novus
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Novus sample documentTRANSCRIPT
London’sleading
restaurant &bar business
“a premium bar & restaurant business built on a
pre-booked sales system”Late Night London
2011 ALMR Best improved operator
2009 ALMR Operations Manager of the Year
2009 ALMR Rising Star Best operator
Coolest Venue Portfolio 2012 (2nd place : Soho House Group & 3rd place: Searcy’s). Also came 4th in ‘Coolest Restaurant’ award
Novus Leisure/“LateNightLondon” Offi cial Finalist Placing 2012Organised by M&C Report, chosen by the pub, restaurant and bar industry itself
2012 Restaurant Awards Shortlisted for Foundation, Covent Garden
recent awards
business description & growth plannovember 2012
30 new sites forGastro barsChampagne & cocktail bars Restaurant bars
Enterprise ValueNovus Leisure is privately owned & was recently acquired by LGV Capital & Hutton Collins for £100m which represents a doubling of enterprise value over the last 3 years.
Top performerprofi t growth from £8m to £17m in last 3yrs.
Growth planStakeholders with management will fund Novus’s 3 year growth plan with an additional £35m for acquisitions.
ResilienceNovus Leisure is a stable and resilient company, with an enviable reputation as a high quality operator.
Balance sheetNovus has low bank debt, generates substantial free cash and is owned and funded by its shareholders.
status
52 premium bars, restaurants & clubs across the UKEnviable balance sheetBusiness funded/owned by equity shareholders Debt/EBITDA less than 2:1 (No bank covenants)£12.4m free cash generated this yearOperating company (A3D2 Ltd) has traded for 14 yearsThe portfolio includes properties with blue-chip landlordsStrong reputation with the Police & Local authorities
summary
not a high street pub or night club
operator
80% of revenue taken
pre-midnight
60% of turnover is
food sales
28average
customer age
80% wet gross
profi t margin
55% of outlets pre-booked
by customers
No
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LfL
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thbest in class operator
Source Management information, Coff er Peach Business Tracker index
Note Novus Leisure’s January LfL includes an extra week of trading
Novus Leisure LfL performance2012 actual: +13%Peach Tracker2012 (forecast): +3%
Cit
y -
ann
ual
sal
es v
s co
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etit
ors
(£
m)1
W
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al s
ales
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om
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rs (
£m
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west end & city dominance
Note
1 Novus fi gures are for FY12F
the business
customers focus on educated urbanites
Source: CACI CII Interactive ACORN Profi le, LEK analysis
Notes
1. Excludes Regions 2. 100 is in line with average
Wealthy Achievers 41
Prosperous Professionals
Aspiring Singles
Educated Urbanites 401
Comfortably off 59
Modest Means 59
Hard Pressed 69
Novus weighting vs UK average (100)2
Urban Prosperity
customers who are wealthy and resilient. most are in professional and managerial roles and many are working hard to further their careers. Jobs are relatively secure, unemployment in these areas is rising less rapidly than elsewhere. People have high incomes and bonuses. these young people have the world at their feet and plenty of money to enjoy it. highly qualifi ed people, mostly living in fl ats in major cities
Educated Urbanites25-35 years old. Resilient. Affl uent and employed
ResilientEmployed with high incomes
Mix of renters & home ownersGreat prospects & very low unemployment levels
Single, no childrenSocialising with friends is one of the last things to give up
London has the highest density followed byManchester. Bristol. Leeds
customerswealthy & resilient
5 trading formats 52 venues
52 locations central London & major regional cities
5 trading formats
West End23 Locations
City21 locations
Regions8 locations
Lewis & ClarkGastro bars
Jewel barsChampagne & Cocktail bars
Exchange barsPremium wine bars & restaurants
LandmarkLarge multi-room London bars
Tiger TigerLarge multi-room venues
12 x hybrid Gastro bars serious about
food & pre–booked sales
Advanced sales: 64%
Food- led occasion: 40%
Pre-11pm sales: 82%
Capacity 300 to 900
1. Lewis & Clarke 23% LfL sales growth
9 x premium Champagne &
cocktail bars
Advanced sales: 54%
Food –led occasion: 20%
Pre-11pm sales: 65%
Capacity 250 to 500
2. Jewel bars 14% LfL sales growth
3. Exchange Bars 40% LfL sales growth
8 x premium wine bars and restaurants
(formerly Balls Brothers)
Including Gow’s Fish Restaurant &
Oyster bar.
Advanced sales: 46%
Food- led occasion: 60%
Capacity 200 to 500
4. Tiger Tiger 21% LfL sales growth
Glasgow
Aberdeen
Portsmouth
Cardiff
Newcastle
Manchester Leeds
Croydon
prime locations in
regional cities8 x multi-room
venues
Advanced sales: 64%
Food – led occasion: 38%
Pre-11pm sales: 49%
Capacity 1200 to 2500
5. Landmark 19% LfL sales growth
15 x large multi-room London bars
Advanced sales: 46%
Food – led occasion: 21%
Pre-11pm sales: 55%
Capacity 500 to 1100
Drink category mix
Soft drinks 2%
Draught beer
10%
Wines &
Champagne
17%
Bottled beer
16%
drink category mix
premium drink
range72% Of Drinks Sold
are Spirits, Cocktails,Wines & Champagnes
Attractive supply agreements; Diageo, Bibendum and Justerini & Brooks
Wine range: £17 to £140Champagne range: £35 to £6,000
Cocktail range: £8 to £140
Champagne volumes equivalent of 2000 pubsSell 360,000 Mojito’s
1 million litres of wine and champagneVodka volume equivalent to 1000 pubs
serious about food
Some Of The Biggest food businesses In the UK
Dedicated central food team that is focused from ‘fi eld to fork’
Menus tailoredFocus on supply chain & supplier relations
Growth categories: Signature dishes, fresh fi sh, signature platters
ops excellence licensing, health & safety and securitydelivered by an experiencedand passionate team
CSRStrong relationships:CEO Steve Richards chairman of Assc. of Licensed Multiple Retailers (ALMR)Also Chairman of Westminster Council ‘Night-Time Economy Committee’Novus has never had any conditions forced on a licenseInternal licensing team Award winning systems
LON
Dedicated licensing
team London’s
safest venues
Back office reporting
system
Monthly meetings with
licensing authorities
Mystery customer
audits; Serve Legal
Detailed incident
reporting
Crisis management
team
Quarterly licensing seminars
Steve Richards
Chief Executive
Andrew Campbell
Chief Financial Officer
Rupert Macfarlane
Sales Director
David Lodge
Property Director Karen Davies
HR Director
Helen Cook
Head of Marketing Jason Thorndycraft
Operations Director
• 21 head office
• 54 sales managers
• 70 senior sales executives
Dedicated team
• 2 internal and extensive external consultants
Dedicated team
• 9 people
Dedicated team
• 4 Digital staff
Digital team • 11 operations
• 6 marketing
• 3 food
Dedicated team
PBS the business usp
LateNightLondon.co.ukA key driver of Pre-Booked sales
LNL provides details for all Novus London venues and a range of
promotions3rd party digital links
Website allows customers to submit booking requests
Proactive marketingCustomer database of 1.6 million
(digital & mobile)Allows for targeted and tailored
marketing to both consumers and corporate
Undergoing extensive refresh
Venue websitesIndividual websites provide venue
information and specifi c promotional off ers
Provide online booking link
Social networksMany of the venues have their own
social network presenceFacebook and Twitter
PBS digital the key channel….
growth plan
Venues 52 75
Sales £134m £246m
EBITDA1 £17.2m £35.0m
Financial Metrics
Increase bookable space
Drive PBS
2020 vision
Central London Pre - eminence
the vision central london pre-eminence
£6.75m reformatting capex for existing barsPBS from 55% to 60% sales30 new sites in Central London100+ sites in LondonReplicate cluster footprint regionally£35m of New equity to fund acquisitions provided by our Stakeholders
Note 1 EBITDA pre-exceptionals and closure costs
enormous opportunity remains in central london
Source: CACI, DCL – Novus Potential Acquisitions, LEK Analysis
site criteria30+ sites required in the next 3yrs...Ambitious expansion plans.
Site requirements;Preferred Gross internal Area (GIA) - 5,500sqft to 12,000sqftTrading Floors - multi fl oors/rooms with a mixture of ground fl oor, basement and 1st fl oors.Capacity 250 to 1200Licences: FlexibleLeasehold – 20 to 25yrs FR&I (Freehold considered)Primary and secondary locations.Distressed businesses & shell developments.M&A or part of groups
Formats Novus want to open;Lewis & Clarke – Gastro bars.Jewel bars – Champagne & cocktail bars.Exchange bars – Premium Wine bar and Restaurants.Bespoke Restaurants & bars.Landmark bars – Larger multi-room sites with a late licence.
delivering growthproperty management
TeamLed by David Lodge and an industry-leading team & external consultants.New head of Acquisitions to be announced.Rob Embleton – Head of Maintenance (Ex’ Head of Maintenance S&N, Spirit & Asda)David Street – Acquisition & property part-time (Ex Property Director for Whitbread plc)External team of property lawyers & agents
Quality LeasesAverage lease term is 17 years91% L&TA protected tenancies70% Full repairing and insuring (FR&I)
Diversifi ed Landlords41 diff erent landlords across the 52 sites (Land Securities, Soho Estates, Prupim, etc.)Good relationships with all & no disputesRecently improved terms on a number of leases.
Maintenance & Statutory ComplianceCentrally controlled by Rob Embleton with 6 monthly contractor & supplier reviewsOutsourced 24hr Helpdesk (AMPM)PPM regime in support of statutory compliance
covenant & commentary
summarycovenantsafe & experienced operator
Novus has rents of £100k to £1.1m pa with a rent roll
of £15m pa .
Existing Landlords include;Land Securities, IVG UK, Prudential, Legal &
General, Soho Estates, Crown Estates, Hammerson, Scottish Widows , etc.
Operates from a number of landmark buildings;Gherkin, Trocadero, Citypoint, Grand Connaught Rooms, Haymarket House, Cornhill including 5no
Grade II listed properties.Best in class regarding Corporate Social
Responsibility .46 late licenses in Westminster & City of London.
Enviable track record with police and licensing authorities.
Record profi ts in a tough market.
Novus Leisure is a stable and resilient company, with an enviable reputation as a high quality operator.
52 premium bars, restaurants & clubs across the UK
Enviable balance sheet
Business funded/owned by equity shareholders
Debt/EBITDA less than 2:1 (No bank covenants)
£12.4m free cash generated this year
Operating company has traded for 14 years
The portfolio includes properties with blue-chip landlords
Strong reputation with the Police & Local authorities
novusleisure.com