results for the year to 28 february 2013ripassetseu.s3.amazonaws.com/ · 2013-05-16 · results for...

Results for the year to 28 February 2013

Transport Estates Civil Engineering Airports Biomass




Richard Butcher Chief Executive Officer

Stobart Estates

William Stobart Chief Operating Officer

Paul Orchard-Lisle Interim Chairman

Andrew Tinkler Chief Executive Officer

Ben Whawell Chief Financial Officer


3


Group Highlights

> Board Structure Review

> Business has reached pivotal stage in our 4 year plan

> Investment stage nearing completion, management focus now on value optimisation and realisation

> Operating divisions achieved growth in underlying PBT of 10%

> Transport profits of £30m in tough market, up 7%

> 3 year Tesco contract commenced with future secured revenue of over £500m from 1 March 2013

> Acquisition of Autologic Holdings and sale of non-core vehicle services operation

> Chilled transport pallet network discontinued, but profitable full load fresh work retained and our chilled warehousing operations

4


Group Highlights

> Over 25% return on investment in the year from Moneypenny portfolio

> Investment in Airport over 90% complete with final infrastructure spend during 2013 to accommodate 5 million passengers per annum

> Airport passenger run rate over 800,000 per annum

> 3 new long term Biomass supply contracts commenced with future secured revenue of over £142m

> Stobart Business Services savings on insurance and legal costs

5


Headline Financial KPI’s

6

£m Year 2013 H2 2013 Restated H1 2013

Restated Year 2012

Revenue 572.4 323.4 249.0 491.7

Underlying operating profit 44.9 25.1 19.8 40.1

Underlying PBT 32.5 19.3 13.2 35.4

Operating cash flow 41.4 25.0 16.4 59.0


Profit & Loss Account

7


Restated Year 2012

Revenue 572.4 323.4 249.0 491.7

Operating expenses - underlying (534.2) (302.9) (231.3) (463.2)

Associates and Joint Ventures 1.0 0.5 0.5 0.5

Gain in value of investment properties 5.2 4.0 1.2 -

Profit on sale and leaseback transaction - - - 5.4

Profit on disposal /gain in value of property asset held for sale 0.5 0.1 0.4 5.7

Underlying operating profit 44.9 25.1 19.8 40.1

Share based payments (1.2) 0.1 (1.3) (0.4)

Finance cost (net) (11.2) (5.9) (5.3) (4.3)

Underlying profit before tax 32.5 19.3 13.2 35.4


Profit & Loss Account

8


Restated Year 2012

Underlying profit before tax 32.5 19.3 13.2 35.4

Profit on disposal of business 8.5 8.5 - -

Credit for business purchase - - - 0.8

New territory/business set up costs (1.0) (0.4) (0.6) (3.4)

Transaction costs (2.8) (1.1) (1.7) (1.8)

Restructuring costs (0.8) 3.4 (4.2) (1.6)

Amortisation of acquired intangibles (0.4) (0.3) (0.1) (0.2)

Profit before tax 36.0 29.4 6.6 29.2

Income tax (5.1) (4.5) (0.6) (1.4)

Profit after tax from continuing operations 30.9 24.9 6.0 27.8

Loss from discontinued operation, net of tax (13.4) (9.5) (3.9) (0.3)

Profit for the year 17.5 15.4 2.1 27.5


Earnings per Share

9

Pence per share Year 2013 H2 2013 Restated H1 2013

Restated Year 2012

Continuing operations 9.0 6.1 2.9 8.5

Discontinued operations (3.9) (2.8) (1.1) (0.1)

Total operations 5.1 3.4 1.7 8.4


Dividend

10

Pence per share Year 2013 H2 2013

H1 2013 Year 2012

Dividend 6.0 4.0 2.0 6.0


Balance Sheet

£m As at

28/02/2013 As at

29/02/2012

Non-current assets 708.9 665.8

Current assets (excluding cash) 133.1 108.2

Cash 32.5 31.0

Loans and borrowings (209.9) (168.3)

HP liabilities (39.0) (28.8)

Defined benefit pension scheme (4.8) -

Trade and other payables (143.8) (114.5)

Tax and deferred tax (25.6) (30.2)

Disposal group - net assets 10.7 7.8

Net assets / equity 462.1 471.0

Gearing - including HP 46.8% 35.3%

Gearing - excluding HP 38.4% 29.1%

11


Net Debt Summary £m Expiry Facility

28/02/2013 29/02/2012

Working Capital

Invoice finance (KBC) 12 month rolling 90.0 16.4 -

Overdraft (RBS) On demand 5.0 3.2 4.6

Autologic (GE) Sep 2015 16.5 3.2 -

Cash n/a - (32.5) (31.0)

Recourse Property Debt

Long term development loan (M&G) May 2020 100.0 100.0 70.0

Committed Revolving Credit Facility (BLME) Feb 2016 20.0 10.0

Issue costs n/a n/a (4.2) (4.2)

Asset Finance

HP loans Various n/a 32.5 28.8

HP loans (Autologic) Various n/a 6.5 -

Other asset loans Various n/a 0.3 2.3

Vendor loan notes May 2014 3.7 3.7 7.8

Total recourse debt 139.1 78.3

Ring fenced investment property loan (GE) April 2017 77.3 77.3 87.7

Total debt 216.4 166.0

12


Cash Flow Analysis

£m Year 2013 H2 2013 H1 2013 Year 2012

Profit before tax from continuing operations 36.0 29.4 6.6 29.2

Adjustments 14.2 0.7 13.5 5.1

Working capital (8.8) (2.6) (6.2) 24.7

Cash generated from continuing operations 41.4 27.5 13.9 59.0

Cash generated from discontinued operations (9.5) (2.6) (6.9) (1.3)

Cash generated from operations 31.9 24.9 7.0 57.7

Tax paid (3.7) (3.1) (0.6) (2.2)

Investing activities (24.7) (5.5) (19.2) (58.2)

Financing activities (17.0) (0.8) (16.2) 61.1

Increase/(decrease) in cash (13.5) 15.5 (29.0) 58.4

13


Working Capital Movement

£m Year 2013 Year 2012

Debtor days movement (3.8) 8.6

Volume impact on trade debtors (1.2) (0.9)

Contract WIP Billed in advance 0.0 7.6

Contract set up costs (4.0) (7.5)

Creditor days / volume impact 4.9 10.0

Delayed creditor payment (5.2) 5.2

Movement in stock (1.9) 0.2

Other timing differences 2.4 1.5

Working capital movement (8.8) 24.7

Feb-13 Feb-12

Debtor days 39.2 35.7

Creditor days 37.0 30.2

14


Capital Expenditure FY13

15

Additions £m

Air

Biomass Transport & Distribution

Estates

Infrastructure

& Civil Eng. Group Total

Land and buildings

London Southend Airport 21.3 - - - - - 21.3

Widnes Phase 2 remediation works - - - 5.8 - - 5.8

Commercial vehicles - 0.4 10.2 - - - 10.6

Plant and machinery 1.3 0.6 1.3 - 0.6 - 3.8

Investment properties (37 Soho Square development) - - - 3.1 - - 3.1

Other capex 0.4 - 2.0 - - 0.1 2.5

23.0 1.0 13.5 8.9 0.6 0.1 47.1

Acquired through business combinations

Autologic:

- Land and buildings - - 13.9 - - - 13.9

- Commercial vehicles - - 7.5 - - - 7.5

- Other - - 1.6 - - - 1.6

- - 23.0 - - - 23.0

Totals 23.0 1.0 36.5 8.9 0.6 0.1 70.1


Expected Capital Expenditure Summary FY14

Approved Capital Expenditure £'000 Comments

LSA Terminal Extension 9,527 To provide capacity for over 5 million passengers

37 Soho Square conversion 1,502 Five luxury apartments, two sold off plan

Total 11,029

Operating Business Capital Expenditure

Vehicles, Plant & Machinery 6,031 Funded by asset finance lines

16


Potential Developments

Potential Developments

Carlisle Airport / Distribution Centre 15,306 Subject to full planning and forward funded

Widnes DC 16,193 Subject to a suitable customer and funding arrangements

31,499

17


OPCO / PROPCO Split Operations

Transport, Biomass, Civils

Property Mgmt Estates, Air

£m 2013 2012 2012 2013

Revenue 564 525 32 16

EBITDA 50 51 17 13

Depreciation (12) (15) (2) (1)

Interest (2) (4) (9) -

Underlying PBT 36 32 6 12

Fixed assets 343 368 348 295

Current assets 138 120 33 24

Net Debt 38 10 178 156

Net debt / EBITDA 0.76 0.20 10.53 12.00

LTV N/A N/A 58.9% 58.3%

Gearing 15.1% 4.6% N/A N/A

Employees 4,881 4,615 301 141

18

Results for the year to 28 February 2013 Results for the year to 28 February 2013

Transport & Distribution

19


Divisional Analysis - Transport & Distribution


Restated Year 2012

Revenue 517.2 295.6 221.6 459.2

Underlying EBITDA 40.9 20.7 20.2 44.3

Underlying PBT 29.7 15.5 14.2 27.7

Margin (%) 5.7% 5.2% 6.4% 6.0%

Margin (%, excl. Autologic) 6.3% - - 6.0%

Utilisation (%) 85.3% 86.0% 84.4% 84.0%

20


Discontinued Chilled Pallet Network > 2008 took Innovate out of administration

> Integrated ambient (Nestlé) and chilled warehousing businesses

> Rental term with 4 cross dock depots ends December 2013

> Staff at these sites were on various T&Cs that Innovate had inherited when they had purchased chilled businesses

> The 4 sites are in wrong locations for a pallet distribution network, closure and redundancy costs were unavoidable as we would not renew leases

> Customer lead times reduced (ie a little bit and often)

> Many other suppliers with small volume services

> Decision made to discontinue Chilled pallet network rather than invest in smaller delivery vehicles

> New contract gain with Arla for milk distribution on fixed contract for Scotland

> Fresh full load network increasing as we concentrate on volume 21


Autologic Holdings

Acquired in August for £12.4m and disposal of non-core vehicle services operation for £11.0m sold in January exceptional profit of £8.5m

Autologic UK Alignment > Head office closure > Specialist transporters have high fixed costs > 46 hours per week used (average) > Needs highly skilled drivers

New Semi-trailers > Normal tractor unit, 80 average hours per week > 15% on average less carrying capacity > Greatly reduced fixed, fuel and driver costs > Resulting in over 40% increase in profit > Will not replace all of the fleet and roll out will take

some time 22


- Autologic Europe Alignment

> Rebranding to Stobart Automotive giving us a good foundation in across Europe

> Giving us a pan-european offering and expansion in other sectors

23


Tesco Contract

> Biggest contract in Stobart history

> 3 year contract securing revenue of over £500m

> Upside potential

24


Estates

25


Divisional Analysis - Estates

£m Year 2013 H2 2013

H1 2013

Year 2012

Revenue 16.8 7.8 9.0 6.7


Underlying PBT 6.5 3.7 2.8 12.4

26


Property Debt

Ring fenced £8m debt repay

£6m Re-allocate

Moneypenny Various

M&G/Others

Widnes

Southend Airport

Carlisle

£14.7m

GE

Terminal

Hotel

GE May 2013 £m Covenant

Asset Values 105.6 -

Debt 70.6 -

Rental Income 7.4 -

Interest 4.2 -

LTV 66.8% 90%

Rental Cover 1.76 1.2

M&G/Others £m

242.1

107.7

8.1

5.1

44.5%

1.59

Total £m

347.7

178.3

15.5

9.3

51.3%

1.67 27

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6 months to 31/08/12

Actual

Year to 28/02/13

Actual

Year to

28/02/13 Forecast

Return on investment 12.2% 26.2% 26.0%

Increase in portfolio value since acquisition (%) 1.8% 4.8% 2.6%

Interest cover 1.44 1.36 2.35

Loan to value (%) 74.8% 71.1% 64.7%

Other relevant KPIs

Current annual rent roll (£m) 7.1 6.8 7.9

Average rental yield (%) 8.9% 8.5% 7.5%

Occupancy rate (%) 98.3% 91.4% 91.7%

Rent collection within 21 days (%) 97.8% 97.1% 98.0%

Weighted average unexpired lease term (years) 6.7 7.2 7.5

income subject to break over next 3 years (%) 6.6% 5.7% 0.5%

Financial KPIs

28


Divisional Analysis - Estates

> Successful integration of Moneypenny portfolio generating return on investment in the year of around 26%

> Reduction of Moneypenny LTV ratio from 83% to around 70%

> Disposal of 22 Soho Square at 10% return after 6 months of ownership

> 37 Soho Square development progressing well and interest in sales

> Sale of units in One Plantation Place for £8.2m

> Planning consent for 20mW Biomass plant at Widnes 3MG site

29


Infrastructure & Civil Engineering


Divisional Analysis - Infrastructure & Civil Engineering

£m Year 2013 H2 2013

H1 2013

Year 2012

Revenue 30.9 14.7 16.2 57.2



Revenue - Internal 19.8 8.2 11.6 44.1

Revenue - External 11.1 6.5 4.6 13.1

31


Divisional Analysis - Infrastructure & Civil Engineering

> Secured 20 year contract for disaster recovery events with income of £2m per annum

> Demand for rail infrastructure work has been flat

> Successful bid for Thames Link bridge strengthening

> Internal valued added work on terminal extension and Widnes site

> Profits and overheads on intragroup work of £1.9m deducted from Group profit

32


Air


Divisional Analysis - Air

£m Year 2013 H2 2013

H1 2013

Year 2012

Revenue 14.9 7.9 7.0 8.8

Underlying EBITDA 0.4 0.2 0.2 (0.2)

Underlying PBT (0.7) (0.4) (0.3) (0.4)

Passengers (number) 723,053 354,895 368,158 46,656

34



> Commenced passenger operations with a run rate of 800,000 passengers per annum

> Secured 4th easyJet based Aircraft for 2013 adding around 250,000 passengers

> Voted top performing easyJet airport for customer satisfaction

> Designated as London’s 6th airport by IATA

> Holiday Inn hotel opened in October

35



> Developed involvement with Aer Arann to drive future airport volumes (trading as Aer Lingus Regional)

> Revenues building from railway station, hotel, taxi, car rentals, currency exchange, retail concessions and car parking

> Terminal extension underway providing capacity for over 5 million passengers

> Strengthening management to support passenger growth

> Increase in business jet movements of 27% in the year and strong growth expected

36


> Not a single airline airport, derisks easyJet influence

> Expectation of annual passengers on current Dublin flights of up to 80,000 per annum

> Incremental revenue and profits to boost future airport value

London Southend Airport Benefits

> Phase 2 will be to replicate the Aer Lingus Regional model using London Southend as the UK base and servicing Scotland, Benelux and Northern France

> We will target a minimum of 300,000 passengers per annum

37


Passengers 000’s

0

20

40

60

80

100

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

38


Biomass


Divisional Analysis - Biomass

£m Year 2013 H2 2013

H1 2013

Year 2012

Revenue 16.4 9.8 6.6 8.4



Tonnes (number) 644,301 411,855 232,446 441,000

Revenue per tonne (£) 25.46 23.79 28.37 19.06

Profit per tonne (£) 6.14 7.77 3.45 2.65

40


> Supply of almost 650,000 tonnes in year, up 46%

> 3 long term supply contracts commenced in Q4 securing future revenue of over £142m

> Return on investment in year of 13%. This is minimum expected in future years

> Supply agreement with Imperative for NEC plant and Airport commencing Q4 2014 delivering £100m of revenue over the contract

> Growth delayed due to legislation and resulting timing of plant development

Divisional Analysis - Biomass

41



Looking Forward


Strategy

> Investment phase complete – Optimisation phase underway

> Opportunities to release value at the right price at the right time and reduce debt

> Management time focused on delivering value

Transport

> Further enhance our Transport Systems functionality

> Drive synergies in T&D with alignment of Autologic

> Develop sustainable solutions to curtail our use of carbon fuels

Estates

> Asset manage investment portfolio and dispose at optimum time to maximise value

Looking Forward – Realising Potential

43


Infrastructure & Civil Engineering > Participation in renewal of UK rail network including Thames Link, cross rail

and High Speed 2 projects

> Civils business to return focus on external customers

Air > Introduction of other carriers at London Southend Airport

> Current year run rate over 1 million passengers from June

> Potential to grow to over 5 million passengers without further investment

Biomass > Work closely with development partners to achieve financial close on

new plants

> Target future supply of 2 to 2.5 million tonnes per annum

Looking Forward – Realising Potential

44

results for the year to 28 february 2013ripassetseu.s3.amazonaws.com/ · 2013-05-16 · results for...

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