Upload
brenda-martin
View
222
Download
0
Tags:
Embed Size (px)
Citation preview
Whitbread - the leisure business
October 2001
John Banham
Chairman
Whitbread - the leisure business
David Richardson
Finance Director
Whitbread
•Successful demerger of Pubs and Bars
•Significant progress in future Whitbread
Pubs and Bars
•Completed May 2001
•Headline £1,625m
•Shareholder gain £487m
•Gain taken directly to reserves
•Share consolidation
Operating profit
£m %
Marriott/Swallow 42.4 + 5.7Travel Inn 31.5 + 9.4Pub restaurants 44.2 + 10.0High Street restaurants 3.1 + 19.2Sports, health & fitness 16.0 + 24.0
future Whitbread divisions 137.2 + 10.1
Pubs and Bars 30.5Beer and other drinks 11.3Central Services, etc. (7.0)
Operating profit 172.0 (25.7)
6 months to 1 September 2001 vs 6 months to 2 September 2000
Segmental analysis future Whitbread
£m £m
6 months to September 2001 6 months to September 2000 Sales EBITDA Profit Assets Sales EBITDA Profit Assets
HotelsMarriott/Swallow 204 63 421,243200 58 401,165Travel Inn 88 39 3244980 36 29 398
RestaurantsPub restaurants 299 58 44803282 54 40 784High St restaurants 237 12 3168220 10 3 156
Sports, health & fitness 80 26 1644266 22 13 416
Total – future Whitbread908 197 1373,105848180 1252,919
Proforma future Whitbread
£m £m %
6 months 6 months Growth
to 1 September to 1 September
2001/2 2000/1
Sales 908 848 7.1
Operating profit Hotels 74 69 7.3
Restaurants 47 43 10.5
David Lloyd Leisure16 13 24.0
Central costs (7) (6) (20.6)
future Whitbread operating profit 130 119 9.4
Estimated interest (30) (28) (7.5)
Estimated profit before tax 100 91 10.0
Analysis of Whitbread cash flow
£m £m £m
Continuing Past
Total Whitbread Whitbread
Cash flow from operations 180.2 149.9 30.3
Dividends received 0.2 0.2 –
Interest costs etc. (34.9) (33.0) (1.9)
Taxation (36.7) (18.0) (18.7)
Capital expenditure (162.0) (147.1) (14.9)
Acquisitions & disposals 462.1 462.1
Dividends (113.3) (31.3) (82.0)
Net cash inflow/outflow 295.6 (79.3) 374.9
6 months to 1 September 2001
Exceptional costs
£m
Disposal of Pubs and Bars– transaction costs 14.4– restructuring costs 5.9
Loss on sale of business 3.7
Loss on sale of fixed assets0.1
24.1
Deferred tax
£m
Liability on FRS19 basis at 3 March 2001 165.4
Transferred with Pubs and Bars (38.7) 126.7
Deferred taxes provided in half year11.0
Deferred taxes as at 1 September 2001137.7
Future capex
£m May estimate 1st half 2nd half Full year 2002/3
Marriott 75-90 50 20 70 45-60Travel Inn 70-80 25 35 60 65-80Restaurants 90-110 45 30 75 45-65David Lloyd Leisure 50-60 25 30 55 45-85Other 10-25 5 5 10 5-15
295-365 150 120 270 200-300
Continuing businesses estimates
Confirmation
•Standard information for half year– Hotels– Restaurants– Sports, health & fitness
Whitbread - the leisure business
David Thomas
Chief Executive
Whitbread’s value agenda
•Strong first-half trading
•Potential of new business is clear
•Good progress on value levers
•Action now to enhance future value
Like-for-like sales growth
•Marriott + 2.3%•Travel Inn + 3.0%•Brewers Fayre + 4.2%•Beefeater + 5.0%•David Lloyd Leisure + 20.0%
By major brand
Like-for-like sales growth
•Marriott/Swallow + 1.3%•Travel Inn + 3.0%•Pub restaurants + 4.5%•High Street restaurants + 2.7%•Sports, health & fitness + 18.2%
By reporting segment
Hotels
Business hotelsMarket outperformance by Revpar
-10
-5
0
5
UK hotel market
Marriott
+ 3.5
+ 5.2
- 4.3
– 9.4
London Provinces%
•Marriott yield premium up from 17% to 20%
Hotels
The London effect
• London Provinces Total
•Occupancy 77.4% 74.6% 75.4% - 1.7%
•Achieved room rate£118.50£69.87£83.34+
3.3%
•Yield £91.74 £52.15 £62.83+
1.0%
•Operating profit – 8.9% + 36.6%+ 20.6%
* Core Marriott
*
Hotels
MarriottProfit per room improvement
8.4
7.9
7.5 7.6 7.7 7.8 7.9 8 8.1 8.2 8.3 8.4 8.5 £k
August 2001
March2001
+6.3%
Hotels
Swallow proves its value
•10 conversions (1,469 rooms)
•Occupancy + 1.3%
•Achieved room rate + 8.4%
•Yield + 10.4%
First tranche
Travel Inn
•Like-for-like sales + 3.0%
•Like-for-like occupancy 86.0%
•Rooms growth 14,186 to 15,106
•100% guarantee
•Internet bookings
Brand performance
Hotels
Restaurants
Pub restaurants
By segment + 4.5%
Brewers Fayre + 4.2%
Beefeater + 5.0%
Like-for-like sales *
* Excluding Travel Inn
Restaurants
Brewers Fayre
Total sales + 6.8%
Like-for-like sales + 4.2%
Operating margin growth 16.8% to 18.5%
Operating profit + 17.6%
Restaurants
Beefeater
Comparable Beefeater Sales+6.0%
Operating profit +7.4%
Total Beefeater Sales +5.0% Operating profit – 8.5%
Out and Out 27 sitesAverage sales growth of 15%
Restaurants
High Street restaurants growth
•Sales + 8.0%•UK like-for-like sales – Pizza Hut + 6.9%
– Costa + 6.2%– Café Rouge+ 5.3%– TGI Friday’s + 2.8%– Bella Pasta – 0.9%
Total UK + 4.4%– Germany – 7.3%
•Total like-for-like sales + 2.7%
•Operating profit + 19.2%
Restaurants
Improving asset quality
•Disposal of tail sites
•Finalise High Street brand review
High Street brand review
•Pelican brands to be sold(75 Café Rouge, 65 Bella Pasta, 8 Mamma Amalfi, 5 others – total 153)
•Flexible mechanism – manage outside Restaurants division
•Whitbread team to focus on major brands
and value drivers
Restaurants
Sports, health & fitness
Sports, health & fitness
•Sales +21%
•Like-for-like sales +18%
•Operating profit +24%
Sports, health & fitness
UK health & fitness operatorsLike-for-like sales
13.0
10.5
7.5
6.0
20.0
15.0
0 5 10 15 20
David Lloyd
Holmes Place
LA Fitness
Dragons
Fitness First
Esporta
%
6 months to 30 June
6 months to 30 April
6 months to 30 June
3 months to 30 September
6 months to 30 June
6 months to 31 August
Sports, health & fitness
David Lloyd brand
•Membership growth + 12% to 248,000
•Non-fee income + 13%
•Membership retention 78% MAT
Market outperformance
David Lloyd Leisure
•Developing clubs year-on-year profit growth +£4.5m (+250%)
•New clubs - reduced time to maturity
•Pre-opening members average 1,780
Improving club returns
Sports, health & fitness
Like-for-like sales
•Marriott - 4.7%– London -24.6%– Provinces +3.9%
•Travel Inn + 5.6%
•Brewers Fayre + 7.9%
•Beefeater + 5.2%
•David Lloyd Leisure * + 16.7%
September/October
* September only
Trading outlook
•Continue driving returns from existing
assets
•Reduce discretionary and overhead costs
•Flexibility to defer £150m capex – primarily on new site expansion
Management action
future Whitbread
•Strength of major brands
•Strong indications of market
outperformance
•Good progress on value levers
•Prompt response to new circumstances
Prospects
future Whitbread