Investor Presentation
October 2014
1
Disclaimer
This presentation has been issued for information purposes by Crawshaw plc (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.
2
What We Do
•Meat based retailer with 21 retail stores in Yorkshire,
Lincolnshire, Nottinghamshire & Derby
• Vertical integration. In house processing, warehousing and
logistics
• Varied product offer, Competitive pricing, Loyal customer
base.
• 65% Raw Meat; 35% hot food to go
3
Retail stores
8 Legacy Stores - 41% of total sales.
Individual shop performance is
extremely consistent with a very
loyal customer base.
3 Markets - 12% 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 -47% of total sales. All
new stores are now running at
profitable levels.
4
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
5
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
6
Varied Product Offer
7
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.*
Aug/Sept
2013
Aug/Sept
2014
%
Change
Weekly Average Customer
Numbers
63.2k
64.2k
+2%
Average Spend
£5.33
£5.79
+8%
Average spend on raw meat is now c. £10 and on hot
food c. £3.70
* Surveys done of c.300 customers in 2009, 2011 & 2013
8
Full Year 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
9
Half Year Trading Performance
Actual Half Year
2012
2013
2014
Turnover
£9.3m
£9.8m
£11.8m
EBITDA
£0.6m
£0.5m
£0.9m
Net Cash/(Debt)
£(0.2)m
£0.34m
£9.75m*
-
0.09p
0.1p
Dividend
* net cash excluding placing monies is £1.4m
10
Key points – Interim Results to July 2014
•Like for Like (LFL) sales up 12% in the 6 months to the
end of July (2013: +5%).
•Overall sales have increased to £11.8m (2013: £9.8m).
•Gross profit increased 21% to £5.2m (2013: £4.3m).
•Gross margin up at 44.1% (2013: 43.9%).
•EBITDA significantly improved at £0.9m (2013: £0.5m).
•PBT more than doubled at £0.7m (2013: £0.3m)
•Earnings per share up to 0.874p (2013: 0.473p)
11
LFL Sales Performance
Like for Like Sales Analysis :
2014/15
H1
Q1
Q2
Total
Stores
17%
7%
12%
Markets
22%
6%
14%
Total
18%
7%
12%
First 8 weeks 2014/15
H2
2013/14
Stores
5%
11%
Markets
3%
2%
Total
5%
10%
Growth Strategy
• First New Store for 2014
o Opened on 21st March
o Started well with potential to improve further
13
Opportunities for 2014 and beyond (1)
Growing the business:
Relocate & Centralise Factory Operations & Head
Office
o Create a factory Shop
o Increase capacity to accommodate expansion
o Improve efficiency
Start Accelerated Store Opening Programme
Throughout 2015
o New CEO
o Invest in human resources and infrastructure to deliver
growth
o Target 200 shops in 8 years
14
Opportunities for 2014 and beyond (2)
Growing the business:
Profitable roll out plan based on new store model
o £250k Capex
o Sales £20k per week
o £100k EBITDA per annum
New locations being identified in different regions
o Initially reviewing adjacent regions to Yorkshire
o New factory operations can support up to 60 stores
15
Continuous Improvements to Core Business
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 of ready to eat food
o Area Supervisors employed to audit standards
o New sandwich offer introduced and selling well
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 Tactical bonuses to reward profitable sales growth
o New Pack sizes introduced e.g. 3 for £20 has increased
average spend
16
Appendix – Listing & Board details
AIM Listed PLC April 2008
• Large Institutional shareholders
Arrowgrass
Isis
Unicorn
Hargreave Hale
Schroders
• Directors holding
44%
13.2%
9.1%
9.2%
7.8%
4.5%
21%
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.
17
18