Slide 1: 2018 Full Year Results
Strong. Growth. 2018 Full Year Results ple
Slide 2: Highlights
Highlights £195.5m Financial highlights Operational highlights +14% REVENUE (£’M) OO Group revenue up 14% to £195.5m OO Acquisition of TNT Business Solutions OO Group adjusted profit before tax OO 3% organic growth in core Restore up 20% to £37.5m Records Management revenues despite £37.5m high box
Slide 3: Financial Review
Consolidated Income Statement (Adjusted) Financial Review 2018 Full Year Results 2
Slide 4: Consolidated Income Statement (Adjusted)
Consolidated Income Statement (Adjusted) 2018 2017 Change Revenue (£’m) Revenue (£’m) 195.5 172.0 +14% 2.8 195.5 20.7 Adjusted operating profit (£’m) 41.3 33.8 +22% 172.0 Finance costs (£’m) (3.8) (2.5) +52% Adjusted PBT (£’m) 37.5 31.3 +20% Standard tax charge 19% 19.25% Adjusted profit for period
Slide 5: Document Management
Document Management 2018 2017 YOY change Revenue (£’m) Revenue (£’m) 147.6 126.9 +16% 147.6 Operating profit (£’m) 38.5 31.0 +24% 126.9 +16% Operating margin 26.1% 24.4% +170bps OO Revenue by business stream: • Restore Records Management £86.5m (2017: £68.9m) • Restore Datashred £41.8m (2017: £39.4m
Slide 6: Relocation
Relocation 2018 2017 YOY change Revenue (£’m) 47.9 +6% Revenue (£’m) 47.9 45.1 +6% 45.1 Operating profit (£’m) 5.8 5.3 +9% Operating margin 12.1% 11.8% +30bps OO Revenue by business stream: • Restore Harrow Green £37.6m (2017: £35.5m) • Restore Technology £10.3m (2017: £9.6m) 2017 2018 OO Printer Ca
Slide 7: Exceptional Costs
Exceptional Costs 2018 2017 £’m £’m OO Majority of restructuring costs relate to TNT BS Acquisition related restructuring costs 4.6 7.2 acquisition. Much of this was delayed to the second half Transaction costs 2.4 0.5 due to the CMA enquiry which concluded in August 2018 Other exceptional costs 1.5
Slide 8: Cash Flow
Cash Flow 2018 2017 £’m £’m OO Net cash from operations increased 106% on prior year Adjusted EBITDA 48.2 39.8 Exceptional costs (excluding non-cash EIP credit) (8.5) (16.2) OO Working capital outflow includes: Adjusted EBITDA after exceptionals 39.7 23.6 • The expected post completion working capit
Slide 9: Historic Cash Conversion
Historic Cash Conversion 2013 2014 2015 2016 2017 2018 Total £’m £’m £’m £’m £’m £’m £’m Adjusted EBITDA 12.1 14.8 20.4 29.3 39.8 48.2 164.6 Reported net cash from operations 10.2 5.6 11.0 18.2 15.7 32.4 Exceptional costs 3.4 3.1 6.4 10.3 15.5 8.5 Acquisition related working capital 3.7 3.1 6.8 2.1
Slide 10: Balance Sheet and Debt Facilities
Balance Sheet and Debt Facilities 2018 2017 £’m £’m OO Two new lenders added to banking syndicate as part Non-current assets 335.5 243.9 of TNT BS acquisition bringing total to four Trade and other current assets 49.8 45.4 Cash and cash equivalents 11.7 10.7 OO Banking facilities restructured and co
Slide 11: IFRS 16
IFRS 16 OO The Group will be adopting IRFS 16 ‘Leases’ from OO Indicatively the likely changes can be summarised 1st January 2019 as follows: OO Lease payments which are currently treated as opex in • Net debt will increase by £130 - £155 million primarily the income statement will be replaced by as
Slide 12: Financial Summary
Financial Summary OO Ninth consecutive year of double digit EPS growth OO TNT BS acquisition performing in line with expectations OO Operating margins improving to 21.1% OO Significant step forward in operating cash flow OO Leverage slightly over 2x pro forma EBITDA, bank facilities restructured OO
Slide 13: Operational Review
Operational Review 2018 Full Year Results 12
Slide 14: Predictable Recurring Revenues
Predictable Recurring Revenues OO Restore Records Management is c. 70% of Group Operating Profit Attractive Operating Margins OO 21.1% up from 19.7% Strong Market Positions OO No. 1 or No. 2 in 4 of 5 core activities Market Knowledge OO Focus on UK offices Well-invested OO Market-leading operating s
Slide 15: Significant historic growth
Significant historic growth OO CAGR revenue growth of 28% since 2011 OO CAGR eps growth of 29% since 2011 OO Dividend increased from 1.0p in 2011 to 6.0p in 2018 Acquisition-driven growth underpinned by organic growth OO 4.5% organic growth over last 5 years Scope to continue consolidation of existi
Slide 16: Restore Records Management
Restore Records Management OO 3% organic revenue growth despite flat volumes in GDPR year OO Increased operating margins OO Optimal capacity utilisation OO Steady improvement in property portfolio OO TNT BS acquisition contributing strongly OO Specialist public sector team in place 2018 Full Year Re
Slide 17: Restore Records Management Continued
Restore Records Management Continued OO 70% of Group operating profit at current runrates OO 20 million stored boxes underpins Group profits OO Strong cash-flow as low maintenance capex OO Holding documents is powerful springboard for document management activities OO Still scope for growth in unven
Slide 18: Restore Datashred
Restore Datashred OO Positive organic growth with increase in gross profit OO Lower year-on-year operating profit as significant increase in overheads, reflecting cost of decentralised infrastructure OO Business model, operating systems and management information systems now settled and headcount de
Slide 19: Restore Digital
Restore Digital OO Growth attributable to acquisitions OO Increase in operating margins OO 4 acquisitions made in the year OO Successful integration of loss-making TNT scanning business OO Working increasingly closely with Restore Records Management especially on public sector OO Sales pipeline impr
Slide 20: Restore Harrow Green
Restore Harrow Green OO Another year of increase in revenues and profits OO Market-leading operating margins OO New East London storage facility incorporating storage from recent acquisition OO High-quality customer base with long-term relationships OO Pre-eminent market leader 2018 Full Year Result
Slide 21: Restore Technology
Restore Technology OO Increasingly important Group activity with high growth expected to continue OO Immature, unstructured and growing market OO Major investment in new flagship facility in Bedford OO Now includes IT relocation activities OO Recent acquisitions bring WEEE capability OO Significant
Slide 22: Restore as a Group
Restore as a Group OO One brand OO One well-established CRM system across the Group OO Comprehensive database of UK offices OO Additional new revenues from cross-selling being achieved OO More services increases stickiness OO Highly complementary activities, eg. Restore Records Management and Restor
Slide 23: 2018 Acquisitions
2018 Acquisitions Scanning Direct Function Business Relocation Ltd OO January 2018 OO October 2018 Papershrink Safe-Shred UK Ltd OO January 2018 OO October 2018 TNT Business Solutions Green Magnet OO May 2018 OO October 2018 ORS Ltd Document Capture Co OO June 2018 OO October 2018 Spinnaker Waste Ma
Slide 24: TNT Business Solutions Integration
TNT Business Solutions Integration OO Integration complete bar certain IT platforms OO Limited change at 2 major public sector sites OO Main London site integrated into Restore RM OO 1 smaller site exited, other smaller site to be exited later this year OO Loss-making scanning business predominantly
Slide 25: Summary and Outlook
Summary and Outlook OO Another strong performance in 2018 OO Restore Records Management continues to deliver growth, cash and improving operating margins OO TNT proving to be an excellent acquisition OO Restore Harrow Green established as regular, strong performer OO Restore Datashred and Restore Di
Slide 26: For more information please see www.restoreplc.com
15/19 Cavendish Place London, W1G 0QE T: 020 7409 2420 E: info@restoreplc.com W: www.restoreplc.com For more information please see www.restoreplc.com