Slide 1: Final Results: 12 months ended 31 December 2016
(AjJQHNSON FINAL RESULTS 12 months ended 31 December 2016 Chris Sander Chief Executive Officer Yvonne Monaghan Chief Financial Officer
Slide 2: Strong financial performance highlights
2 • Strong financial performance1 – reflecting organic growth and recent acquisitions - Revenue up 36.4% to 256.7m Revenue - Adjusted operating profit up 45.6% to £37.7m2 up - Adjusted profit before taxation up 45.1% to £33.8m2 - Adjusted fully diluted earnings per share up by 31.0% to 7.6p2 36.4% •
Slide 3: Revenue, profit, dividend and EPS trends 2012-2016
3 Continuing operations Revenue £m Adj. Operating Profit £m 300 40 250 30 200 150 20 100 10 50 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Dividend - pence per share Adj. Fully diluted EPS– pence per share (proforma) 3.0 8 2.5 6 2.0 1.5 4 1.0 2 0.5 0.0 0 2012 2013 2014 2015 2016 2012 2013
Slide 4: Continuing operations financial summary
4 Continuing operations (£m) 2016 2015 Increase Restated Revenue 256.7 188.2 36.4% Adjusted operating profit1 37.7 25.9 45.6% Adjusted operating margin1 14.7% 13.8% Exceptional items (1.0) (2.5) Adjusted PBT1 33.8 23.3 45.1% Adjusted EPS1 7.6p 5.8p 31.0% Number of shares used in EPS calc2 356.9 323.
Slide 5: Cash flow and net debt movement
5 Continuing Operations (£m) 2016 2015 Restated Continuing adjusted operating profit 37.7 25.9 Depreciation and software amortisation (excl. exceptionals) 43.3 30.9 Working capital (excl. exceptionals) 3.0 0.9 Capital expenditure – fixed assets (14.6) (3.6) – rental stocks (net) (31.8) (25.3) – fixe
Slide 6: Strategy focus on growth in Textile Rental
6 • Focus on growth markets in Textile Rental - Increase presence in HORECA market • Exploit market opportunities for organic growth • Identify and acquire quality businesses to increase geographic coverage • Restructure and divest Drycleaning activities • Continued investment in processing equipmen
Slide 7: Textile Rental - Five Leading Brands
7 Workwear HORECA (hotels, restaurants & catering) • 17 laundries • 12 laundries • 5 depots • 2 depots • 2,150 employees • 2,850 employees • 378 commercial • 350 commercial vehicles vehicles • 8m items processed a week (average) • 37,500 customers Premium linen Restaurant & High volume High volume W
Slide 8: Textile Rental segment results
8 £m 2016 2015 Increase Revenue 256.7 188.2 36.4% Adjusted operating profit1 41.7 29.4 41.8% Margin 16.2% 15.6% • Revenue growth of 36.4%, including £42.7m from 2016 acquisitions • Apparelmaster - continued investment to enhance capacity, particularly in food processing • Stalbridge - strong perform
Slide 9: Exceptional items
9 Continuing, £m 2016 2015 Restated Restructuring costs Restructuring costs - 1.0 - Final costs arising in 2015 from successful Acquisition related costs 1.2 1.5 relocation to the new workwear processing facility in Leeds Pension costs 0.3 - Gain on disposal of vacated Acquisition related costs Text
Slide 10: Bank facility, hedging and interest
10 Bank Facility Hedging - New £120.0m RCF expiring April 2020 - Hedging arrangements in place from Jan 2016 which hedge £15.0m at 1.47% to Jan - RCF at LIBOR + applicable margin 2019 and £15.0m at 1.67% to Jan 2020 - RCF average margin during 2016 was 1.67% and will be similar for - New hedging arr
Slide 11: Pensions and tax
11 Pensions Tax - Net deficit of £13.8m (Dec 2015: £11.9m) - Effective tax rate¹ on adjusted profit before tax of 19.8% (2015: 19.7%) - Increase largely due to a reduction in the discount rate applied to liabilities - Deficit recovery payments of £1.9m were paid (2015: £1.9m). Normal payments at the
Slide 12: Disposal of Drycleaning operations
12 • Transaction completed on 4 January 2017 for consideration of £8.25m on a debt free, cash free basis • Drycleaning activities reported as Discontinued Operations and net assets classified as “held for sale” as at 31 December 2016 • Impairment of Goodwill of £2.0m recognised within Discontinued O
Slide 13: Exploit operational opportunities, invest for our future
13 Exploit operational opportunities Invest for our future • Continue to integrate • Continue to invest in our processing acquisitions effectively within the facilities to enhance our customer business service • Exploit Continue to realise operational • Target investment across the Group benefits fr
Slide 14: Thank you
(F)JOHNSON THANK YOU
Slide 15: Revenue and operating profit by segment
15 2016 2015 Operating Operating Revenue Profit1 Revenue Profit1 £m £m £m £m Textile Rental - Trading 256.7 40.4 188.2 28.2 - Allocated Income - 1.3 - 1.2 256.7 41.7 188.2 29.4 Unallocated Costs - Group Costs - (4.0) - (3.5) TOTAL 256.7 37.7 188.2 25.9 Note 1: Before amortisation and impairment of i