Slide 1: Interim Results for the 6 months ended 30 June 2013
Interim Results 2013 Interim Results for the 6 months ended 30 June 2013 John Talbot, Executive Chairman Yvonne Monaghan, Finance Director
Slide 2: Highlights
Interim Results 2013 Highlights Disposal of FM division completed on 7 August 2013 Textile Rental traded well with the Cannon acquisition now fully integrated Drycleaning like for like sales increase of 3.4% and significant improvement in adjusted operating profit Adjusted operating profit i
Slide 3: Financial Results: Income Statement
Interim Results 2013 Financial Results Income Statement Continuing operations 2013 H1 2012 H1 Change (Restated) Revenue £96.1m £97.1m (1.0%) Adjusted operating profit1 £7.5m £5.8m 29.3% 1 Adjusted operating margin 7.8% 6.0% Exceptional items £(0.8)m £(1.9)m 1 Adjusted PBT £5.5m £3.6m 52.8% 1 Adjuste
Slide 4: Financial Results: Cash Flow
Interim Results 2013 Financial Results Cash Flow £m 2013 H1 2012 H1 2012 FY Continuing adjusted operating profit 7.5 5.8 15.3 Depreciation and software amortisation (excl. exceptionals) 12.4 11.4 23.4 Working capital (excl. exceptionals) 1.9 (0.2) (2.9) Capital expenditure – Fixed assets (2.3) (3.2)
Slide 5: Divisional Performance: Textile Rental
Interim Results 2013 Divisional Performance Textile Rental 2013 H1 2012 H1 Change Revenue (£m) 67.6 64.0 5.6% Operating profit 8.1 7.2 12.5% Allocated income 0.5 0.5 - Adjusted operating profit1 (£m) 8.6 7.7 11.7 % Margin 12.7% 12.0% Notes: 1 Before intangibles amortisation and impairment (excluding
Slide 6: Divisional Performance: Textile Rental
Interim Results 2013 Divisional Performance Textile Rental Overall revenue growth of 5.6% Improved margin Cannon acquisition fully integrated, retaining Newmarket plant Reduced garment purchases due to high levels last year as part of the integration of the Cannon business Corporate hospit
Slide 7: Divisional Performance: Drycleaning
Interim Results 2013 Divisional Performance Drycleaning £m 2013 H1 2012 H1 Change Revenue 28.5 33.1 (13.9%) 1 Adjusted operating profit / (loss) 0.7 (0.1) 800.0% Margin 2.5% (0.3%) Total like for like sales increase of 3.4% (2012 H1: decrease of 0.4%; 2012 FY: increase of 1.0%) Reduced revenue,
Slide 8: Exceptional Items
Interim Results 2013 Exceptional Items Continuing, £m 2013 H1 2012 H1 2012 FY Restructuring costs 0.8 1.2 24.8 Acquisition related costs (fees) - 0.4 0.4 Pension costs - 0.3 0.3 Total 0.8 1.9 25.5 2013 restructuring cost re Drycleaning, further £0.4m expected in H2 Total estimated Drycleaning re
Slide 9: Bank Facilities
Interim Results 2013 Bank Facilities Facility is currently £50.0m (December 2012: £77.0m, June 2013: £75.5m) and expires May 2015 Term Loan: £25.0m at LIBOR + margin, no further reductions in facility RCF: £25.0m at LIBOR + margin Margin ranges from 2.5% to 3.0%; 2.67% average during H1 2013;
Slide 10: Pensions and Tax
Interim Results 2013 Pensions and Tax Pensions Change to IAS 19 rules results in increased notional interest charges going forward; 2012 figures restated Net IAS 19 Pension liability of £6.9m (Dec 2012: £12.9m) – higher than assumed return on assets (gain of £8.5m) – change in assumptions increa
Slide 11: The Group Moving Forward
Interim Results 2013 The Group Moving Forward Textile Rental – Acquisitions to broaden range of services – Opportunities within the UK – Supply chain improvements – Continued investment in energy efficient plant – Increased processing capacity for hotel linen Drycleaning – Branch investment prog
Slide 12: Conclusion
Interim Results 2013 Conclusion Successful disposal of FM business Strong performance from continuing business Significant reduction in net debt Bank facilities in place to May 2015 Targeted investment in the businesses to continue Continuing progressive dividend policy reflects Board’s
Slide 13: Appendix 1 - Segmental Results
Interim Results 2013 Appendix 1 - Segmental Results 2013 H1 2012 H1 Operating Operating Revenue Profit1 Revenue Profit1 £m £m £m £m Textile Rental - Existing Business 67.6 8.1 64.0 7.2 - Allocated Income - 0.5 - 0.5 67.6 8.6 64.0 7.7 Drycleaning - Retail Drycleaning 28.5 0.7 33.1 (0.1) 28.5 0.7 33.1