Johnson Service Group Plc · LSE:JSG
Johnson Service — H1 2014 Earnings Presentation
15 slides from Johnson Service's earnings presentation, Jun 30, 2014
Slide 1: Interim Results for the 6 months ended 30 June 2014
Interim Results 2014 Interim Results for the 6 months ended 30 June 2014 Chris Sander, Chief Executive Officer Yvonne Monaghan, Chief Financial Officer
Slide 2: Highlights
Interim Results 2014 Highlights Strong overall performance Fund raising and Bourne acquisition successfully completed March 2014 Textile Rental ahead of management expectations Adjusted operating profit increased by 25.3% to £9.4 million (2013 H1: £7.5 million)1 Adjusted profit before tax
Slide 3: Financial Results: Income Statement
Interim Results 2014 Financial Results Income Statement Continuing operations 2014 H1 2013 H1 Change Revenue £101.6m £96.1m 5.7% Adjusted operating profit1 £9.4m £7.5m 25.3% 1 Adjusted operating margin 9.3% 7.8% Exceptional items £(1.4)m £(0.8)m 1 Adjusted PBT £8.5m £5.5m 54.5% 1 Adjusted EPS 2.3p 1
Slide 4: Financial Results: Cash Flow
Interim Results 2014 Financial Results Cash Flow £m 2014 H1 2013 H1 2013 FY Continuing adjusted operating profit 9.4 7.5 17.0 Depreciation and software amortisation (excl. exceptionals) 12.9 12.4 24.7 Working capital (excl. exceptionals) 0.5 1.9 1.7 Capital expenditure – Fixed assets (4.7) (2.3) (4.
Slide 5: Equity Placing and Acquisition
Interim Results 2014 Equity Placing and Acquisition Placing March 2014 Placing of approximately 10% of the issued share capital via a cashbox structure – Representing approximately 26.3 million shares – Net proceeds of £12.8m Proceeds used to: – repay bank debt – maintain balance sheet strength
Slide 6: Divisional Performance: Summary
Interim Results 2014 Divisional Performance Summary Revenue - 2014 H1 Revenue - 2013 H1 27% 30% 70% 73% Profit - 2014 H1 Profit - 2013 H1 4% 8% 96% 92% Drycleaning Textile Rental 5
Slide 7: Divisional Performance: Textile Rental
Interim Results 2014 Divisional Performance Textile Rental 2014 H1 2013 H1 Change Revenue (£m) 74.4 67.6 10.1% Trading result 10.3 8.1 27.2% Allocated income 0.5 0.5 - Adjusted operating profit1 (£m) 10.8 8.6 25.6% Margin 14.5% 12.7% Notes: 1 Before amortisation and impairment of intangible assets (
Slide 8: Divisional Performance: Textile Rental
Interim Results 2014 Divisional Performance Textile Rental Overall revenue growth of 10.1%, including £6.3m from Bourne Improved overall margin Increased sales to existing workwear customers complementing new business wins Stalbridge replaced much of the volume given up in 2013 H1 Bourne a
Slide 9: Divisional Performance: Drycleaning
Interim Results 2014 Divisional Performance Drycleaning £m 2014 H1 2013 H1 Change Revenue 27.2 28.5 (4.6%) 1 Adjusted operating profit 0.4 0.7 (42.9%) Margin 1.5% 2.5% Reduction in revenue from changing mix of locations Portfolio of 321 branches (June 2013: 336) In addition there were 29 Waitr
Slide 10: Exceptional Items
Interim Results 2014 Exceptional Items Continuing, £m 2014 H1 2013 H1 2013 FY Restructuring costs 0.8 0.8 1.2 Acquisition related costs (fees) 0.6 - - Pension credits - - (0.6) Total 1.4 0.8 0.6 Restructuring costs in 2014 relate to the relocation of an existing processing facility. A further £1.5
Slide 11: Bank Facilities
Interim Results 2014 Bank Facilities A £70.0m facility (December 2013: £50.0m; June 2013: £75.5m), £60.0m expires May 2018 and £10.0m expires Feb 2015 RCF (including overdrafts): £60.0m at LIBOR + margin Short Term Loan: £10.0m at LIBOR + 1.5% margin Margin on the RCF ranges from 1.5% to 2.25%
Slide 12: Pensions and Tax
Interim Results 2014 Pensions and Tax Pensions Net IAS 19 Pension liability of £6.2m (Dec 2013: £2.4m) – impacted mainly by changes in assumptions used in valuing liabilities (loss of £7.2m) – additional pension contributions of £1.0m from Group in H1 with a further £0.9m expected in H2 Tax 1 Un
Slide 13: The Group Moving Forward
Interim Results 2014 The Group Moving Forward – Further acquisitions within Textile Rental – Continued investment in existing locations to drive efficiencies and increase capacity – Organic growth from existing services – Identify additional complementary market sectors within Textile Rental – Ongoi
Slide 14: Conclusion
Interim Results 2014 Conclusion Strong performance from Textile Rental Significant headroom for future investment plans Bank facilities in place to May 2018 Continuing progressive dividend policy reflects Board’s confidence in the prospects of the Group going forward Full year results expe
Slide 15: Appendix - Segmental Results
Interim Results 2014 Appendix 1 - Segmental Results 2014 H1 2013 H1 Operating Operating Revenue Profit1 Revenue Profit1 £m £m £m £m Textile Rental - Trading 74.4 10.3 67.6 8.1 - Allocated Income - 0.5 - 0.5 74.4 10.8 67.6 8.6 Drycleaning - Retail Drycleaning 27.2 0.4 28.5 0.7 Unallocated Costs - Gro
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