Johnson Service Group Plc · LSE:JSG
Johnson Service — FY2021 Earnings Presentation
28 slides from Johnson Service's earnings presentation, 2022
Slide 1: Final Results 12 months ended 31 December 2021
Final Results 12 months ended 31 December 2021 Peter Egan Chief Executive Officer Yvonne Monaghan Chief Financial Officer
Slide 2: Operational highlights
Operational highlights “…we have continued to invest in our systems, sites, people and initiatives…”
Slide 3: Operational highlights
2021 Final Results Operational highlights • Workwear continued to service customers throughout the year with volumes reaching pre-COVID levels in November 2021 • New Workwear site in Exeter opened in September increasing capacity in the South West by 20% • HORECA sites operated at various levels, pe
Slide 4: Financials
Financials “These results represent a solid performance for the Group against the challenging background of the COVID-19 pandemic…”
Slide 5: Financial highlights
2021 Final Results Financial highlights 2021 2020 Revenue (£m) 271.4 229.8 Adjusted EBITDA (£m)1,2,3 67.9 53.6 Adjusted EBITDA margin (%)1,2,3 25.0 23.3 Adjusted operating profit / (loss) (£m)2,3,4 12.7 (11.9) Adjusted operating margin (%)2,3,4 4.7 (5.2) Exceptional items (£m) 6.7 (4.3) Adjusted PBT
Slide 6: Exceptional Items
2021 Final Results Exceptional Items 2021 2020 £m £m Business acquisition costs (0.1) - Insurance claims1,2 5.9 2.5 Other costs re insurance claims (0.6) - Income from Parent Company Guarantees3 1.5 - Impairment losses re insurance claims - (1.0) Restructuring costs - (5.8) Total Exceptional Items 6
Slide 7: Cash Flow
2021 Final Results Cash Flow 2021 20201 £m £m Adjusted operating profit / (loss) 12.7 (11.9) Depreciation, impairment and software amortisation 55.2 66.2 Working capital (18.3) 24.4 fixed assets and software (24.4) (21.4) Capital expenditure rental stocks (net) (39.4) (26.0) fixed asset proceeds - 0
Slide 8: Other Financial Information
2021 Final Results Other Financial Information Interest Taxation • Interest cost of £3.3m including £1.6m relating to lease • Effective tax rate1 of (5.3)% (2020: 18.5%) liabilities and £nil relating to discontinuance of interest • £2.5m credit relating to 130% super deduction allowance hedge accoun
Slide 9: Sustainability
The Johnsons Way - JSG’s refreshed approach to sustainability Sustainability “We believe that embedding a best in class sustainability programme throughout our operations will help position us as a leader in responding to the challenges faced by the textile services industry and prove to be a differ
Slide 10: Vision 2030 Statement & Targets
2021 Final Results Vision 2030 Statement & Targets By 2030 we aim to have: Our Family Our World Our Integrity Our Communities By taking care of our Johnsons family By reducing our natural resource consumption By continuing to demonstrate our integrity By further understanding the communities and ens
Slide 11: Operations
Operations “We continue to take proactive actions to adapt our operations to ensure the Group can thrive…”
Slide 12: Investment
2021 Final Results Exeter South West New Upgrade processing sortation and facility unloading areas £24.4m London Perth Investment Automated Linen sortation New ironer line system HORECA Grantham Laundry “Automation and best in class Complete Management re-wire system equipment will continue to upgra
Slide 13: Operational Performance: Workwear
Operational Performance Workwear
Slide 14: Operational Performance Workwear
2021 Final Results Operational Performance Workwear 2021 2020 Revenue (£m) 128.9 129.5 Adjusted EBITDA (£m)1,2,3 46.3 48.7 Adjusted EBITDA margin (%)1,2,3 35.9 37.6 Adjusted operating profit (£m)2,3,4 22.5 23.5 Adjusted operating margin (%)2,3,4 17.5 18.1 Notes: 1. Adjusted operating profit plus dep
Slide 15: Operational Performance Workwear
2021 Final Results Operational Performance Workwear • Processing volumes remained relatively consistent throughout the year • Customer retention levels remain high at 95% (2020: 94%) • Existing customer satisfaction at 86.4% (2020: 85.7%), highest ever result • Sales teams returned in May 2021, incr
Slide 16: Operational Performance: HORECA
Operational Performance HORECA Hotel, Restaurant & Catering
Slide 17: Operational Performance HORECA
2021 Final Results Operational Performance HORECA Hotel, Restaurant & Catering 2021 2020 Revenue (£m) 142.5 100.3 Hotel, Restaurant Adjusted EBITDA (£m)1,2,3 26.2 8.7 & Catering Linen Adjusted EBITDA margin (%)1,2,3 18.4 8.7 Hotel Linen Adjusted operating loss (£m)2,3 (5.2) (31.5) Adjusted operating
Slide 18: Operational Performance HORECA
2021 Final Results Operational Performance HORECA Hotel, Restaurant & Catering • Volumes varied throughout the year reaching a summer peak of 87% in September 2021, falling to 60% of normal in the final two weeks of the year • Number of significant new wins at Stalbridge and London Linen in second h
Slide 19: The Future
The Future “We are continuing to focus on delivering outstanding customer service and investing in both our employees and laundry facilities.”
Slide 20: Outlook Post COVID-19
2021 Final Results Outlook Post COVID-19 Workwear HORECA Guidance • Volumes reached pre-COVID levels in • January 2022 normalised volumes of • Confident in medium and long term November 2021 70% improved to 85% in February growth prospects • Continued focus on new to rental • Further recovery of vol
Slide 21: The Future: Confident of Medium Term Growth
2021 Final Results The Future Confident of Medium Term Growth Organic Investment Growth Acquisitions Programme Opportunities • Strong customer retention • To create a market leading, best in class, modern • Ongoing expansion of geographic footprint in • Market leading position within Workwear and es
Slide 22: Appendices
JOHNSON Service Group PLC Appendices
Slide 23: Appendix 1 Segmental Analysis
2021 Final Results Appendix 1 Segmental Analysis 2021 2020 Adjusted Adjusted Operating Adjusted Operating Adjusted Revenue Profit / (Loss)1,2 EBITDA1,2,4 Revenue Profit / (Loss)1,2,3 EBITDA1,2,4 £m £m £m £m £m £m Workwear 128.9 22.5 46.3 129.5 23.5 48.7 HORECA 142.5 (5.2) 26.2 100.3 (31.5) 8.7 Texti
Slide 24: Appendix 2 Prior Year Restatement
2021 Final Results Appendix 2 Prior Year Restatement As originally Prior year Revised reported Dec 2020 adjustment Dec 2020 Adjusted operating loss1 (£m) (12.1) 0.2 (11.9) Adjusted operating margin1 (%) (5.3) - (5.2) Operating loss1 (£m) (27.4) 0.2 (27.2) Adjusted PBT1 (£m) (13.8) 0.2 (13.6) Adjuste
Slide 25: Appendix 3 Financial Track Record
2021 Final Results Appendix 3 Financial Track Record Revenue (£m) Adjusted EBITDA (£m) Adjusted Diluted EPS excluding super deduction (p) 119.0 350.6 10.5 321.1 101.4 9.3 290.9 92.3 8.7 271.4 229.8 67.9 53.6 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 1.7 -3.3 Adjusted
Slide 26: Pre-COVID Performance Built on Buy-and-Build Strategy
2021 Final Results Appendix 4 Pre-COVID Performance Built on Buy-and-Build Strategy 250 1st Covid Lockdown 200 Share Price (pence) 150 Placing 100 2nd & 3rd Covid Lockdown 50 26 2014 2015 2016 2017 2018 2019 2020 2021
Slide 27: Appendix 5 Our Executive Team
2021 Final Results Appendix 5 Our Executive Team Peter Egan Yvonne Monaghan Chief Executive Officer Chief Financial Officer Industry Experience: 29 Years Industry Experience: 37 Years Paul Carr Donald Smith Helen Wood Tim Morris Steve McKeever MD, Workwear MD, Stalbridge & London Linen MD, Hotel Lin
Slide 28: www.jsg.com
Service Group PLC www.jsg.com