Presentation Transcript

1. Investor Presentation April 2014
2. Disclaimer This presentation has been issued for information purposes by Crawshawplc (the “Company”). It is being distributed by WH Ireland Limited (“WH Ireland”), in its capacity as broker to the Company. WH Ireland is regulated by the Financial Condust Authority. The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000.   The information in this presentation is subject to updating, completion, revision, further verification and amendment without notice. This presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, or act as an inducement to enter into any contract or commitment therefore. This presentation is only being distributed and made available to persons of the kind described in Article 19(5) (investment professionals) and Article 49(2) (high net worth companies, unincorporated associations, etc.) of Part IV of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“FPO”) and any investment activity to which this presentation relates is only available to and will only be engaged with such persons. Persons who do not have professional experience in matters relating to investment or who are not persons to whom Article 49 of the FPO applies should not rely upon this presentation. No representation or warranty, express or implied, is made or given by or on behalf of the Company or WH Ireland, any of their respective directors, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for such information or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation. Accordingly, neither the Company nor WH Ireland nor any of their respective directors, officers, employees, advisers, associated persons or subsidiary undertakings shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon the statement or as a result of any admission in, or any document supplied with, this presentation or by any future communications in connection with such documents and any such liabilities are expressly disclaimed. WH Ireland Limited is the adviser to the Company and no one else (whether or not a recipient of these slides) and will not be responsible to anyone other than the Company for providing the protections afforded to customers of W. H. Ireland Limited for providing advice (financial or otherwise) in relation to the Company. WH Ireland’s responsibilities as the Company's Nominated Adviser and Broker, respectively, under the AIM Rules of the London Stock Exchange will be owed solely to the London Stock Exchange plc and not to the Company, to any of its directors or any other person. Prospective investors interested in investing in the Company are recommended to seek their own independent financial advice from a person authorised for the purposes of the Financial Services and Markets Act 2000. This presentation and its contents are confidential and should not be distributed, published or reproduced in whole or in part or disclosed by recipients to any other person. This presentation is not for distribution outside the United Kingdom and, in particular, should not be distributed to persons with addresses in Canada, Australia, Japan, Republic of Ireland, Republic of South Africa, or to persons with addresses in the United States of America, its territories or possession or to any citizen thereof or to any corporation, partnership or other entity created or organized under the laws thereof. Any such distribution could result in the violation of Canadian, Australian, Japanese, Irish, South African or United States of America law.
3. 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
4. Retail stores
5. 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
6. 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
7. Varied Product Offer
8. 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.* 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
9. Trading Performance
10. Key points – Final Results to January 2014 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%)
11. LFL Sales Performance Like for Like Sales Analysis :
12. What’s Driving Performance? Management have introduced Improvements in IT communications, sales reporting and analysis CCTV installed and monitored in each store Clocking systems at each store Sales promotions New products The ‘Horsegate’ scandal appears to have made a difference to the consumer We believe that Butchers are now perceived as selling quality traceable products 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
13. Growth Strategy First New Store for 2014 Opened on 21st March Started well with potential to improve further
14. Growth Strategy New Store Model
15. Opportunities for 2014 and beyond (1) Growing the business: New Store Openings a minimum of 2 new shops a year 3 likely in 2014 Develop an Online offer Currently finalising research stage Gap in the market for value offer coupled with quality Relocate & Centralise Factory Operations Create a factory Shop Increase capacity to accommodate expansion and online Improve efficiency
16. Opportunities for 2014 and beyond (2) Continue to drive retail performance going forward via: Quality of the Hot Food Offer to improve footfall Training programme for cooks to improve consistency & quality Area Supervisor employed to audit standards New sandwich offer introduced Improving the training and succession planning for shop managers The best managers can improve results dramatically New Assistant managers have been identified and trained Apprentices are being employed & trained. Using tactical promotions to improve sales Sellers employed at stores to improve turnover New Pack sizes introduced – 3 for £20
17. Appendix – Listing & Board details AIM Listed PLC April 2008 Large Institutional shareholders 23% Isis 9.1% Unicorn 8.5% Schroders 5.5% Directors holding 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.