6) (29) Income tax paid (3,378) (2,787) Net cash generated from operating activities 15,526 Dividends of £2.7m paid in the 18,574 • year reflecting £1.7m for FY2015 Net cash used in investing activities (8,012) (8,726) and interim dividend for FY2016 Net cash generated used in financing activities - (2,670) of £1.0m Net increase in cash and cash equivalents 7,514 7,178 Cash and cash equivalents at the beginning of the (1,419) 6,095 year Cash and cash equivalents at the end of the year 6,095 13,273 8

Group Balance Sheet At 30 At 30 September September 2016 2015 £’000 £’000 ASSETS Non-current assets Intangible assets 17,797 17,847 Strong balance sheet maintained • Property, plant and equipment 36,498 32,679 solely funded by equity and 54,295 50,526 reserves – no external Current assets borrowings. Trade and other receivables including 12,900 11,657 prepayment Inventories 4,862 4,436 Cash and cash equivalents 13,273 6,095 Cash balance at year end of 31,035 22,188 • £13.3m - well positioned to self- Total assets 85,330 72,714 fund ongoing roll-out programme and acquisitions. EQUITY AND LIABILITIES Total equity 78,195 66,698 Final dividend of 2.00 pence per • Non-current liabilities Deferred tax 2,054 1,934 share (total of £2.0m) proposed. 2,054 1,934 Current liabilities Trade and other payables 5,081 4,082 Total liabilities 7,135 6,016 85,330 72,714 Total equity and liabilities 9

OPERATIONAL PROGRESS 10

Store Roll Out 21 new stores opened in the year • all funded from operating cash flows Formats include: • Brasserie (5) • Full Service (10) • Counter (6) • Strategically selected new • locations which have favourable rents and strong sales, including: Preston • Durham • Cheshire Oaks • Bradford • Chippenham • Bury • Doncaster • Camberley Bradford • 11

Store Roll Out (continued) Expansion outside England • continues with tenth store opened in Scotland and first store opened in Northern Ireland. Flagship stores opened in Belfast, • Resorts World Birmingham and London Oxford Street. Six Debenhams stores opened in • the year. Arrangement enables entry to high streets on Belfast Wandsworth favourable rent terms. Two additional motorway service • station stores opened, Cambridge and Peterborough, taking total to four. London Oxford Street Resorts World Birmingham 12

Infrastructure New stand alone bakery opened in • Leith, Edinburgh to supply stores in Scotland and Northern England Belfast store equipped with bakery • to enable expansion in Northern Ireland Programme of replacement to • logistics fleet completed Number of senior employees • recruited into the business 13

E-Commerce Member Numbers 2016 2015 Growth % Cake Website was relaunched in January 2015 • Club 361,300 306,000 55,300 18.1% with virtual tours and “create -a- cake” Facebook features. 70,000 46,800 23,200 49.6% Twitter 15,900 12,800 3,100 24.2% Instagram 12,900 7,700 5,200 67.5% Online sales up 23% to £3.8m (2015: • £3.1m) Social media numbers continue to grow • with Cake Club members up 18% to 361,300 members. 14

Product Development A number of products trialled and • launched in year Glorious Gluten Free range launched • following customer demand Corporate menu introduced online • Afternoon Tea now selling in all locations • with a number of variants. Festive menu launched in November • including hot drinks, chocolate fudge cake and festive afternoon tea. 15