(For the 28 weeks ended 9 April 2016)
- Strong earnings growth; focus on driving profitable sales
- Review of strategic options completed – focus on accelerating organic growth
- Clear operational plan in place and already under way
Financial performance
- Total revenue of £1,096m, down 1.5%
- Sales uplifts from invested sitesa in excess of 10% in first year offset by decline in uninvested estate to give overall like-for-like sales decline of 1.6%b
- Adjusted operating profit of £156mc, up 2.0%
- Adjusted operating margin 14.2%c (H1 2015: 13.7%)
- Adjusted earnings per share of 15.7pc, up 9.0%
- Interim dividend of 2.5p approved
Reported results
- Profit before tax: £83m (H1 2015 £75m)
- Basic earnings per share: 18.4p (H1 2015 14.4p)
Balance sheet and cash flow
- Capital expenditure £88m (H1 2015: £94m), including 4 new site openings and 22 conversions
- Free cash flow before exceptional items of £34md (H1 2015: £50m)
- Net debt of £1.86bn representing 4.2 times annualised adjusted EBITDAe (H1 2015 4.4 times)
Phil Urban, Chief Executive, commented:
“In the first half we increased our adjusted earnings by 9.0%c. However, in order to accelerate the trading performance of the group there is much to do in our three priority areas: building a more balanced business; instilling a more commercial culture; and increasing the pace of execution and innovation.
During the last six months we have completed a review of our strategic options. I am very clear that our best route for delivering sustainable returns for our shareholders is through the acceleration of organic growth: to maximise the return on the high-quality assets we own. Our plan, to reshape the estate and innovate in both existing and new offers for our guests, is now well under way and I have every confidence in its success.”