easyhotel plc Results for the year ended 30 September 2017

Transcription

1 Results for the year ended 30 September 2017

2 Introduction Guy Parsons Chief Executive Officer p2

3 Highlights Delivering Growth Revenue +39.7% Adjusted EBITDA +48.3% PBT before one-offs +43.0% Market Outperformance Owned & Franchised outperforming market New openings above 85% occupancy Accelerated Development 6 hotels 1 /613 new rooms opened 921 Owned 2 & Leased rooms in pipeline 1,798 Franchised rooms in pipeline 1 Includes Liverpool (opened 1 November 2017) 2 Includes projects announced as at date of presentation p3

4 Current Trading Current trading in line with Board s expectations We expect our hotels to outperform our competitors due to our value proposition Market Outlook European tourism has strong long-term structural growth drivers (Deloitte/STR - 29th European Hotel Investment Conference November 2017) The outlook is broadly positive for the UK hotels sector 2018 forecast is marginally stronger than expected in March, and we now anticipate a further 2.3% RevPAR growth. (PWC - UK hotels forecast 2018) FY 2016/17 - Continued Market Outperformance Owned hotels Like-for-like sales: +13.7% YoY RevPAR vs. market: +14.5pts Franchised hotels: Like-for-like Sales: +8.6% p4

5 Financial Review Marc Vieilledent Chief Financial Officer p5

6 Summary for year ended 30 September % Total system sales 1 up 39.2% to 29.67m (2016: 21.32m) Total revenue up 39.7% to 8.42m (2016: 6.02m) Adjusted EBITDA 2 up 48.3% to 2.30m (2016: 1.55m) with increase in adjusted EBITDA margin to 27.3% (2016: 25.7%) PBT before one-offs up 43.0% to 1.65m (2016: 1.15m) Earnings per share 0.7p (2016: 1.4p) on an enlarged share base Cash generated from operations increased to 2.22m (2016: 0.85m) Proposed final dividend of 0.22p per share (2016: 0.22p per share), making the total dividend for the year 0.33p per share (2016: 0.33p per share) Robust asset backed balance sheet; Net Assets 70.2m (2016: 33.2m) 1 Total system sales is the full amount that the customer pays for owned and franchised hotels, including initial sign-on fees paid by franchisees to the Company 2 Adjusted EBITDA represents Earnings before Interest, Taxation, Depreciation and Amortisation, adjusted for pre-opening costs related to the development of This excludes South Africa one-off fee hotels, organisational restructuring costs, share based payments and other non-recurring items p6

7 Profit Before Tax & One-Offs 15% FY2017 FY2016 Change % Revenue 8,416 6, Gross profit* 5,008 3, Gross profit margin 59.5% 64.6% -5.1pts Central costs (2,708) (2,344) 15.5 Adjusted EBITDA 2,300 1, Adjusted EBITDA margin 27.3% 25.7% 1.6pts Depreciation (831) (447) 86.2 Interest 116 (141) n/a FX gains and losses n/a Profit before tax & one-offs 1,649 1, * Excluding impact of franchisee early termination and pre-opening costs p7

8 Profit after Tax and One-Offs 15% FY2017 FY Profit before tax before one-offs 1,649 1,153 One-offs* (789) (63) Profit before tax 860 1,090 Taxation (217) (213) Profit for the year *One-offs Pre-opening & development costs (218) (89) (Loss) / profit on disposal (240) Old Street 283 Share Based Payments (172) (161) Other non-recurring net expenses (159) (96) Total (789) (63) Liverpool This excludes South Africa one-off fee p8

9 Owned Hotel Performance Owned Hotel Revenue FY % FY2016 Growth % 6,604 4, Adjusted EBITDA 3,240 2, Profit before tax 2,633 2, Occupancy % 82.1% ADR p9

10 Franchised Hotel Performance Franchised Hotel Revenue 15% FY2017 FY2016 Growth % 1,812 1, Adjusted EBITDA 1, Profit before tax 1, Occupancy % 74.5% ADR

11 Cash Flow Analysis 36.6m ( 23.1m) 4.3m 2.2m ( 0.3m) ( 0.1m) 33.3m ( 26.2m)* 13.7m 7.1m * * estimate p11

12 Financing Update Equity raise October 2016, equity placing of 38.0m (before expenses) Bank Debt New five-year facility of 12.0m bearing interest at Libor +2.50% refinancing previous 7.2m bank facility New euro-denominated mortgage facility of 8.3m bearing interest at EURIBOR +2.25% for development of new Barcelona hotel Future Commitments Owned - Liverpool, Barcelona, Sheffield, Leeds, Ipswich & Cardiff Leased Oxford & Newcastle Refurbishment of Croydon and Glasgow Exploring financing options, including new equity & debt, to fund future development opportunities Owned development 30.5m Leased development 1.1m Refurbishment 1.5m Spain financing 6.9 Net pipeline Commitments 26.2m p12

13 Strategy Update Guy Parsons Chief Executive Officer p13

14 Strategy at the Heart of our Business Model p14

15 Customer Understanding Budget hotels are chosen because of location and price Consumers choose them because they re close to where they need to be Customer needs are relatively simple: a great bed, well trained, friendly staff and well-designed rooms A brand that is easy and simple to do business with Maximising Revenues We don t have restaurants in our hotels we use every available space to sell bedrooms We offer a consistent, good quality room at a low price. As a result, our occupancies are high Revenues are maximised via the revenue management and ecommerce strategy Successful implementation of hotel management system p15

16 Over 2,300 owned & leased rooms under negotiation with c.1,000 rooms approved by the Board Owned & leased potential for c.12,000 rooms in UK and Europe A Market Opportunity FY 2017/18 FY 2018/19 Beyond Liverpool (Nov 2017) Newcastle Barcelona Sheffield Leeds Ipswich Lisbon Bernkastel-Kues The Hague-Scheveningen Reading Belfast Maastricht Cardiff Oxford Bur Dubai Istanbul Iran Sri Lanka 2,719 rooms committed in total Further c.1,300 franchised rooms under negotiation Franchised potential for c.15,000 rooms in UK & Europe p16

17 easyhotel Birmingham Site announced: 21 Jan 2016 Purchase completion: 29 July 2016 Opening date: 16 Feb 2017 Total number of rooms: 86 7 months refurbishment period Construction cost inflation and listed building conversion added to project costs New design hotels performing better than original business case Expected 12-13% mature ROCE (FY s) Total Revenue 624 Contribution 302 Contribution margin 48.3% Occupancy 88.6% ADR %+ occupancy in 44% of days since opening TripAdvisor 4.5* #4 of 118 Hotels in Birmingham p17

18 Delivering Shareholder Returns Previous Current Owned 6-8k EBITDA* per room Investment 50-60k per room 15% ROCE* Leased Not considered Owned 8-10k EBITDA* per room Investment 60-70k per room 12-13% ROCE* Leased 2-4k EBITDA* per room Investment up to 5k per room High returns cash on cash Franchised fee* per room High margin Increased brand presence Franchised 600-1,000+ fee* per room High margin Increased brand presence Blended ROCE of 15% * Target at maturity p18

19 Post Year End Update Owned Hotel Development 92 rooms in Old Street - pre-app submitted for office extension Opened 78-room hotel in Liverpool in November 2017 Refurbishment of Glasgow & Croydon in first half of FY2018 Construction underway in Barcelona, Sheffield, Leeds & Ipswich Owned & Leased Pipeline Site acquired in Cardiff to develop a new 120-bedroom freehold easyhotel, subject to planning permission Agreed to take over a 25-year lease of the 104 room Tune hotel in Newcastle from December 2017 Franchised Pipeline Further 162 rooms (two hotels) under development by Benelux franchisee, both opening in the 2017/18 financial year: 87-room easyhotel in The Hague-Scheveningen 75-room easyhotel in Maastricht City Centre p19

20 Summary 1 Accelerated growth in FY2016/17 2 Market outperformance expected to continue 3 Strong pipeline in place 4 Trading in line with Board expectations 5 Exploring financing options to fund future development p20

21 Appendix p21

22 Appendix A: Openings easyhotel Birmingham 278 owned rooms opened 86% occupancy* Birmingham 86 rooms Manchester 115 rooms Liverpool 78 rooms (opened post period) 334 franchised rooms opened 92% occupancy* Brussels 107 rooms Amsterdam Arena 131 rooms Amsterdam Zandaam 96 rooms easyhotel Brussels * FY 2016/17 Occupancy p22

23 Appendix B: Profit and Loss FY 2017 FY System sales 29,672 21,315 Revenue 8,416 6,024 Cost of sales (3,258) (2,151) Gross profit 5,158 3,874 Administrative expenses (4,478) (2,833) Analysed as: Adjusted EBITDA 2,300 1,551 Non-recurring costs (398) 187 Hotel pre-opening and development costs (218) (89) Depreciation and amortisation (831) (447) Share based payments (172) (161) 681 1,041 Profit from operations 681 1,041 Net finance income/(costs) Profit before taxation 860 1,090 Taxation (217) (213) Profit for the year p23

24 Appendix C: Balance Sheet FY 2017 FY Non-Current Assets Intangible assets 1, Property, plant and equipment 51,143 30,463 Long-term deposits Total non-current assets 52,793 30,612 Current Assets Trade and other receivables 2,724 1,243 Cash and cash equivalents 33,255 13,659 Total current assets 35,979 14,902 Total assets 88,772 45,514 Non-Current Liabilities Trade and other payables Bank borrowings 11,666 - Deferred tax liability Total non-current liabilities 12, Current Liabilities Trade and other payables 5,805 4,706 Bank borrowings 360 7,200 Corporation taxation Total current liabilities 6,196 12,025 Total liabilities 18,591 12,305 Total net assets 70,181 33,209 Equity Share capital 1, Share premium 64,776 28,591 Merger reserve 2,750 2,750 EBT reserve (1,067) (1,067) Currency translation reserve (80) - Retained earnings 2,797 2,310 Total equity 70,181 33,209 p24

25 Appendix D: Cash Flow Statement FY 2017 FY Profit before taxation for the year 860 1,090 Adjustments for: Loss / (profit) on disposal of property, plant and equipment 240 (283) Depreciation of property, plant and equipment Share based payments Finance income (207) (249) Finance expense Operating cash flows before movement in working capital 1,987 1,367 Increase/(decrease) in net trade and other payables 521 (454) Cash generated from operations 2, Corporate tax paid (149) (22) Net cash flows from operating activities 2, Finance income Finance expense (338) (200) Net cash generated from operations 2, Purchase of property, plant and equipment (22,709) (9,228) Proceeds from property, plant and equipment VAT on investing activities (416) (1,008) Net cash used in investing activities (23,125) (9,646) Inflow from equity raise 36,564 - Repayment of loans (7,560) - Net proceeds from new loans 11,890 - Dividend paid (328) (270) Net cash utilised by financing activities 40,566 (270) Net increase/(decrease) in cash and cash equivalents 19,657 (9,069) Cash and cash equivalents at the beginning of the period 13,659 22,636 Exchange impact on cash and cash equivalents (61) 92 Cash and cash equivalents at the end of the period 33,255 13,659 p25

26 Appendix E: Hotel listing Hotel location Rooms Country Ownership Dubai Jebel Ali 216 UAE Franchisee Frankfurt 132 Germany Franchisee Amsterdam Arena 131 The Netherlands Franchisee Berlin Hackescher Markt 125 Germany Franchisee London Earls Court 109 United Kingdom Franchisee Den Haag 109 The Netherlands Franchisee Rotterdam City Centre 107 The Netherlands Franchisee Brussels 107 Belgium Franchisee London Victoria 105 United Kingdom Franchisee Amsterdam Zaandam 96 The Netherlands Franchisee Amsterdam City 80 The Netherlands Franchisee London Heathrow 82 United Kingdom Franchisee Sofia 57 Bulgaria Franchisee Budapest Oktogon 59 Hungary Franchisee Luton 68 United Kingdom Franchisee London Paddington 47 United Kingdom Franchisee London South Kensington 34 United Kingdom Franchisee Zurich 33 Switzerland Franchisee Edinburgh 29 United Kingdom Franchisee Basel 24 Switzerland Franchisee Old Street 92 United Kingdom Owned Glasgow 124 United Kingdom Owned Manchester 115 United Kingdom Owned Croydon 103 United Kingdom Owned Birmingham 86 United Kingdom Owned Liverpool 78 United Kingdom Owned 26 Hotels Countries and 16 cities 20 Franchised, 6 Owned p26

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