Slide 1: 2014 Half Year Results Presentation
2 0 1 4 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 SEPTEMBER 2014
Slide 2: Highlights
Highlights 1 Revenue up 24% Organic growth up 12% Acquisition growth up 12% Adjusted PBT up 22% Adjusted EPS up 21% Interim dividend up 33%
Slide 3: Main events during Period
Main events during Period 2 Three Records Management acquisitions One Shred acquisition Increase to majority stake in Relocom New bank facility Three new non-executive directors in last 9 months
Slide 4: Overview of Operations
Overview of Operations 3 Document Management Office Relocation One of the market leaders in The market leader in UK UK record management office relocation with national coverage Nationwide secure IT Asset Disposal shredding and recycling IT relocation Scanning (83% shareholding)
Slide 5: Group Overview
Group Overview 4 National coverage of mainland Britain, but over 60% of revenues in London and South East Restore Document Management Restore Shred Restore Scan Harrow Green Restore IT Efficient Relocom
Slide 6: Financial Review
FINANCIAL REVIEW
Slide 7: Financial Summary
Financial Summary 6 H1 2014 H1 2013 % Change Revenue (£m) 30.6 24.6 24% Adjusted EBITDA (£m) * 6.2 5.2 19% Adjusted operating profit (£m) * 5.4 4.5 20% Adjusted PBT (£m) * 5.0 4.1 22% Adjusted EPS (p) ** 5.2 4.3 21% Dividend per share (p) 0.8 0.6 33% * Before amortisation of intangible assets, excep
Slide 8: Document Management Division
Document Management Division 7 Adjusted operating Revenue (£m) Margin % profit (£m) H1 2013 13.4 4.7 35% Acquisitions 1.6 0.2 Organic Growth 1.0 0.2 Cost savings in acquired RM 0.2 businesses H1 2014 16.0 5.3 33% Change +19% +13% -200bps
Slide 9: Relocations Division
Relocations Division 8 Adjusted operating Revenue (£m) Margin % profit (£m) H1 2013 11.2 0.6 5% Acquisitions 1.3 0.1 Organic Growth 2.1 0.3 H1 2014 14.6 1.0 7% Change +30% +67% +200bps
Slide 10: Balance Sheet
Balance Sheet 9 H1 2014 H1 2013 £m £m Non-current assets 71.8 63.4 Trade and other current assets 22.6 18.7 Cash and cash equivalents 4.2 3.5 Current Assets 26.8 22.2 Trade and other current liabilities (16.4) (15.9) Financial liabilities – borrowings (0.4) (6.8) Current liabilities (16.8) (22.7) Fi
Slide 11: Summary Cash Flow
Summary Cash Flow 10 H1 2014 £m H1 2013 £m Adjusted EBITDA 6.2 5.2 Exceptional costs (0.5) (1.5) EBITDA after exceptionals 5.7 3.7 Core working capital (0.3) 0.7 Post acquisition working (1.4) 0.0 capital Growth working capital (1.5) 0.0 Net cash from operations 2.5 4.4 Capex (1.4) (1.6) Interest/Ta
Slide 12: Capex
Capex 11 H1 2014 £m Investment in shredding capability 0.3 Growth capex – racking and facilities 0.7 Maintenance capex 0.4 TOTAL 1.4 The majority of capex relate to growth Maintenance capex is low compared to depreciation of £0.8m
Slide 13: Analysis of Exceptional Costs
Analysis of Exceptional Costs 12 H1 2014 £m Acquisition Costs 0.1 Restructuring and redundancy costs 0.4 File and Data deferred consideration (0.1) Other 0.1 Total 0.5
Slide 14: Debt Facilities
Debt Facilities 13 H1 2014 FY 2013 £m £m RCF (26.0) (3.0) Cash 3.8 3.6 Term loan 0.0 (12.7) CID facility 0.0 (3.9) Total net debt 22.2 16.0 New bank facility agreed in Q1 2014 Provides increased flexibility and lower rates H1 acquisitions have been funded through the new facility Headroom of
Slide 15: Operational Review
OPERATIONAL REVIEW
Slide 16: Document Management Division
Document Management Division 15 Records Management robust Revenue and Adjusted Operating Profit Organic growth from existing: >6% £m 16 Healthy new business wins but 14 delay in receiving boxes in 12 Storage space at 94% 10 Acquisition of three records 8 management businesses 6 Restore S
Slide 17: Relocations Division
Relocations Division 16 Harrow Green revenues and profits Revenue and Adjusted Operating Profit up strongly £m 16 Improved market conditions 14 Tight overhead control 12 Aiming for 10% net margin 10 Relocom increasingly integrated into 8 Harrow Green 6 4 Restore IT Efficient stable and g
Slide 18: Group Strategy
Group Strategy 17 Decentralised operations with central customer database “Deepening” and “Broadening” Services with similar channel to market Recurring revenues Customers unlikely to switch suppliers Typically involves significant off-site activity, unlike mainstream facilities manageme
Slide 19: Outlook
Outlook 18 Records Management robust with new sales improving Harrow Green driving towards 10% net margins Smaller businesses well placed for growth Centralised customer database is effective Continuing opportunities for growth by acquisition
Slide 20: Contact Details
CONTACT DETAILS CHARLES SKINNER CSKINNER@RESTOREPLC.COM ADAM COUNCELL ACOUNCELL@RESTOREPLC.COM TEL: 0207 409 2420 WWW.RESTOREPLC.COM