WTA ANNUAL CONFERENCE 2013 Banking…our place in your industry? 1
Dec 25, 2015
Contents
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Market trends in the UKMarket trends in WalesLeisure Survey Investment and Funding optionsNatWestQ&A
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UK – Leisure Sector in line with UK economy, although more volatile
Source: Datastream RBS Economics
UK – Regions broadly in line in tracking UK economy
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Source: National Statistics
Regional gross value added (average y/y growth 1998-2011)
-4%
-2%
0%
2%
4%
6%
8%
10%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
North East North West Yorkshire and The Humber East Midlands
West Midlands East of England London South East
South West Wales Scotland Northern Ireland
UK
UK
London
Wales – Sector importance for the Welsh economy
GVA of £2,322m in 2010.
Source: ONS Headline workplace based GVA at current basic prices, Wales (‘Accommodation & Food Services’ and ‘Arts, entertainment and recreation’)
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Wales – Volume and Value of the sector
Source: Nomis / ONS International Passenger Survey, Wales
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9.89m visits in 2010 spending £1.8bn (Domestic and International). Domestic tourism represent 90% of visits & 80% of spending.
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Wales – Sector importance for employment
124,000 people employed. 5.8% of the population.
Source: Nomis / ONS June 2013, Wales (‘Accommodation & food service activities’ and ‘Arts, entertainment & recreation’).
NatWest Leisure Survey – Cautious Optimism!
How optimistic are you about your business over the next 12 months?
How will your business perform over the next 12 months?
Source: RBS Insight Survey of Leisure Customers April 2013
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NatWest Leisure Survey – Attitudes to investment
Have you invested enough to stay competitive?
Do you think it is too risky to invest in the current climate?
Source: RBS Insight Survey of Leisure Customers April 2013
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NatWest Leisure Survey – What businesses want to invest in
Source: RBS Insight Survey of Leisure Customers April 2013
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What Type of investment would make the biggest positive impact on your business?
NatWest Leisure Survey – Summary of key messages
Source: RBS Insight Survey of Leisure Customers April 2013
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Cautious Optimism Cautious Optimism
Access to FundingAccess to Funding
Lacking InvestmentLacking Investment
Please Don’t RainPlease Don’t Rain
Lick of Paint RequiredLick of Paint Required
August and December CriticalAugust and December Critical
Security may be required. Product fees may apply. Over 18s only.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME,MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER DEBT SECURED ON IT.
Investment – Funding options
Equity Owner Equity Private Investors (EIS/SEIS Schemes) Private Equity Business Growth Fund Crowd Sourcing?
Debt Bank Debt Private Loans Brewery Loans / Key Money
Mezzanine Hybrid
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Security may be required. Product fees may apply. Over 18s only.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME,MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER DEBT SECURED ON IT.
Investment – Optimal Capital Structures
Optimal balance between debt and equity Equity more expensive Debt cheaper
Ultimate combination will drive cost of capital for investment
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Security may be required. Product fees may apply. Over 18s only.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME,MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER DEBT SECURED ON IT.
Investment – What are banks looking for?
Viability
Proof of concept Strategic rationale Location/s Management capability (both operational and strategic) Budgets / margin / cash management Single site versus multi site Freehold versus leasehold
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NatWest - What are we doing?
Sector based approach Training and accreditation Working with you 4 Specialist RMs in Wales
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NatWest - Leisure Fund
Security may be required. Product fees may apply. Over 18s only.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME,MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER DEBT SECURED ON IT.
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What is the Leisure Fund?
Fee-free borrowing to help you business grow.
£300m Fund to support the UK Leisure Sector.
Optional capital repayment holiday.
The Leisure Fund & Funding for Lending Scheme is a limited Fund and will be offered on a first come first served basis. It is for loans of up to 5 years.Usual lending conditions apply. Structured finance and real estate finance are excluded. Only available to businesses with a turnover of above £2mand a maximum of £25m.The Capital Repayment Holiday is available for loans over £1m. For borrowing below £1m, it is subject to application. Only one six-month holiday canbe taken in a 12-month period. Not available for development funding.
NatWest - Leisure Fund
Security may be required. Product fees may apply. Over 18s only.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME,MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER DEBT SECURED ON IT.
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How much have we lent in Leisure since launch? £162.719m 265 Customers
Source: RBS / NatWest Leisure Fund
Sub-Sector Grand TotalHotels £90.594mOther Leisure £17.917mPubs £17.052mRestaurants £24.025mSporting £8.771mTravel £0.910mGaming £3.450mGrand Total £162.719m