Johnson Service Group Plc · LSE:JSG
Johnson Service — H1 2020 Earnings Presentation
25 slides from Johnson Service's earnings presentation, September 2020
Slide 1: Interim Results
Peter Egan Chief Executive Officer Yvonne Monaghan Chief Financial Officer Interim Results 6 months ended 30 June 2020
Slide 2: Impact & Management of COVID-19
2020 Interim Results Impact & Management of COVID-19 “…decisive action to ensure the long-term preservation of the business.” 2
Slide 3: Impact & Management of COVID-19
2020 Interim Results Impact & Management of COVID-19 • Mothballing of HORECA sites; phased reopening from July as volumes increased • Proactive implementation of processes to protect the health and wellbeing of our employees and customers • £16.6m benefit from the Government’s CJRS grant • Non-essen
Slide 4: Income Statement
2020 Interim Results Income Statement 2020 H1 2019 H1 Revenue (£m) 114.8 167.1 Adjusted EBITDA (£m)1,2,3 24.9 55.2 Adjusted EBITDA margin (%)1,2,3 21.7 33.0 Adjusted operating (loss) / profit (£m)2,3 (9.5) 22.6 Adjusted operating margin (%)2,3 (8.3) 13.5 Exceptional items (£m) (0.5) - Adjusted (LBT)
Slide 5: Cash Flow
2020 Interim Results Cash Flow £m 2020 H1 2019 H1 2019 FY Adjusted operating (loss) / profit (9.5) 22.6 52.8 Depreciation and software amortisation 34.4 32.6 66.2 Working capital 16.8 0.2 2.7 Capital expenditure – fixed assets and software (8.5) (9.3) (20.0) – rental stocks (net) (16.6) (21.6) (45.9
Slide 6: Other Financial Information
2020 Interim Results Other Financial Information Interest & Bank Facility Taxation Interest • Effective tax rate1 of 16.7% (2019: 18.9%) • Interest cost of £3.1m including £0.9m relating to lease liabilities • Benefits from prior year adjustments offset by the and £0.6m relating to discontinuance of
Slide 7: JSG's Continuing Commitment to ESG
2020 Interim Results JSG’s Continuing Commitment to ESG State of the art Electric vehicle Water recycling new Leeds facility delivery trials plant trials completed in London Employee Academy driving Installation Engagement development of passive Survey opportunities for LED lighting employees “We ar
Slide 8: Capital Investment £8.5m
2020 Interim Results Capital Investment £8.5m Investment in H1 Leeds Clacton Basingstoke New Washer Industrial unit processing and dryer upgrade facility upgrades completed Milborne Perth Shaftesbury Port Grantham Washing Ironing line CBW, Expansion machine upgrade dryers & of site upgrades ironers
Slide 9: Operational Performance: Workwear
2020 Interim Results Operational Performance: Workwear 9
Slide 10: Operational Performance: Workwear
2020 Interim Results Operational Performance Workwear 2020 H1 2019 H1 Revenue (£m) 64.6 67.5 1,2,3 Adjusted EBITDA (£m) 24.4 24.3 1,2,3 Adjusted EBITDA margin (%) 37.8 36.0 2,3 Adjusted operating profit (£m) 11.6 12.1 Adjusted operating margin (%)2,3 18.0 17.9 Notes: 1. Adjusted operating profit plu
Slide 11: Operational Performance: Workwear
2020 Interim Results Operational Performance Workwear • All sites continued to operate during lockdown • Volume reduction of 12% in April gradually improving to 6% reduction in August • Some 91% of customers who closed have now resumed service • Customer retention levels modestly down at 94% (2019:
Slide 12: Operational Performance: HORECA
2020 Interim Results Operational Performance: HORECA Hotel, Restaurant & Catering 12
Slide 13: Operational Performance: HORECA
2020 Interim Results Operational Performance HORECA Hotel, Restaurant & Catering Linen Hotel Linen Hotel, Restaurant & Catering 2020 H1 2019 H1 Revenue (£m) 50.2 99.6 Adjusted EBITDA (£m)1,2,3 2.7 33.2 Adjusted EBITDA margin (%)1,2,3 5.4 33.3 Adjusted operating (loss) / profit (£m)2,3 (18.8) 12.9 Ad
Slide 14: Operational Performance: HORECA
2020 Interim Results Operational Performance HORECA Hotel, Restaurant & Catering Linen Hotel Linen Hotel, Restaurant & Catering • Organic growth for the first two months particularly strong, aided by Gleneagles and Jurys Inn contract wins • Division significantly impacted thereafter by COVID-19; maj
Slide 15: Our Customers
2020 Interim Results Our Customers “Customer communication maintained in order to foster our strong, long-term relationships.” 15
Slide 16: Our Customers
2020 Interim Results Our Customers 16
Slide 17: The Future
2020 Interim Results The Future “Continued focus on growing the business through targeted investment.” 17
Slide 18: Outlook – Post COVID-19
2020 Interim Results Outlook – Post COVID-19 Workwear Market - Gradual reopening of customers who had temporarily closed operations and we expect that to continue - We remain vigilant as to the potential impact of ongoing employment levels HORECA Market - July and August have benefitted from summer
Slide 19: Unchanged Strategic Plan
2020 Interim Results Unchanged Strategic Plan Organic Investment M&A • Market leading position within Workwear & HORECA • National coverage; local service • Dedicated to providing first class customer service • Maintaining margin over the medium term • Implementation of a Group-wide brand recognitio
Slide 20: The Future – Confident of Medium-Term Growth
2020 Interim Results The Future – Confident of Medium-Term Growth “With our strong balance sheet, established market position and reputation for quality service, we remain confident in the Group’s medium-term growth prospects as the economy and markets we serve recover.” Organic Growth Investment Ac
Slide 21: See
See @e @ ee & © 3 O*: JOHNSON e Group PLC
Slide 22: Appendix: Segmental Analysis
2020 Interim Results Appendix 1 Segmental Analysis 2020 H1 2019 H1 Adjusted Adjusted Operating Operating Revenue Profit / (Loss)1 Revenue Profit1 £m £m £m £m Workwear 64.6 11.6 67.5 12.1 HORECA 50.2 (18.8) 99.6 12.9 Textile Rental 114.8 (7.2) 167.1 25.0 Group Costs - (2.3) - (2.4) TOTAL 114.8 (9.5)
Slide 23: Appendix: Financial Track Record
2020 Interim Results Appendix 2 Financial Track Record Revenue (£m) Adjusted Operating Profit (£m) 400 350.6 60 52.8 321.1 46.0 290.9 50 43.3 300 256.7 37.7 40 188.2 25.9 200 30 20 100 10 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Adjusted Diluted EPS (p) Dividend per Share (p) 12 10.5 4.
Slide 24: Consistent Performance Built on Buy-and-Build Strategy
2020 Interim Results Appendix 3 Consistent Performance Built on Buy-and-Build Strategy 180 160 140 120 (p) 100 80 60 40 2014 2015 2016 2017 2018 2019 24
Slide 25: Our Executive Team
2020 Interim Results Appendix 4 Our Executive Team Peter Egan Yvonne Monaghan Chief Executive Officer Chief Financial Officer Industry Experience: 27 Years Industry Experience: 36 Years Mark Woolfenden Donald Smith Helen Wood Tim Morris Steve McKeever MD, Hotel Linen MD, Stalbridge & London Linen MD
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