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October 2014 Investor Presentation 1. Disclaimer This presentation has been issued for information purposes by Crawshaw plc (the “Company”). It is being.

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Presentation on theme: "October 2014 Investor Presentation 1. Disclaimer This presentation has been issued for information purposes by Crawshaw plc (the “Company”). It is being."— Presentation transcript:

1 October 2014 Investor Presentation 1

2 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

3 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

4 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

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 5

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 6

7 Varied Product Offer 7

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. £3.70 * Surveys done of c.300 customers in 2009, 2011 & 2013 8 Aug/Sept 2013 Aug/Sept 2014 % Change Weekly Average Customer Numbers63.2k64.2k+2% Average Spend£5.33£5.79+8%

9 Full Year Trading Performance Actual2011/122012/132013/14 Turnover £18.9m£18.8m£21.0m EBITDA £0.6m£0.7m£1.4m Net Cash/(Debt) £(0.2)m£0.0m£1.0m Dividend -0.2p0.52p 9

10 Half Year Trading Performance * net cash excluding placing monies is £1.4m Actual Half Year201220132014 Turnover £9.3m£9.8m£11.8m EBITDA £0.6m£0.5m£0.9m Net Cash/(Debt) £(0.2)m£0.34m£9.75m* Dividend -0.09p0.1p 10

11 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

12 LFL Sales Performance Like for Like Sales Analysis : 2014/15 H1 Q1Q2Total Stores17%7%12% Markets22%6%14% Total18%7%12% First 8 weeks H2 2014/152013/14 Stores5%11% Markets3%2% Total5%10%

13 Growth Strategy First New Store for 2014 o Opened on 21 st March o Started well with potential to improve further 13

14 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

15 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

16 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

17 Appendix – Listing & Board details AIM Listed PLC April 2008 Large Institutional shareholders44% Arrowgrass 13.2% Isis9.1% Unicorn9.2% Hargreave Hale7.8% Schroders4.5% Directors holding21% 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

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