Annual results for the period ended 31 December 2009
Cucina Lux Investments Limited, the holding company of Brakes Group, today publishes its statutory accounts for the year ended 31 December 2009.
Brakes Group has delivered another strong performance in 2009, consolidating its position as the leading supplier to the catering industry in the UK and France, despite continued economic uncertainty and weakness in consumer demand.
Financial Summary - 2009
Revenue up 7.9% to £2.2 billion (2008: £2.0 billion)
- UK revenue increase of 6.9%; France revenue increase of 11.8%
EBITDA increase of 8.7% to £151.5 million (2008: £139.4 million)
- UK EBITDA growth of 10.6%; France EBITDA decline of 3.8%
- Maintained EBITDA margin at 6.9% (2008: 6.8%)
Continued strong operating cash flow performance
- Cash flow generated from operations of £143.7m comfortably ahead of net cash pay interest charges of £81.3m
Sound financial position
- Long-term committed bank facilities in place
- Considerable headroom in banking covenants
- No significant debt repayment until 2012
Operational Summary
Resilient business model in challenging economic times
- Continued strong trading in UK and Ireland; France impacted by exposure to independent restaurant channel
- Highly diversified customer base and product range provides natural hedge against any one channel, customer or category
Focused on long-term strategy of continued improvement in profitability and cash flow performance
- Investing to create competitive advantage through organic growth and in-fill acquisitions
- Growth through product innovation and range extension such as value oriented products; ‘Switch and Save’ programme enables caterers to convert to Brakes own label from more expensive products
- Development of specialist offer via three wholesaler acquisitions through 2009 to YTD - Freshfayre (specialist chilled business), Menigo (Swedish foodservice business) and Browns Food Service (specialist catering butcher)
Significant focus on cost control and reduction – lowest cost operations
- Leveraging scale and leadership position through supply chain, distribution and cost efficiencies
Committed to improving customer service levels – already industry leading
- Daily monitoring of performance levels in terms of delivery accuracy and reliability
Outlook
Solid long-term prospects in foodservice distribution industry remain, despite current weak economic outlook
- Industry dynamics show a high degree of stability through the low-point in the cycle
- Significant opportunity given highly fragmented nature of the industry in both UK and France
Well positioned to manage the business through challenging market conditions in 2010
- Strength of Brakes Group’s performance in 2009 and strategic aims for 2010 should enable progress in the year ahead, despite significant margin pressure
About Brakes Group
Brakes Group is a leading supplier to the foodservice sector in the UK, Ireland, France and Sweden. The group comprises a family of specialist businesses which are able to deliver everything the caterer needs, including their very successful own brand ranges developed specifically for chefs.
Employing over 10,000 people, the group supplies a diverse customer base, which includes, independent pubs, restaurants and hotels, schools, hospitals, contract caterers and well known national chains.
Brakes Group has developed a clear customer focus and a strong understanding of the needs of the foodservice sector providing innovative products and services and is committed to improving both the environment and the communities its serves.