Slide 1: 2018 Half Year Results
2018 Half Year Results
Slide 2: Highlights
Highlights Group revenue up 9% to £95.1m (H1 2017: £86.9m) Document Management revenue up 8% Relocation revenue up 14% Group adjusted profit before tax up 13% to £17.3m (H1 2017: £15.3m) Document Management adjusted operating profit up 11% Relocation adjusted operating profit up 35% Ad
Slide 3: Financial Review
FINANCIAL REVIEW
Slide 4: Consolidated Income Statement
Consolidated Income Statement 3.1 95.1 H1 2018 H1 2017 Change Revenue (£m) 95.1 86.9 9% 5.1 Adjusted operating profit (£m) * 18.9 16.5 15% Finance costs (£m) 1.6 1.2 33% Adjusted PBT (£m) * 17.3 15.3 13% 86.9 Standard tax charge 19% 19.5% Revenue Adjusted profit for period (£m) * 14.0 12.3 14% (£’m)
Slide 5: Document Management
Document Management H1 2018 H1 2017 YOY change Revenue £’m 69.9 64.8 Revenue (£m) 69.9 64.8 8% +8% Operating profit (£m) 17.6 15.8 11% Operating margin 25.2% 24.4% +80 bps 2017 2018 • Revenue by business stream: • Restore Records Management £38.8m (2017: £34.3m) Operating Profit £’m • Restore Datash
Slide 6: Relocation
Relocation H1 2018 H2 2017 YOY Change Revenue £’m 25.2 22.1 Revenue (£m) 25.2 22.1 14% +14% Operating profit (£m) 2.7 2.0 35% Operating margin 10.7% 9.0% +170 bps • Revenue by business stream: 2017 2018 • Restore Harrow Green £17.6m (2017: £15.8m) Operating Profit £’m • Restore Technology £7.6m (201
Slide 7: Exceptional Costs
Exceptional Costs £m H1 2018 H1 2017 Restructuring costs 2.0 3.7 Transaction costs 1.7 0.1 Box relocation and associated costs 0.0 0.3 Other exceptional costs 0.6 7.8 Total exceptional costs 4.3 11.9 • Restructuring costs reflect • Smaller acquisitions in 2017/18 • Initial TNT BS double running cost
Slide 8: Cash Flow
Cash Flow H1 2018 £m H1 2017 £m Adjusted EBITDA 22.1 19.5 Exceptional costs* (4.3) (12.7) Adjusted EBITDA after exceptionals 17.8 6.8 Working capital (including Gain/Loss on sale of FA) (7.2) (3.7) Net cash from operations 10.6 3.1 Capex (5.2) (2.3) Interest (0.9) (1.1) Tax (2.0) (1.4) Acquisitions
Slide 9: Balance Sheet and Debt Facilities
Balance Sheet and Debt Facilities H1 2018 H1 2017 Non-current assets 331.9 240.8 Trade and other current assets 55.3 45.6 Cash and cash equivalents 15.7 15.4 Current Assets 71.0 61.0 Trade and other current liabilities (43.8) (40.9) Financial Liabilities – borrowings - (6.9) Current liabilities (43.
Slide 10: Financial Summary
Financial Summary • Revenue up 9% • Operating margins improved to 20% • Interim dividend up 20% to 2.0 p • Pro forma leverage 2.3x at 30 June 2018 • Banking facilities extended and restructured • TNT BS to be integrated in H2 2018 8
Slide 11: Operational Review
OPERATIONAL REVIEW
Slide 12: Business Stream Overview
Business Stream Overview • UK no. 2 in consolidated, steadily growing • Market leader growing revenues and margins market • consistent high operating margins with scope for improvement • Strong earnings visibility • Growing strongly in an exciting market • One of two major national operators in grow
Slide 13: Operational Review: Restore Records Management
Operational Review Restore Records Management • Revenue growth on flat volumes as GDPR triggers destruction purges and projects • Operating margins stable and likely to rise • Long-term property rationalisation continues including Motherwell exit and Rainham build • Capacity utilisation 93% • Recent
Slide 14: Operational Review: Restore Datashred
Operational Review Restore Datashred • Adequate trading performance • Operational changes to drive margins • Move Winchester • Close Telford • Changes to management team • Better reporting systems • Major investment in new London and Scotland sites • Healthy, growing market • Significant scope for f
Slide 15: Operational Review: Restore Digital
Operational Review Restore Digital • Profit and operating margin growth • Major seasonal contract successfully executed • 3 acquisitions including ORS in Southampton • Eventual integration of TNT BS scanning activities • Attractive market for well-invested business 12
Slide 16: Operational Review: Restore Harrow Green
Operational Review Restore Harrow Green • Continues to grow revenues and operating margins • New facility in East London • Strong market leader with stable blue-chip customer base 13
Slide 17: Operational Review: Restore Technology
Operational Review Restore Technology IT Lifecycle Services • Increasingly important Group activity • Attractive returns on investment in growth market • Major investment in new flagship facility in Bedford • Recent acquisition of Spinnaker in Portsmouth brings WEEE capability • Significant scope fo
Slide 18: Group Cross-Selling
Group Cross-Selling • One CRM system across Group • Compliance with Group CRM mandatory • In place for 7+ years • Comprehensive database of UK offices • Makes new business from existing customers far easier • More services increases stickiness • Tight customer relationships make it easy to adapt to
Slide 19: TNT Business Solutions Integration
TNT Business Solutions Integration • Integration delayed by CMA investigation but now taking place • Smooth transfer of largely public sector customer base • 3 excellent facilities with 2 smaller sites being exited • Development scope at 2 freehold properties • Trading well with high margins reflect
Slide 20: Summary and Outlook
Summary and Outlook • Strong performance against tough comparator period • Second half comparator much gentler • Well-invested with best-in-class facilities • Scope to drive up operating margins across the Group • Healthy markets • Latest major acquisition performing well • Excellent platform for co