Slide 1: 2017 Half Year Results
RESTORE 2017 Half Year Results PLC Presented by Charles Skinner, Chief Executive September 2017 Adam Councell, Group Finance Director
Slide 2: Highlights
Highlights Group revenue up 57% to £86.9m (H1 2016: £55.4m) Document Management revenue up 74% Relocation revenue up 21% Group adjusted profit before tax up 59% to £15.3m (H1 2016: £9.6m) Document Management adjusted operating profit up 63% Relocation adjusted operating profit up 18% A
Slide 3: Financial Review
RESTORE Financial Review PLC 454.5p 86.9 55.4 9.6 15.3 87.0p 1.33 1.67 H1 2016 H1 2017 Dividend (p) Adjusted PBT (£m) Revenue (£m) 01-Jul-12 01-Jan-13 01-Jul-13 01-Jan-14 01-Jul-14 01-Jan-15 01-Jul-15 01-Jan-16 01-Jul-16 01-Jan-17 01-Jul-17
Slide 4: Consolidated Income Statement (adjusted)
Consolidated Income Statement (adjusted) Revenue (£m) H1 2017 H1 2016 Change Revenue (£m) 86.9 55.4 + 57% Adjusted operating profit (£m) * 16.5 10.5 + 57% Finance costs (£m) (1.2) (0.9) + 33% Adjusted PBT (£m) * 15.3 9.6 + 59% Standard tax charge 19.5% 20% Adjusted profit for period (£m) * 12.3 7.7
Slide 5: Document Management
Document Management H1 2017 H2 2016 H1 2016 YOY change Revenue (£m) 64.8 Revenue (£m) 64.8 52.9 37.2 +74% Operating profit (£m) 15.8 12.3 9.7 +63% 27.6 Operating margin 24.4% 23.3% 26.1% -170 bps 37.2 H1 2016 H1 2017 Increase PHS DS key contributor to revenue movement Operating profit (£m) Organ
Slide 6: Relocation
Relocation Revenue (£m) H1 2017 H1 2016 Change 22.1 Revenue (£m) 22.1 18.2 +21% Operating profit (£m) 2.0 1.7 +18% 3.9 Operating margin 9.0% 9.3% -30 bps 18.2 H1 2016 H1 2017 Increase Revenue movement includes contribution of ITAD Works acquisition Operating profit (£m) Organic growth 12% 2.0
Slide 7: Exceptional Costs
Exceptional Costs £m H1 2017 H1 2016 Restructuring costs 3.7 2.8 Transaction costs 0.1 0.2 Box relocation and associated costs 0.3 0.1 Other exceptional costs 7.8 1.8 Total exceptional costs 11.9 4.9 Restructuring costs largely reflect PHS DS acquisition and double running costs on properties Br
Slide 8: Cash Flow
Cash Flow H1 2017 £m H1 2016 £m Adjusted EBITDA 19.5 12.3 Exceptional costs (excluding non-cash EIP credit) (12.7) (4.9) Adjusted EBITDA after exceptionals 6.8 7.4 Working capital (including Gain/Loss on sale of FA) (3.7) (1.4) Net cash from operations 3.1 6.0 Capex (2.3) (1.9) Interest (1.1) (1.0)
Slide 9: Balance Sheet and Debt Facilities
Balance Sheet and Debt Facilities H1 2017 FY 2016 £m £m Non-current assets 240.8 240.7 Trade and other current assets 45.6 40.3 Cash and cash equivalents 15.4 12.9 Current Assets 61.0 53.2 Trade and other current liabilities (40.9) (36.9) Financial liabilities – borrowings (6.9) (6.8) Current liabil
Slide 10: Financial Summary
Financial Summary Revenue up 57% reflecting PHS DS acquisition H1 Group organic growth strong at 8% Operating margins consistent at 19% Bank facilities increased and term extended Leverage c2x pro forma EBITDA Interim dividend up 26% to 1.67p 9
Slide 11: Operational Review
RESTORE Operational Review PLC
Slide 12: Business Stream Overview
Business Stream Overview Restore Records Management UK no. 2 in consolidated, steadily growing market consistent high operating margins with scope for improvement strong earnings visibility Restore Datashred established national operator, UK no. 2, with significant scope for growth by ac
Slide 13: Operational Review – Records Management
Operational Review – Records Management Positive net box growth despite major exit Operating margins stable Integration of PHS DS RM complete, excluding IT platform New space at Monkton Farleigh site and Upper Heyford on stream Capacity utilisation in excess of 90% Charlton and Bristol e
Slide 14: Operational Review - Shred
Operational Review - Shred Business transformed by PHS Datashred acquisition Trading ahead of expectations with double digit organic growth Healthy operating margins with scope to improve Expected to benefit from GDPR introduction in 2018 5 acquisitions in year-to-date Significant scope
Slide 15: Operational Review - Scan
Operational Review - Scan Double-digit organic growth Strong year-on-year operating margin improvement Scale benefit from additional PHS DS scanning revenue Offer broadened by addition of PHS DS Scan Investment in management and facilities has had a positive impact Successful delivery of
Slide 16: Operational Review - Relocation
Operational Review - Relocation Strong year-on-year performance, particularly in core London relocation market Additional multi-year contract with MOD IT recycling showing significant growth The ITAD Works acquisition exceeding expectations, encouraging further development in this market I
Slide 17: Acquisitions in 2017
Acquisitions in 2017 January Reisswolf Wales Wales January ID Secured London (trading as Reisswolf London) – shredding operation February The ITAD Works Surrey July Solutions for Archiving Dorset July Banner shredding activities All UK August Baxter Confidential Hampshire September Lom
Slide 18: Group Cross-Selling
Group Cross-Selling One CRM system across Group Number of top 500 customers by services used Compliance with Group CRM mandatory In place for 6 years Comprehensive database of UK offices Makes new business from existing customers 199 far easier More services increases stickiness 132 87
Slide 19: Summary and Outlook
Summary and Outlook Strong year-on-year performance with solid organic growth Effective integration of PHS DS acquisition Four well-positioned business streams Records management: scope to increase margins further Shredding: Datashred well-positioned to grow and consolidate its market Sc