Slide 1: 2013 Half Year Results Presentation
2 0 1 3 H A L F Y E A R R E S U LT S P R E S E N TAT I O N CHARLES SKINNER, CHIEF EXECUTIVE ADAM COUNCELL, GROUP FINANCE DIRECTOR
Slide 2: Highlights
Highlights 2 • Adjusted PBT up 95% to £4.1m • Adjusted EPS up 65% to 4.3p • Document Management operating profit up 40% to £4.9m • Office Relocation operates profitably in seasonally weaker first half • Completion of three acquisitions, including File & Data • Net cash inflow before capex of £4.5m •
Slide 3: Main events during Period
Main events during Period 3 January – April Sargents integrated into Harrow Green March File & Data acquired for £6.1m - £6.2m March Equity raising of £7.0m April Atix acquired for £1.0m April IT Efficient acquired for £1.8m – £2.2m
Slide 4: Overview of Operations
Overview of Operations 4 Document Management Office Relocation One of the market leaders in UK record management The market leader in UK office relocation with national coverage Nationwide secure shredding and recycling IT relocation (50% shareholding) Scanning IT Asset Disposal
Slide 5: Group Overview
Group Overview 5 National coverage of mainland Britain, but 60% of revenues in London and South East
Slide 6: Financial Review
FINANCIAL REVIEW
Slide 7: Financial Summary
Financial Summary 7 H1 2013 H1 2012 % Change Revenue (£m) 24.6 18.2 35% Adjusted EBITDA (£m) * 5.2 3.1 68% Adjusted operating profit (£m) * 4.5 2.6 73% Adjusted PBT (£m) * 4.1 2.1 95% Adjusted EPS (p) ** 4.3 2.6 65% Dividend per share (p) 0.6 0.4 50% * Before discontinued operations, amortisation of
Slide 8: Document Management
Document Management 8 Adjusted operating Revenue (£m) Margin % profit (£m) H1 2012 10.1 3.5 35% Acquisitions 3.3 0.7 Organic Growth 0.3 0.3 Cost savings in acquired RM 0.4 businesses H1 2013 13.7 4.9 36% Change +36% +40% +100bps
Slide 9: Office Relocation
Office Relocation 9 Adjusted operating Revenue (£m) Margin % profit (£m) H1 2012 8.1 (0.1) (1%) Acquisitions 2.5 0.0 Organic Growth 0.3 0.1 Gross margin improvement 0.1 Overhead reductions 0.3 H1 2013 10.9 0.4 4% Change +35% n/a +500bps
Slide 10: Balance Sheet
Balance Sheet 10 H1 2013 H1 2012* £m £m Non-current assets 63.4 48.5 Trade and other current assets 18.7 14.6 Cash and cash equivalents 3.5 1.0 Current Assets 22.2 15.6 Trade and other current liabilities (15.9) (12.2) Financial liabilities – borrowings (6.8) (5.6) Current liabilities (22.7) (17.8)
Slide 11: Summary Cash Flow
Summary Cash Flow 11 H1 2013 £m H1 2012 £m Adjusted EBITDA 5.2 3.1 Exceptional costs (1.5) (2.0) EBITDA after exceptionals 3.7 1.1 Working capital 0.8 (2.4) Net cash from operations 4.5 (1.3) Capex (1.6) (0.9) Interest/Tax (0.4) (0.6) Acquisitions (9.4) (6.7) Proceeds from share issues 7.0 8.1 Finan
Slide 12: Analysis of Exceptional Costs
Analysis of Exceptional Costs 12 H1 2013 £m Acquisition Costs 0.1 Restructuring and redundancy costs 0.6 Provision for bad debt 0.8 TOTAL 1.5
Slide 13: Debt Facilities
Debt Facilities 13 H1 2013 Headroom £m £m Cash 2.4 3.9 Term loan (14.0) 0.0 RCF (3.0) 0.0 CID facility (3.2) 2.1 Total net debt 17.8 6.0
Slide 14: Operational Review
O P E R AT I O N A L R E V I E W
Slide 15: Document Management Division
Document Management Division 15 Records Management - Revenue, EBIT and margin trends 6 Month rolling Revenue and EBIT average Margin % £'000 2,500 45 40 2,000 35 30 1,500 25 RM Revenue 20 RM EBIT 1,000 15 RM margin 500 10 5 0 0 Dec-09 Dec-10 Dec-11 Dec-12 Jun-09 Aug-09 Apr-10 Apr-13 Oct-09 Jun-10 Au
Slide 16: Document Management Division: Records Management
Document Management Division 16 Records Management Sales structure overhauled Occupancy rate currently 96% (91% when new Wiltshire space is onstream) Integration of File & Data and Atix proceeding to plan New capacity developed at underground storage facility in Wiltshire New capacity deve
Slide 17: Document Management Division: Restore Shred
Document Management Division 17 Restore Shred Turnover rising Strong new business activity – particularly from Group-generated leads Increased geographical coverage planned
Slide 18: Document Management Division: Restore Scan
Document Management Division 18 Restore Scan Turnover weaker Lower cost base ensured profitable operation Now integrated fully into division Benefitting from divisional sales force Major projects being tendered
Slide 19: Document Management Division: Restore IT Efficient
Document Management Division 19 Restore IT Efficient IT asset disposal and recycling Blue-chip customer base Attractive business model Excellent fit with other group activities and customer base Huge growth opportunity
Slide 20: Office Relocation Division
Office Relocation Division 20 UK market leader Benefiting from significant overhead reduction Sargents integration to reduce overhead further Improving gross margin Similar customer base to other Group operations
Slide 21: Outlook
Outlook 21 Core Records Management business remains robust with strong pipeline High growth opportunities in smaller operations, notably Restore Shred and Restore IT Efficient Harrow Green trading profitably; strong progress anticipated in second half Benefits of Group-wide Customer Relation
Slide 22: Contact details
22 Contact details: Charles Skinner: 0207 409 2420 cskinner@restoreplc.com Adam Councell: 0207 409 2420 acouncell@restoreplc.com www.restoreplc.com