Slide 1: 2017 Full Year Results
2017 Full Year Results
Slide 2: Highlights
Highlights • Group revenue up 36% to £176.2m (2016: £129.4m) • Document Management revenue up 41% • Relocation revenue up 25% • Group adjusted profit before tax up 36% to £31.2m (2016: £23.0m) • Document Management adjusted operating profit up 41% • Relocation adjusted operating profit up 16% • Adju
Slide 3: Financial Review
Financial Review
Slide 4: Consolidated Income Statement (Adjusted)
Consolidated Income Statement (Adjusted) 10.0 176.2 2017 2016 Change 36.8 Revenue (£’m) 176.2 129.4 +36% 129.4 Adjusted operating profit (£’m) 33.7 25.0 +35% Finance costs (£’m) (2.5) (2.0) +25% Adjusted PBT (£’m) 31.2 23.0 +36% Revenue Standard tax charge 19.25% 20.0% (£’m) Adjusted profit for peri
Slide 5: Document Management
Document Management £’m 2017 2016 YOY change 126.9 Revenue (£’m) 126.9 90.1 +41% 90.1 Operating profit (£’m) 31.0 22.0 +41% +41% Operating margin 24.4% 24.4% - • Key revenue movements: • Full year contribution of PHS DS 2016 2017 • 6 bolt on acquisitions in 2017 • Organic growth of 5% £’m 31.0 • Ope
Slide 6: Relocation
Relocation £’m 2017 2016 YOY change 49.3 Revenue (£’m) 49.3 39.3 +25% 39.3 +25% Operating profit (£’m) 5.2 4.5 +16% Operating margin 10.5% 11.5% -100bps • Key revenue movements: 2016 2017 • ITAD Works acquisition in Feb 2017 £’m • Organic growth of 13% reflects: 5.2 • Additional element of MOD contr
Slide 7: Exceptional Costs
Exceptional Costs £’m 2017 2016 Restructuring and redundancy costs 6.7 6.2 Transaction costs 0.5 1.2 Box relocation and associated costs 0.5 0.4 Other exceptional costs 7.8 2.5 Total exceptional costs 15.5 10.3 • Largest single item in exceptional costs is £7.1m cash settlement of 75% of 1st tranche
Slide 8: Cash Flow
Cash Flow 2017 £m 2016 £m Adjusted EBITDA 39.7 29.3 Exceptional costs (excluding non-cash EIP credit) (16.2) (10.3) Adjusted EBITDA after exceptionals 23.5 19.0 Working capital (including Gain/Loss on sale of FA) (7.8) (0.8) Net cash from operations 15.7 18.2 Capex (5.3) (5.2) Interest (2.2) (2.0) T
Slide 9: Balance Sheet and Debt Facilities
Balance Sheet and Debt Facilities 2017 2016 £m £m Non-current assets 243.9 240.7 Trade and other current assets 45.4 40.3 Cash and cash equivalents 10.7 12.9 Current Assets 56.1 53.2 Trade and other current liabilities (36.0) (36.9) Financial liabilities – borrowings (9.4) (6.8) Current liabilities
Slide 10: Financial Summary
Financial Summary • Revenue up 36% reflecting PHS DS and 2017 bolt on acquisitions • Group organic growth strong at 7% • Operating margins consistent at 19% • Bank facilities increased and term extended • Leverage slightly under 2x pro forma EBITDA • Total dividend up 25% to 5p
Slide 11: Operational Summary
Operational Summary
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: Restore Records Management
Operational Review Restore Records Management • Positive net box growth despite major exit and increased destruction rate • Business environment receptive to price increases • Operating margins stable and expected to improve incrementally with ongoing property rationalisation • Integration of PHS DS
Slide 14: Operational Review: Restore Datashred
Operational Review Restore Datashred • 14 well-invested UK sites with new London flagship under construction • Strong organic growth • Expected to benefit from GDPR introduction in 2018 • Scope to improve operating margins following systems implementation • 5 acquisitions in 2017 • Significant scope
Slide 15: Operational Review: Restore Digital
Operational Review Restore Digital • Healthy organic growth • Year-on-year operating margin improvement • Increasingly strong operational performance following investment in management and facilities • Renewal of major seasonal contract • Strong core base of major customers • Significant scope for c
Slide 16: Operational Review: Restore Harrow Green
Operational Review Restore Harrow Green • Strong year-on-year performance, particularly in core London relocation market • Additional multi-year contract with MOD • Strong 2018 order book • High quality customer base with long term relationships • Increasingly preeminent market leader
Slide 17: Operational Review: Restore Technology
Operational Review Restore Technology IT Lifecycle Services • Very strong recent performance • Highly successful acquisition of The ITAD Works • High-growth, attractive market • Scope for market consolidation IT Relocation • Record year on revenues and profits • Working more closely with Restore Har
Slide 18: Acquisitions 2017
Acquisitions 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 Lombar
Slide 19: Group Cross-Selling
Group Cross-Selling • One CRM system across Group • Compliance with Group CRM mandatory Number of top 500 customers by services used • In place for 6+ years • Comprehensive database of UK offices • Facilitates new business from existing customers wins 186 • More services increases stickiness 145 • T
Slide 20: Summary and Outlook
Summary and Outlook • Strong year-on-year performance with solid organic growth • Successful integration of PHS DS acquisition • Five well-positioned business streams • Records Management: scope to increase margins further • Shredding: Datashred well-positioned to grow and consolidate its market • S