Slide 1: Final Results: 12 months ended 31 December 2015
(AJQHNSON FINAL RESULTS 12 months ended 31 December 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 Acquisitions of London Linen and of expectations and significantly Ashbon immediately earnings ahead of 2014 enhancing Adjusted operating profit increased Textile Rental continues to perform by 28% to £27.9 million ahead of expectations with high (2014: £21.8 mill
Slide 3: Income Statement
3 Income Statement Continuing operations 2015 2014 Increase Revenue £234.4m £210.4m 11.4% Adjusted operating profit1 £27.9m £21.8m 28.0% Adjusted operating margin1 11.9% 10.4% n/a Exceptional items £(9.0)m £(6.8)m n/a Adjusted PBT1 £25.2m £20.0m 26.0% Adjusted EPS1 6.3p 5.2p 21.2% Number of shares u
Slide 4: Financial Results – Cash Flow
4 Financial Results – Cash Flow £m 2015 2014 Continuing adjusted operating profit 27.9 21.8 Depreciation and software amortisation (excl. exceptionals) 32.4 27.6 Working capital (excl. exceptionals) 1.7 2.4 Capital expenditure – Fixed assets (4.4) (11.7) – Rental stocks (net) (25.3) (23.0) – Fixed a
Slide 5: Acquisitions: London Linen Supply and Ashbon Services
5 Share purchase of Provides London Linen Complements opportunities for Continuing year Supply Limited for existing Stalbridge brand on year revenue £64.9m net of business consolidation and growth cash acquired operational efficiencies Share purchase of Stalbridge laundry Reported revenue Ashbon Ser
Slide 6: Revenue and Profit by division 2011-2015
6 Revenue £m Profit £m 200 35 180 30 160 140 25 120 20 100 80 15 60 10 40 20 5 0 2011 2012 2013 2014 2015 0 2011 2012 2013 2014 2015 Textile Rental Drycleaning Textile Rental Drycleaning Note: Profit is stated before amortisation and impairment of intangible assets (excluding software amortisation)
Slide 7: Textile Rental
7 Textile Rental £m 2015 2014 Increase Revenue 188.2 155.0 21.4% Adjusted operating profit1 29.4 23.8 23.5% Margin 15.6% 15.4% Textile Rental includes four recognised brands Restaurant Premium High and Workwear linen and volume catering chefs’ wear hotel linen linen Note 1: Before amortisation and i
Slide 8: Textile Rental
8 Textile Rental Revenue growth of 21.4%, Ashbon laundry rebranded including £23.4m from as Stalbridge London Linen and Ashbon Apparelmaster continuing to £4.0m capital investment invest to improve programme at London productivity levels Linen to commence shortly and will take up to 15 months to com
Slide 9: The UK Textile Rental market can be analysed as follows
9 The UK Textile Rental market can be analysed as follows: Market Participants JSG Representation Estimated total Estimated JSG market Share Workwear JSG, Berendsen Apparelmaster £195.0m 45.0% Hotels and Berendsen, Brilliant, Ashbon, Bourne, £555.0m 18.0% Restaurants Afonwen, JSG, AAA Linen Stalbrid
Slide 10: Diverse customer base with over 45,000 accounts
10 Diverse customer Strong organic sales base with over High proportion of Average workwear and customer 45,000 accounts contract based customer spend by retention across the serviced by over 560 revenues location c£36 p/w four brands commercial vehicles Continued capital Continued focus on Improved
Slide 11: Drycleaning
11 Drycleaning £m 2015 2014 Change Revenue 46.2 55.4 (16.6%) 1 Adjusted operating profit 2.0 1.6 25.0% Margin 4.3 % 2.9 % Continuing In-store development of Restructuring representation alternative, more successfully Margin improved to increases to 143 convenient collection completed with the 4.3% w
Slide 12: Exceptional items
12 Continuing, £m 2015 2014 Restructuring costs – Textile Rental 1.0 1.3 Restructuring costs – Drycleaning 6.5 - Acquisition related costs 1.5 0.6 Pension costs - 4.9 Total 9.0 6.8 Textile Rental Drycleaning Acquisition related Restructuring costs - Restructuring costs - costs – final costs arising
Slide 13: Bank Facility, Hedging and Interest
13 Bank Facility Hedging Interest • New £100.0m facility: £100.0m RCF • New hedging swaps in place from • Interest cost (excluding notional expiring April 2020 Jan 2016 which hedge: pension interest cost) of £2.1m - £15.0m at 1.470% to Jan 2019; and (2014: £1.6m) • RCF at LIBOR + applicable margin -
Slide 14: Pensions and Tax
14 Pensions Tax • Net deficit of £11.9m (Dec 2014: • Effective tax rate1 on adjusted profit £13.8m) before tax of 19.5% (2014: 22.4%) • Reduction largely due to an increase in the discount rate applied to liabilities • Deficit recovery payments of £1.9m (2014: £2.0m) and a further £1.9m expected in
Slide 15: Outlook and priorities: Textile Rental, Drycleaning, Financials
15 Textile Rental Drycleaning Financials • Continued expansion of our • Streamlined branch portfolio • Zip acquisition completed January presence in the Textile Rental market focusing on service and convenience 2016 increasing net debt from reported £71.2m to £89.1m on a pro • Identify further earni
Slide 16: Zip acquisition, January 2016
16 Close to Facilitates Acquired on 31 Based in SE motorway logistical January 2016 for Birmingham 90 networks and synergies and £15.0m and miles from extends growth within additional debt of existing Bourne geographical existing customer £2.7m facility reach base £2.7m of new Well invested Transfer
Slide 17: Thank You
(F)JOHNSON THANK YOU
Slide 18: Revenue and Operating Profit by segment
18 2015 2014 Operating Operating Revenue Profit1 Revenue Profit1 £m £m £m £m Textile Rental - Trading 188.2 28.2 155.0 22.7 - Allocated Income - 1.2 - 1.1 188.2 29.4 155.0 23.8 Drycleaning - Drycleaning 46.2 2.0 55.4 1.6 Unallocated Costs - Group Costs - (3.5) - (3.6) TOTAL 234.4 27.9 210.4 21.8 Not