Slide 1: 2014 Results Presentation
2014 Results Presentation Charles Skinner, Chief Executive Adam Councell, Group Finance Director 11 March 2015
Slide 2: Highlights
Highlights Group revenue up 26% to £67.5m (2013: £53.6m) Document Management revenue up 35%; operating profit up 12% Relocations revenue up 16%; operating profit up 50% Group adjusted profit before tax up 20% to £12.0m (2013: £10.0m) Adjusted earnings per share up 17% to 12.3p (2013: 10.5p) Divi
Slide 3: Financial Review
Financial Review
Slide 4: Consolidated Income Statement (adjusted)
Consolidated Income Statement (adjusted) 2014 2013 Change Revenue (£m) 67.5 53.6 26% Adjusted operating profit (£m) * 12.9 10.9 18% Finance costs (£m) (0.9) (0.9) 0% Adjusted PBT (£m) * 12.0 10.0 20% Standard tax charge 21.5% 23.25% Adjusted profit for period (£m) * 9.4 7.7 22% Average number of sha
Slide 5: Cash Flow
Cash Flow 2014 £m 2013 £m Adjusted EBITDA after exceptionals 11.7 8.7 Core working capital (0.8) 1.5 Post acquisition working capital (3.4) 0.0 Growth working capital (1.9) 0.0 Net cash from operations 5.6 10.2 Capex (3.6) (3.7) Interest/Tax (1.9) (1.5) Acquisitions/Disposals (27.7) (8.7) Proceeds f
Slide 6: Balance Sheet and Debt Facilities
Balance Sheet and Debt Facilities 2014 2013 £m £m Non-current assets 103.3 64.5 Trade and other current assets 25.3 17.9 Cash and cash equivalents 6.9 3.9 Current Assets 32.2 21.8 Trade and other current liabilities (16.8) (15.6) Financial liabilities – borrowings (3.7) (6.0) Current liabilities (20
Slide 7: Document Management
Document Management 2014 2013 Change Revenue (£m) 37.4 27.7 35% Operating profit (£m) 11.5 10.3 12% Operating margin 31% 37% -600bps Document Management includes the impact of 2013 and 2014 Revenue (£m) acquisitions Underlying growth of 5% Reduction in operating margin a result of: Lower margin sh
Slide 8: Relocations
Relocations 2014 2013 Change Revenue 30.1 25.9 16% Operating profit 3.3 2.2 50% Operating margin 11% 8% +300bps Results include the consolidation of Relocom in 2014 Revenue (£m) Increased market activity at Harrow Green assisted the division to underlying growth of 7% Increase in operating margin a
Slide 9: Financial Summary
Financial Summary Revenue (£m) Adjusted profit before tax (£m) Adjusted earnings per share (p) Dividend per share (p) Revenue up 26% driven by acquisitions and 6% underlying growth Operating margins fell by 1% due to the nature of 2014 acquisitions Document Management performance remains robust, sig
Slide 10: Guidance Points for 2015
Guidance Points for 2015 Revenue to increase as a result of 2014 acquisitions and organic growth Operating margins to improve as a result of synergies from acquired businesses Records Management’s strong earnings visibility forms the bulk of the Group profits but represents less than 50% of Group re
Slide 11: Operational Review
Operational Review
Slide 12: Market positioning – Records Management
Market positioning – Records Management No. 2 in UK market with estimated 9% market share Principal consolidator of UK market that remains highly fragmented History of successful earnings-enhancing acquisitions and effective post-acquisition management Industry-leading performance in new box wins Es
Slide 13: Market positioning – Shred
Market positioning – Shred No. 3 in UK market with estimated 3% market share National network now in place to improve margins and attractiveness to national customers Strong organic growth in fast-growing market Able to leverage Group customer base Critical mass now established Preliminary Results f
Slide 14: Market positioning – Scan
Market positioning – Scan No. 2 in UK market following Cintas acquisition Good mix of long-term contracts, recurring revenue and strong sales pipeline Investment underway in systems to increase margins and differentiate from smaller scanning bureaus Increasing activity with NHS clients Strong start
Slide 15: Market positioning – Relocations
Market positioning – Relocations UK market leader in office relocation Recurring revenues from major customers > 50% Carillion Amey contract for MoD opens up new market opportunities for Harrow Green Relocom (IT relocation) and Restore IT Efficient (IT equipment recycling) benefiting from closer int
Slide 16: Market positioning – Group Customer Base
Market positioning – Group Customer Base Includes: 43% of FTSE 100 companies 80% of top 25 UK accountancy firms 64% of top 50 UK legal practices 29% of local authorities in England, Scotland and Wales 27% of UK National Health Trusts Preliminary Results for the year to 31 December 2014 15
Slide 17: 2014 Acquisitions
2014 Acquisitions April Magnum Secure for £4.6 million Majority stake in Relocom May Filebase for £1.0 million June Cannon Confidential for £1.1 million Papersafe for £0.2 million October Cintas UK for £26.0 million Overall, consideration = 1.3x sales January 2015 Ancora for £0.5 million Preliminary
Slide 18: Cintas Deal and Integration
Cintas Deal and Integration Total cost, including integration – £30m Medium term targeted operating profit of £5m – achieved through cost savings and increased capacity utilisation Strategic advantages: Greater UK records management market share Critical mass in scanning Increased customer bas
Slide 19: Cintas Integration – Key Elements
Cintas Integration – Key Elements Status Cintas Head Office rationalisation Overhead costs significantly reduced Charlton property exit On track Records Management capacity merger On track. One million racked spaces available by April 2015 Records Management operational merger Ahead of plan apart fr
Slide 20: Cannon Integration into Restore Shred
Cannon Confidential Integration into Restore Shred Clapham activity transferred to Charlton Worcester activity transferred to Upper Heyford No ongoing Cannon Head Office costs Current sites: London, Oxon, Manchester, Leeds, Middlesbrough, Edinburgh Forecast 2015 operating margin: 20 per cent Prelimi
Slide 21: Summary
Summary Current focus: post-acquisition management Records Management: continued steady growth, acquisitions integrated to achieve Restore margins Scan: significant player with robust customer base and order book Shred: critical mass achieved and operating margins increasing Relocations: strong mark
Slide 22: Outlook
Outlook Our Document Management division is benefiting from improved rates of net box growth. We remain focused on integrating last year’s acquisitions and increasing their operating margins towards those of our existing businesses. Our Relocations division continues to benefit from improved market