Johnson Service Group Plc · LSE:JSG
Johnson Service — H1 2015 Earnings Presentation
17 slides from Johnson Service's earnings presentation, Jun 30, 2015
Slide 1: Interim Results for the 6 months ended 30 June 2015
PO RINSON INTERIM RESULTS For the 6 months ended 30 June 2015 Chris Sander Chief Executive Officer Yvonne Monaghan Chief Financial Officer
Slide 2: Another strong performance, ahead of expectations and significantly ahead of 2014
2 Another strong performance, ahead Acquisition of London Linen for of expectations and significantly £64.9 million. Immediately earnings ahead of 2014 enhancing Adjusted operating profit increased Successful placing of 30.0 million by 20.2% to £11.3 million (2014 H1: new shares at 73p, raising net
Slide 3: Income Statement
3 Income Statement Continuing operations 2015 H1 2014 H1 Change Revenue £109.2m £101.6m 7.5% Adjusted operating profit1 £11.3m £9.4m 20.2% Adjusted operating margin1 10.3% 9.3% Exceptional items £(7.6)m £(1.4)m Adjusted PBT1 £10.1m £8.5m 18.8% Adjusted EPS1 2.6p 2.3p 13.0% Fully diluted number of sh
Slide 4: Financial Results – Cash Flow
4 Financial Results – Cash Flow £m 2015 H1 2014 H1 2014 FY Continuing adjusted operating profit 11.3 9.4 21.8 Depreciation and software amortisation (excl. exceptionals) 15.0 12.9 27.6 Working capital (excl. exceptionals) 2.0 0.5 2.4 Capital expenditure – Fixed assets (3.8) (4.7) (11.7) – Rental sto
Slide 5: Share purchase of London Linen Supply Limited for £64.9m
5 London Linen financial information Share purchase of Usual indemnity London Linen Complements and warranty Year to Oct 14 Oct 13 Supply Limited for existing Stalbridge provisions £64.9m net of business included in SPA cash acquired £m £m Revenue 29.4 27.2 History of YoY Provides EBITDA* 6.3 5.7 Sp
Slide 6: Revenue and Profit £m
6 Revenue £m Profit £m 90 14 80 12 70 10 60 50 8 40 6 30 4 20 10 2 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 -2 Textile Rental Drycleaning Textile Rental Drycleaning Note: Profit is stated before exceptional items and amortisation of customer contracts
Slide 7: Textile Rental includes four recognised brands
7 Textile Rental £m 2015 H1 2014 H1 Increase Revenue 85.7 74.4 15.2% Adjusted operating profit1 12.4 10.8 14.8% Margin 14.5% 14.5% Textile Rental includes four recognised brands Restaurant Premium High and Workwear linen and volume catering chefs’ wear hotel linen linen Note: 1) Before amortisation
Slide 8: Textile Rental
8 Textile Rental Overall revenue growth of Strong new sales to both 15.2%, including £5.6m from existing and new London Linen Apparelmaster customers Customer retention in Stalbridge new sales Apparelmaster maintained targeted in vicinity of at 95% Dorset plants Stalbridge and London Linen London Li
Slide 9: The UK Textile Rental market can be segmented as follows
9 The UK Textile Rental market can be segmented as follows: Segment Market Participants JSG Representation Estimated total Estimated JSG market Share Workwear JSG, Berendsen Apparelmaster £190.0m 45.0% Hotels and Berendsen, Brilliant, Bourne, Stalbridge, £540.0m 15.0% Restaurants Afonwen, JSG, AAA L
Slide 10: Diverse customer base with over 45,000 accounts
10 Diverse customer base with over High proportion of Average workwear 23 strategically sited 45,000 accounts contract based customer spend by and well invested UK serviced by over 550 revenues location c£36 p/w laundries commercial vehicles Continued capital Identify further investment in all Furth
Slide 11: Drycleaning
11 Drycleaning £m 2015 H1 2014 H1 Change Revenue 23.5 27.2 (13.6%) Adjusted operating profit1 0.5 0.4 25.0% Margin 2.1% 1.5% Partnership with Continuing Reorganisation Waitrose working development of announced 6 Jan 210 branches and well, 50 service alternative, more 2015 successfully 128 Waitrose d
Slide 12: Exceptional items
12 Continuing, £m 2015 H1 2014 H1 2014 FY Restructuring costs – Textile Rental 0.6 0.8 1.3 Restructuring costs – Drycleaning 6.2 - - Acquisition related costs (fees) 0.8 0.6 0.6 Pension costs - - 4.9 Total 7.6 1.4 6.8 Restructuring costs - Textile Restructuring costs - Drycleaning Rental in 2015 and
Slide 13: Bank Facility, Hedging and Interest
13 Bank Facility Hedging Interest • New £120.0m facility: £100.0m RCF • Hedging swaps LIBOR for a fixed rate • Interest cost (excluding notional expiring April 2020; £20.0m 364 Day of 1.79% on £20.0m of debt until Jan pension interest costs) increased to Facility expiring April 2016 2016 £0.9m (2014
Slide 14: Pensions and Tax
14 Pensions Tax • Net IAS 19 Pension liability of • Underlying tax rate1 of 20.7% (2014: £11.4m (Dec 2014: £13.8m) 22.2%) compared to a weighted average rate of 20.25% (2014: • Liabilities reduced partly due to the 21.5%) increase in discount rate assumption • No credit or charge in respect of • Add
Slide 15: Outlook: Textile Rental, Drycleaning, Financials
15 Textile Rental Drycleaning Financials • Continued expansion of our • Streamlined branch portfolio • Full year results expected to be presence in the Textile Rental market focusing on service and convenience slightly ahead of current market expectations • Identify further earnings accretive • Deve
Slide 16: Thank You
(F)JOHNSON THANK YOU
Slide 17: Segmental revenue and operating profit
17 2015 H1 2014 H1 Operating Operating Revenue Profit1 Revenue Profit1 £m £m £m £m Textile Rental - Trading 85.7 11.9 74.4 10.3 - Allocated Income - 0.5 - 0.5 85.7 12.4 74.4 10.8 Drycleaning - Retail Drycleaning 23.5 0.5 27.2 0.4 Unallocated Costs - Group Costs - (1.6) - (1.8) TOTAL 109.2 11.3 101.6
Johnson Service Group — H1 2015 Earnings Presentation on 6ix