Slide 1: Interim Results Half Year Ended 30 June 2010
Interim Results Half Year Ended 30 June 2010 John Talbot – Executive Chairman Yvonne Monaghan – Finance Director Wednesday 1st September 2010
Slide 2: Overview
2010 Interim Results Overview • Traded well in challenging market conditions • Increased PBT to £6.2m (2009: £5.3m)* • Further reduction in net debt to £64.6m (Dec 2009: £67.7m) • Increased interim dividend of 0.27p (2009: 0.25p) All figures are continuing *Before intangibles amortisation and impair
Slide 3: Financial Results - Income Statement
2010 Interim Results Financial Results- Income Statement Continuing Operations 2010 2009 Change Revenue* £109.8m £113.4m (3.2)% Adjusted Operating Profit ** £8.0m £8.0m 0% Adjusted Operating Margin ** 7.3% 7.1% Adjusted PBT** £6.2m £5.3m 17.0% Adjusted Fully Diluted EPS** 1.8p 1.4p 28.6% Exceptional
Slide 4: Cash Flow at 30 June 2010
2010 Interim Results Cash Flow at 30 June 2010 £m 2010 2009 Adjusted Operating Profit 8.0 8.0 Depreciation and software amortisation 9.9 10.2 Working Capital (excl. exceptionals) (0.5) 1.0 Capital Expenditure – Fixed assets (4.2) (3.2) – Rental stocks (net) (6.4) (6.1) – Fixed asset proceeds 0.1 0.4
Slide 5: Divisional Performance: Textile Rental
2010 Interim Results Divisional Performance Textile Rental Revenue * £m 2010 2009 Change Johnsons Apparelmaster 43.8 44.8 Stalbridge Linen Services 12.5 12.8 Total 56.3 57.6 (2.3)% Adjusted Operating Profit ** £m Johnsons Apparelmaster 6.4 6.2 Stalbridge Linen Services 0.7 0.0 Allocated income 0.5 0
Slide 6: Divisional Performance: Textile Rental
2010 Interim Results Divisional Performance Textile Rental Johnsons Apparelmaster • Continued reduction in spend by existing customers but reduced level of customer terminations • New business wins continue • 14% reduction in energy cost benefiting margin • Food garment throughput increased by 60,00
Slide 7: Divisional Performance: Drycleaning
2010 Interim Results Divisional Performance Drycleaning Retail £m 2010 2009 Change Revenue* 34.6 36.7 (5.7)% Adjusted Operating Profit ** 0.4 1.3 (69.2)% Margin 1.2% 3.5% • Like for like sales decrease of 5.0% (2009 H1: -5.3%) at Johnson Cleaners • Like for like sales increase of 0.9% (2009 H1: -10.
Slide 8: Divisional Performance: Facilities Management
2010 Interim Results Divisional Performance Facilities Management SGP £m 2010 2009 Change Revenue* 14.7 14.5 1.4% Adjusted Operating Profit ** 1.6 1.6 0% Margin 10.9% 11.0% • Profit maintained despite increase in overhead to support new business wins • Public and Private FM contracts represent 66% o
Slide 9: Group Costs
2010 Interim Results Group Costs £m 2010 2009 Administration Costs 1.4 1.2 Management incentive costs 0.3 0.4 1.7 1.6 9
Slide 10: Exceptional Items
2010 Interim Results Exceptional Items £m 2010 2009 Continuing Restructuring costs - Drycleaning (6.5) - Business Acquisition Activity (0.5) - Pension Credit - 2.2 Total costs (7.0) 2.2 Restructuring provision for: •20 shop closures ahead of lease expiry •8 loss making stores •Warehousing and logist
Slide 11: Bank Facilities
2010 Interim Results Bank Facilities Net debt at June 2010 reduced to £64.6m (Dec 09: £67.7m) Facility at June 10 - £77.5m • Facility expires April 2013 and comprises; £55.5m term loan at LIBOR + margin reducing by £1.5m in December and £1.5m per half year thereafter £20.0m revolver at LIBOR + margi
Slide 12: Pensions and Tax
2010 Interim Results Pensions and Tax Increased IAS 19 Pension net liability to £18.6m (Dec 2009: £13.7m) due to: – Fall in equity markets – Reduced discount rate applied to liabilities Offset by: – additional pension contributions of £0.8m • Agreed schedule of deficit payments of £1.6m in full year
Slide 13: The Group Moving Forward
2010 Interim Results The Group Moving Forward • Textile Rental Continued focus on efficiency and energy recycling Take advantage of market opportunities Leverage of Johnson brand • Drycleaning Green evolution programme continues as stores continue to show improved sales Closure of loss mak
Slide 14: Conclusion
2010 Interim Results Conclusion • Good overall performance • Improvement in Textile Rental • Progress on SGP expansion of PFI contracts • Repositioning of Drycleaning portfolio • Further reduction in net debt • Increased interim dividend 14
Slide 15: Appendix 1 – Segmental Results
2010 Interim Results Appendix 1 – Segmental Results £m 2010 2010 2009 2009 Revenue* Op Profit** Revenue* Op Profit** Textile Rental Johnsons Apparelmaster 43.8 6.4 44.8 6.2 Stalbridge 12.5 0.7 12.8 0.0 Allocated Income / (Costs) - 0.5 - 0.5 56.3 7.6 57.6 6.7 Drycleaning Retail drycleaning 34.6 0.4 3