Slide 1: Interim Results for the 6 months ended 30 June 2012
Interim Results 2012 Interim Results for the 6 months ended 30 June 2012 John Talbot, Executive Chairman Yvonne Monaghan, Finance Director
Slide 2: Highlights
Interim Results 2012 Highlights Good progress and solid trading performance bolstered by strategic acquisitions – Textile Rental trading well, with integration of Cannon ahead of schedule – Facilities Management trading in line with expectations and Nickleby integration largely complete – Restruct
Slide 3: Financial Results: Income Statement
Interim Results 2012 Financial Results Income Statement Continuing operations 2012 2011 Change 1 Revenue £120.7m £113.6m 6.3% Adjusted operating profit2 £7.7m £8.4m (8.3%) Adjusted operating margin2 6.4% 7.4% Exceptional items £(3.7)m - Adjusted PBT2 £6.0m £6.5m (7.7%) Adjusted EPS2 1.9p 1.8p Fully
Slide 4: Cash Flow at 30 June 2012
Interim Results 2012 Cash Flow at 30 June 2012 £m 2012 2011 Adjusted operating profit 7.7 8.4 Depreciation and software amortisation (excl. exceptionals) 11.7 9.9 Working capital (excl. exceptionals) (0.4) (1.3) Capital expenditure – Fixed assets (3.6) (2.0) – Rental stocks (net) (8.6) (6.5) – Fixed
Slide 5: Divisional Performance: Textile Services
Interim Results 2012 Divisional Performance Textile Services Revenue1 (£m) 2012 2011 Change Textile Rental 64.0 58.0 10.3% Drycleaning 37.0 37.9 (2.4%) Total 101.0 95.9 5.3% 2 Adjusted operating profit (£m) Textile Rental 7.7 7.7 Drycleaning (0.2) 0.6 Total 7.5 8.3 Margin 7.4% 8.7% Notes: 1 Excludin
Slide 6: Divisional Performance: Textile Rental
Interim Results 2012 Divisional Performance Textile Rental 1 Revenue (£m) 2012 2011 Change Existing Business 60.4 58.0 4.1% Cannon 3.6 - Total 64.0 58.0 10.3% Adjusted operating profit2 (£m) Existing Business 7.6 7.2 5.6% Cannon (0.4) - Allocated income 0.5 0.5 -% Total 7.7 7.7 -% Margin 12.0% 13.3%
Slide 7: Divisional Performance – Textile Services
Interim Results 2012 Divisional Performance – Textile Services Textile Rental Johnsons Apparelmaster Improved new business sales and reduced number of customer terminations Transfer of work to existing laundries on track Four Cannon plants to be closed by the end of September 2012 Stalbridge L
Slide 8: Divisional Performance – Drycleaning
Interim Results 2012 Divisional Performance – Textile Services Drycleaning Retail £m 2012 2011 1 Revenue 33.1 33.7 2 Adjusted operating (loss) / profit (0.1) 0.5 Margin (0.3%) 1.5% Total like for like sales decrease of 0.4% (2011 H1: decrease of 0.7%; 2011 FY: decrease of 0.3%) Branches now clos
Slide 9: Divisional Performance - FM
Interim Results 2012 Divisional Performance - FM Facilities Management £m 2012 2011 Change Revenue1 19.7 17.7 11.3% 2 Adjusted operating profit 2.0 2.0 -% Margin 10.2% 11.3% Significant increase in revenue including £1.6 million from the Nickleby acquisition Integration of Nickleby on track and
Slide 10: Group Costs
Interim Results 2012 Group Costs £m 2012 2011 Administration costs 1.4 1.4 Management incentive costs 0.4 0.4 Carbon Reduction Commitment (CRC) - 0.1 Total 1.8 1.9 Underlying cost base held at 2011 levels 9
Slide 11: Exceptional Items – H1 2012
Interim Results 2012 Exceptional Items – H1 2012 Continuing, £m 2012 2011 Acquisition related costs (fees) 0.7 - Restructuring costs 2.7 - Pension costs 0.3 - Total 3.7 - Acquisition costs in respect of Cannon and Nickleby Full year restructuring cost estimated at £3.3m relating to the acquisiti
Slide 12: Exceptional Items – Drycleaning Restructuring
Interim Results 2012 Exceptional Items – Drycleaning Restructuring Estimated £23.9m to be recognised in 2012 H2 Estimated £3.7m is non-cash and only £3.4m represents an incremental cash requirement, which will be funded from existing facilities Restructuring not expected to increase debt level
Slide 13: Bank Facilities
Interim Results 2012 Bank Facilities Facility is currently £78.5m (December 2011: £71.95m) and expires May 2015 Term loan: £53.5m at LIBOR + margin, reducing by £1.5m in December 2012 and June 2013 and by £3.0m per half year from December 2013 RCF: £25.0m at LIBOR + margin, reducing by £2.5m in
Slide 14: Pensions and Tax
Interim Results 2012 Pensions and Tax Pensions Net IAS 19 Pension liability of £12.9m (Dec 2011: £14.1m) – higher than assumed return on assets – lower discount rate assumption increasing liabilities – additional pension contributions, or equivalent, of £2.0m from continuing Group in 2012, and 201
Slide 15: The Group Moving Forward
Interim Results 2012 The Group Moving Forward Textile Services Textile Rental – Completion of Cannon closures by the end of September ahead of plan – Efforts continue to drive margin improvement from transferred work – Revenue growth remains a focus Drycleaning – Closure of 103 branches complete
Slide 16: Conclusion
Interim Results 2012 Conclusion Strong performance from Textile Rental Full benefit of acquisitions yet to be realised Bank facilities in place to May 2015 Targeted investment in the businesses to continue Continuing progressive dividend policy reflects Board’s confidence in the prospects
Slide 17: Appendix 1 - Segmental Results
Interim Results 2012 Appendix 1 - Segmental Results 2012 2011 Operating Operating 1 Profit2 1 Revenue Revenue Profit2 £m £m £m £m Textile Rental - Existing Business 60.4 7.6 58.0 7.2 - Cannon 3.6 (0.4) - - - Allocated Income - 0.5 - 0.5 64.0 7.7 58.0 7.7 Drycleaning - Retail Drycleaning 33.1 (0.1) 3