Slide 1: Final Results for the Year ended 31 December 2013
Final Results 2013 Final Results for the Year ended 31 December 2013 Acquisition of Bourne Placing of Equity Chris Sander, CEO Yvonne Monaghan, CFO
Slide 2: Highlights
Final Results 2013 Highlights Textile Rental Adjusted Operating Profit1 up 6.8% to £18.9 million Drycleaning Adjusted Operating Profit1 up 23.1% to £1.6 million Adjusted Operating Profit1 up 11.1% to £17.0 million 1 Adjusted PBT up 25.2% to £13.4 million Adjusted fully diluted EPS1 up 11.8
Slide 3: Financial Results: Income Statement
Final Results 2013 Financial Results Income Statement Continuing, £m 2013 2012 Change (restated) Revenue 193.6 198.7 (2.6)% Adjusted operating profit1 17.0 15.3 11.1% Adjusted operating margin1 8.8% 7.7% Exceptional items and amortisation (1.2) (26.0) Adjusted PBT1 13.4 10.7 25.2% Adjusted fully dil
Slide 4: Cash Flow
Final Results 2013 Cash Flow £m 2013 2012 Adjusted operating profit 17.0 15.3 Depreciation and software amortisation (excl. exceptionals) 24.1 23.4 Working capital (excl. exceptionals) 1.7 (2.9) Capital expenditure – Fixed assets (4.6) (4.5) – Rental stocks (net) (16.9) (18.7) – Fixed asset proceeds
Slide 5: Divisional Performance: Textile Rental
Final Results 2013 Divisional Performance Textile Rental Revenue (£m) 2013 2012 Change Total 136.2 134.4 1.3% 1 Adjusted operating profit (£m) JAM/SLS 17.8 16.6 7.2% Allocated income 1.1 1.1 - Total 18.9 17.7 6.8% Margin 13.9% 13.2% Textile Rental includes the two brands of Johnsons Apparelmaster
Slide 6: Divisional Performance: Textile Rental
Final Results 2013 Divisional Performance Textile Rental Increased revenue despite decision to withdraw from major customer Strong new business sales and additional volume added to existing customers Improved margin to 13.9% Some capital investment deferred to 2014 as plans are drawn to incr
Slide 7: Divisional Performance: Drycleaning
Final Results 2013 Divisional Performance Drycleaning £m 2013 2012 Change Revenue 57.4 64.3 (10.7%) 1 Adjusted operating profit 1.6 1.3 23.1% Margin 2.8% 2.0% Total like for like sales increase was 2.5% The second year of positive like for like sales Number of shops reduced to 334 (Dec 2012: 3
Slide 8: Exceptional Items
Final Results 2013 Exceptional Items Continuing, £m 2013 2012 Restructuring costs – Drycleaning (1.2) (22.7) Restructuring costs – Acquisitions - (2.1) Acquisition related costs - (0.4) Pension credit/(costs) 0.6 (0.3) Total (0.6) (25.5) 7
Slide 9: Bank Facilities
Final Results 2013 Bank Facilities Facility at March 2014 is £70.0m (December 2013: £50.0m) New Facility signed on 21 February 2014 comprising £60.0m RCF to May 2018 and £10.0m 364 day facility Initial RCF margin of 2.0% from date of drawing, future adjustment depending on gearing initially test
Slide 10: Pensions and Tax
Final Results 2013 Pensions and Tax Pensions Net IAS 19 Pension liability of £2.4m (Dec 2012: £12.9m) – additional pension contributions of £1.9m from continuing Group in 2013 and £2.1m expected in 2014 – contributions will be reviewed following results of triennial valuation – significantly highe
Slide 11: Acquisition of Bourne
Final Results 2013 Acquisition of Bourne Business overview Bourne Textile Services is a specialist hotel linen business Supplies approximately 350 hotels, servicing 28,000 bedrooms Top 10 customers represent over 55% of revenue Freehold factory site covers 4 acres with a total of 90,000 sq f
Slide 12: Acquisition of Bourne
Final Results 2013 Acquisition of Bourne Business overview Main customer types are: – 46% budget hotels; 30% three star hotels; 13% four star hotels New factory extension currently dedicated to Premier Inn Bourne currently services customers in Midlands, South Yorkshire, East Anglia, North Lon
Slide 13: Acquisition of Bourne
Final Results 2013 Acquisition of Bourne Business opportunities Bourne has a: – History of year on year growth – Strong history of capital investment – Reputation for operational excellence – Low operational cost base The Directors believe that the acquisition: – Establishes Johnsons in the volu
Slide 14: Acquisition of Bourne
Final Results 2013 Acquisition of Bourne Acquisition details Bourne financial information Share purchase of Bourne Holding Company and trading subsidiary Year to Feb 13 Feb 12 £m £m Consideration in cash on completion of £22m on a debt free, cash Revenue 15.4 14.1 free basis and subject to norma
Slide 15: Placing
Final Results 2013 Placing Placing of 26.3 million shares at a price of 51p raising £12.8m net Representing approximately 10% of the issued share capital Proceeds to part fund the acquisition of Bourne to maintain balance sheet strength and flexibility Placing shares will rank pari passu wit
Slide 16: The Group Moving Forward
Final Results 2013 The Group Moving Forward Continued investment in Textile Rental Organic growth from existing services Increase geographical spread of Stalbridge Identify additional complementary market sectors within Textile Rental Build on market awareness of GreenEarth® advantages in
Slide 17: Conclusion
Final Results 2013 Conclusion Strong trading performance Bank facilities in place to May 2018 Two strong businesses with market leading positions Significant step made in expanding range of services in Textile Rental Targeted investment in the businesses to continue 16
Slide 18: Segmental Results Appendix I
Final Results 2013 Segmental Results Appendix I
Slide 19: Segmental Results
Final Results 2013 Segmental Results £m 2013 2012 Restated 1 Revenue Operating Profit Revenue Operating Profit1 Textile Rental - JAM/SLS 136.2 17.8 134.4 16.6 - Allocated income / (costs) - 1.1 - 1.1 136.2 18.9 134.4 17.7 Drycleaning - Retail drycleaning 57.4 1.6 64.3 1.3 - Head Office Overheads -3.