Market Intelligence Report
Shoot Benchmarking 2013/14 Season Let shoots’ profits are under pressure as charges rise by £2 per bird and costs rise too.
FOREWORD We are delighted to introduce the headline results of our 4th shoot benchmarking survey. This time, covering the 2013/14 season, 100 private and let shoots took part in what is widely regarded as an industry-leading survey and the only one of its kind. The overriding aim of the exercise is to act as a financial management tool and identify areas of strength and weakness in a shoot’s performance, against the benchmark so corrective action can be taken as appropriate. For each shoot which submits figures, we produce (for free!) a detailed report analysing their data against others, and highlighting above or below average performance. They receive more detailed information than in this flyer. All data is held entirely confidentially - you have our total assurance on that.
David Steel Head of Sporting Smiths Gore 01200 411051 david.steel@smithsgore.co.uk
This year some interesting trends have again emerged; variable and fixed costs have both risen since our last survey in 2011/12 as have charges per bird (by £2 per bird). Profit margins remain under pressure however, and only those who focus hard on cost control will see a profit at the end of the season. The good news however is that general optimism remains high about future prospects and bookings are up on over a third of let shoots. More detail is shown on the pages following. The feedback we get from those participating in benchmarking is generally very positive. However, the survey’s overall success depends on as many shoots as possible (large and small) taking part. The more that do, the more credible, and hence more beneficial, to all are the results. We thank those who have taken part, particularly those who have done so each year, and we encourage others to follow their lead when we repeat the survey in February 2015 at the end of the current season.
Roger Dr aycott Head of Advisory Services Game & Wildlife Conservation Trust 01440 821325 rdraycott@gwct.org.uk
© Smiths Gore and GWCT 2014. Whilst every effort has been made to ensure the accuracy of this report, its information may not be comprehensive and recipients should not act upon it without seeking full professional advice. As a general report, this material does not necessarily reflect the view of Smiths Gore and GWCT in relation to particular shoots. All rights conferred by law of copyright, by virtue of international copyright conventions and all other intellectual property laws are reserved by Smiths Gore and GWCT. No part of the report may be reproduced in any form, without the prior written consent of Smiths Gore and GWCT to the form and content within which it appears.
What the 2013/14 survey is based on‌ Let shoots
100 shoots 152 shoots)
Shot over 2,700 days (2011/12
2,400 days)
Average number of birds put down
(2011/12
1,200,000 birds put down
13,834
3,859
2,411
1,545
Average number of days shot per season
Average acreage of shoot
1,100,000)
Average bag size let days
(2011/12
Private Shoots
* Out of which 21 days are let on average
200
149
birds
birds
SHOOT PERFORMANCE Poult prices and charges per bird increase Pre-season Price paid per poult (£)
£3.84
Bottom 25%
£4.43 £3.65
£4.13
(£3.55)
(£4.00)
Average
£3.50 Top 25%
Bottom 25%
£4.00
Average
Average price paid (£/poult)
£5.00
Poult prices have risen slightly. Let shoots paid slightly more than private shoots.
Top 25%
... ... ... ... £0
Partridge
Pheasant
2009/10 2010/11 2011/12 2013/14
(11/12 figures shown in brackets)
Price charged per bird (excluding VAT) Prices have increased by £2 per bird for both pheasants and partridges compared with two years ago. Let shoots charge £1 per bird more than private ones for pheasants and £2 per bird more for partridge.
£36
£36 £34 £31
(£32)
Bottom 25%
Average
£33
Top 25%
£31
(£31)
Bottom 25%
Average
Top 25%
Partridge
Pheasant
Average price paid (£/bird)
£40.00 ... ... ... £0 2009/10
2010/11 2011/12 2013/14
(11/12 figures shown in brackets)
Selling let days Over 85% of let days were sold before the start of the season. 57% of shoots had sold out before the season. 80% had sold out by the end of the season.
85% 57%
80%
Shooting season Average bag size
Let shoots
Private shoots
Let days 200 (213)
149 (147)
Private days 187 (195)
111 (115)
(11/12 figures shown in brackets)
Customer service: overages and dressed birds Fewer shoots are allowing 5% or 10% leeway, reflecting the significant cost to shoots. 2013/14
6%
2011/12
Allow 10% leeway
11%
Allow 5% leeway
12%
28%
38% 21%
36% 14%
18%
No overage No overage and no underage
16%
Charge per bird shot Other
52% of let shoots give their guns dressed birds; this is the same proportion as 2011/12.
52%
Returns (% of birds put down) Private shoots continue to achieve higher returns than let ones.
Let shoots
Returns were 1-2% lower than in the 2011/12 season. There is a 12% difference in returns between the top and bottom performers. All shoots
Private shoots
38% 39% 30%
37%
29%
44%
40%
33% 32%
43% Bottom 25%
(40%)
41%
45% 46% 43%
(42%)
09/10
Average 10/11
Top 25% 11/12
13/14
Salaries are 3% higher than in 2011/12 The most common benefits provided are a house, vehicle, clothing allowance, and keeper’s day The shoots provided the anonymised details of salaries, packages and benefits for 160 staff.
Average salary for Gam
Average salary for Head Keepers
£24,635 (£23,990)
£22,211 (£21,541)
£19,792
£14,813
(£18,761)
(£15,000)
Bottom 25%
Average
Top 25%
Bottom 25%
(11/12 figures shown in brackets)
% of Head Keepers provided with benefits
97%
House
44%
82%
38%
Utility bills paid
Council Tax
Pension
-9%
N/a
+10%
100%
26%
Vehicle
Vehicle
business use
private use
79%
Dog
% of Gamekeepers prov
91%
Clothing
allowance allowance
74%
97%
38%
88%
Mobile phones
Keeper’s day
Other benefits
House
-14%
+9%
+10%
+4%
0%
-7%
+14%
+10%
% change from 2011/12
+13%
29%
67%
Utility Council bills paid Tax
-14%
N/a
24% Pension
-4%
Beaters and pickers up pay
ekeepers
Pay has risen by £2-3 per day since the 2011/12 season.
£18,793
The majority of shoots pay beaters £25-£30 per day. Let shoots tend to pay more than private shoots.
(£18,050)
£16,995 (£16,414)
£31
£28
(£29)
(£25)
Beaters (£ per day)
Pickers Up (£ per day)
Beaters pay (£ per day) Top 25% Number of shoots
Average (11/12 figures shown in brackets)
ided with benefits
15 10 5 0 £10
£15
£20
£25
£30
Private shoots
£35
£40
£45
£50
£45
£50
Let shoots
86%
12%
Vehicle
Vehicle
business use
private use
-8%
+5%
63%
80%
51%
73%
Dog
Clothing
Mobile phones
Keeper’s Other day benefits
allowance allowance
-6%
-4%
+5%
-14%
24%
-4%
Number of shoots
Pickers up pay (£ per day) 15 10 5 0 £10
£15
£20
£25
Private shoots
£30
£35
£40
Let shoots
Costs Average costs are rising
Total variable costs per bird put down
Total fixed costs per bird put
Average variable costs have increased by about 50p per bird put down since 2011/12, mainly due to feed - for both birds and guests (hospitality) and general inflation.
Fixed costs have increased significantly, largely salaries and income foregone as housing not le
£9.50
£6.93 £8.57
£5.34
(£8.06)
Bottom 25%
(£4.67)
£7.24
Average
Top 25%
Bottom 25%
(11/12 figures shown in brackets)
Average
(11/12 figures shown in bra
% of variable costs
% of fixed costs
Birds, feed and beaters and pickers up pay are the three main costs, accounting for 75% of variable costs.
The four main costs account for 84% of fixed
% of total vc
£/bird put down
Birds
36%
£3.05
Feed
27%
£2.30
Beaters and pickers up pay
12%
£0.96
Seeds / fert / sprays for game crops Hospitality costs Fuel Materials for pens Any other variable costs Shoot equipment (pegs, radios etc) Vet and medical Ammunition Advertising and marketing Professional advice
5% 5% 4% 3% 2% 2% 1% 0% 5% 0%
£0.45 £0.44 £0.33 £0.27 £0.21 £0.16 £0.08 £0.04 £0.03 £0.02
Staff salaries
75%
Income foregone as housing not let Rent paid to 3rd parties for land or sporting rights Vehicle and trailer costs
Depreciation Insurance Utility bills paid for staff Housing maintenance Management costs of operating shoot Rent paid to 3rd parties for housing Any other fixed costs Dog allowances Other staff benefits Clothing allowances Mobile phones
down
Total costs per bird put down* Total costs have risen by 11% since 2011/12 while charges per bird have risen by 6%. This has contributed to 59% of let shoots making a loss.
due to staff t.
£15.80 £13.76 (£12.42)
£3.28
Top 25%
Bottom 25%
ckets)
Average
£11.07
Top 25%
(11/12 figures shown in brackets)
How does a total cost of £13.76 of putting a bird down multiply up into charging over £30 per bird? costs.
% of total fc
£/bird put down
56%
£2.94
11%
£0.68
9%
£0.43
8%
£0.38
4% 4% 2% 2% 2% 1% 1% 1% 1% 1% 0%
£0.22 £0.14 £0.13 £0.13 £0.08 £0.05 £0.05 £0.03 £0.03 £0.03 £0.02
Total cost per bird put down
÷
84%
=
By return (%) total cost per bird shot
£13.76 40% £34.40
*
This only includes shoots which provided variable and fixed cost data and so is not the sum of total variable costs plus total fixed costs as those calculations included shoots that only provided one set of costs.
Profitability What makes some shoots profitable and others loss making? 59% of the let shoots made a loss – a larger proportion than two years ago (33%) but they made a smaller loss per bird of -£9.38 compared with -£15.18 in 2011/12.
Average per bird put down (£ unless otherwise stated)
59%
Profit-making shoots
Total cost per bird put down £11.53
Loss-making shoots £13.86
The difference in performance is in fixed costs, especially staff costs, more than variable ones
Variable costs per bird put down £7.72 £8.25 Birds £2.50 £3.11 Feed £2.28 £2.08 Beaters and pickers up pay £1.05 £0.95 Fixed costs per bird put down £3.81 £5.61 Staff salaries £2.39 £2.95 Income foregone as housing not let £.044 £1.05 Rent paid to third parties for land £0.10 £0.11 Vehicle and trailer costs £0.25 £0.35
But the difference in staff costs is not a race to the bottom as the salaries of full-time Head Keepers are higher for profit-making shoots – the difference is that they look after more birds Full-time Head Keeper salary £22,248 Number of birds put down per FT staff 11,659
£21,937 9,082
There is also a difference in shoot performance. Profitable shoots put down more birds, have more let days, larger bag sizes, have higher returns and generally charge more per bird Number of birds put down 16,717 Number of days let per season 21 Average bag size per let day 233 Return % 39%
Price charged per bird — pheasant (exc VAT) £35 Price charged per bird — partridge (exc VAT) £33
13,129 19 184 35% £33 £34
All of the above translates into massive differences in the income each let day generates Net income per let day
£1,877
The key to profitable performance is:
1. Controlling variable costs 2. Spreading fixed costs, especially staff costs, across more birds put down 3. Generating more income per let day, from bigger bag sizes and higher charges per bird 4. Selling more let days
-£1,582
Habitat creation and management For the first time, we have collected data on the environmental management shoots do, which can be used to demonstrate their benefits for wildlife Percentages are proportion of shoots.
Habitat Improvement Schemes 69% of shoots shot over land that is in a paid agri-environment habitat improvement scheme. 14% shot over land that is in a voluntary habitat improvement scheme, like Campaign for the Farmed Environment. 47% pay for habitat improvement themselves, to benefit the shoot. 10% shot over land that is not in a paid agri-environment habitat improvement scheme.
F
E
G H
I
A D B C
In-field habitat A B C D
68% have established buffer strips and / or field corners. 69% have established wild bird seed mix areas. 25% have established pollen and nectar mix areas. 46% have established wildlife margins including conservation headlands (which are selectively sprayed strips in cereal crops to encourage insects and broadleaved plants).
Woodland E F
79% have managed woodland to benefit the shoot in the last 10 years. 64% have planted woodland in the last 10 years (21 acres per shoot average).
Feeding G H I
90% feed game birds voluntarily after the shooting season. 40% feed songbirds voluntarily. 10% have taken up a supplementary feeding option under an agri-environment scheme.
Shoot Biodiversity Assessments Shoots, like other land-based activities, face increasing pressure to demonstrate sustainability and measureable biodiversity gain arising from their activities. But how many shoots are capable of quantifying such benefits? How might game management be modified to maximise these benefits? What species of conservation concern might be “targeted” for recovery? Particularly on larger shoots, statements of “best practice” are increasingly important in discussion with conservation agencies and addressing criticism of game shooting. To meet this, the GWCT’s experienced team of advisors offers bespoke Shoot Biodiversity Assessments, which provide an independent expert report on best practice and biodiversity gain on individual shoots.
What is involved A thorough on-site review of: l Release sites l Feeding l Game and wildlife habitat and management l Predation control strategy and practice This is used to produce a confidential report on the current state of the shoot and an action plan for future improvement of both shoot and biodiversity.
For further information, please contact advisory@gwct.org.uk.
SHOOT INTENTIONS What shoots intend to do in the 2014/15 season Headlines 1. 2. 3. 4.
Shoots are more optimistic about the 2014/15 season. Bird numbers are more stable with equal amounts of shoots releasing more and fewer birds. Confirmed bookings have improved compared with 2013/14. A third of shoots intend to raise their charge per bird. A net balance of
A net balance of
A net balance of
A net balance of
of shoots are more optimistic compared with last year
of shoots are putting more birds down
of shoots have more confirmed bookings (let shoots only)
of shoots are planning to increase charges per bird (let shoots only)
32%
0%
32%
36%
4% Less optimistic
23%
0%
11%
34% 11% Fewer birds
More birds More optimistic
23%
11%
31%
33%
31%
Less bookings
More bookings
2% Decrease charges
Increase charges
Shoot intentions over our four surveys % 80
% 80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0 2011/12
2012/13
2013/14
2014/15
0 2011/12
2012/13
2013/14
2014/15
Net balance of shoots that are more optimistic compared with last year
Net balance of shoots that have more confirmed bookings (let shoots only)
Net balance of shoots that are putting more birds down
Net balance of shoots that are planning to increase charges per bird (let shoots only)
Interpreting net balance An increase in net balance shows the proportion of shoots reporting a rise in optimism (or birds put down, bookings or charges) minus those reporting a fall. For example, if +36% reported a rise and -4% reported a fall, the net balance will be +32%.
FIELD SPORTS Our rural management team looks after two million acres including many of the finest sporting estates in the UK. l Sales and purchases
l Lettings
l Management l Finance analysis l Habitat layout and management
l Market information
l Employee advice l Capital and rental valuations l Shoot benchmarking
David Steel England & Wales 01200 411051 david.steel@smithsgore.co.uk
Thomas Florey Scotland 01387 274393 thomas.florey@smithsgore.co.uk
Please contact us if you would like to take part in the 2014/15 season shoot benchmarking survey and receive a free detailed report analysing your shoot against the benchmark. We are also pleased to arrange free seminars on shoot management and benchmarking for groups of 10 or more shoots.
David Steel Head of Sporting Smiths Gore 01200 411051 david.steel@smithsgore.co.uk
Roger Dr aycott Head of Advisory Services Game & Wildlife Conservation Trust 01440 821325 rdraycott@gwct.org.uk
smithsgore.co.uk