Slide 1: Interim Results for the 6 months ended 30 June 2011
Interim Results 2011 Interim Results for the 6 months ended 30 June 2011 John Talbot, Executive Chairman Yvonne Monaghan, Finance Director
Slide 2: Highlights
Interim Results 2011 Highlights Strong performance across all 3 divisions despite challenging market conditions Adjusted PBT1 up 4.8% to £6.5 million (H1 2010: £6.2 million) Adjusted fully diluted EPS1 maintained at 1.8 pence Debt reduced by £8.5 million during the period through: – cash gen
Slide 3: Financial Results: Income Statement
Interim Results 2011 Financial Results Income Statement Continuing operations 2011 2010 Change 1 Revenue £113.6m £109.8m 3.5% Adjusted operating profit2 £8.4m £8.0m 5.0% Adjusted operating margin2 7.4% 7.3% Exceptional items - £(7.0)m Adjusted PBT2 £6.5m £6.2m 4.8% Adjusted EPS2 1.8p 1.8p Fully dilu
Slide 4: Cash flow at 30 June 2011
Interim Results 2011 Cash flow at 30 June 2011 £m 2011 2010 Adjusted operating profit 8.4 8.0 Depreciation and software amortisation (excl. exceptionals) 9.9 9.9 Working capital (excl. exceptionals) (1.2) (0.5) Capital expenditure – Fixed assets (2.0) (4.2) – Rental stocks (net) (6.5) (6.4) – Fixed
Slide 5: Divisional Performance: Textile Rental
Interim Results 2011 Divisional Performance Textile Rental 1 Revenue (£m) 2011 2010 Change Johnsons Apparelmaster 45.3 43.8 3.4% Stalbridge Linen Services 12.7 12.5 1.6% Total 58.0 56.3 3.0% 2 Adjusted operating profit (£m) Johnsons Apparelmaster 6.5 6.4 1.6% Stalbridge Linen Services 0.7 0.7 -% All
Slide 6: Divisional Performance: Textile Rental
Interim Results 2011 Divisional Performance Textile Rental Johnsons Apparelmaster Stable level of spend by existing customers 6% reduction in energy consumption helped to offset increased unit price Improved new sales, particularly in the food processing sector Stalbridge Linen Services Corp
Slide 7: Divisional Performance: Drycleaning
Interim Results 2011 Divisional Performance Drycleaning Retail £m 2011 2010 Change 1 Revenue 33.7 34.6 (2.6%) 2 Adjusted operating profit 0.5 0.4 25.0% Margin 1.5% 1.2% Total like for like sales decrease of 0.7% (2010 H1: decrease of 4.7%; 2010 FY: decrease of 2.6%) Benefit from £0.2m of propert
Slide 8: Divisional Performance: Facilities Management
Interim Results 2011 Divisional Performance Facilities Management £m 2011 2010 Change Revenue1 17.7 14.7 20.4% 2 Adjusted operating profit 2.0 1.6 25.0% Margin 11.3% 10.9% Significant increase in revenue and profit FM Revenue by Sector Successful integration of acquired PFI business 22% 31% Re
Slide 9: Group Costs
Interim Results 2011 Group Costs £m 2011 2010 Administration costs 1.4 1.4 Management incentive costs 0.4 0.3 Carbon Reduction Commitment (CRC) 0.1 - Total 1.9 1.7 Underlying cost base held at 2010 levels Full year CRC cost anticipated to be c£0.2m 8
Slide 10: Bank Facilities
Interim Results 2011 Bank Facilities Facility is currently £73.45m (December 2010: £76.0m) and expires April 2013 Term loan: £53.45m at LIBOR + margin, reducing by £1.5m in December 2011 and by £1.5m per half year thereafter RCF: £20.0m at LIBOR + margin £3.0m of repayments due in 2011 (Februa
Slide 11: Pensions and Tax
Interim Results 2011 Pensions and Tax Pensions Net IAS 19 Pension liability of £3.2m (Dec 2010: £11.2m) – further 1.1% growth in asset values (7.1% growth in FY2010) – higher discount rate assumption reducing liabilities – additional pension contributions, or equivalent, of £1.7m from continuing G
Slide 12: The Group Moving Forward
Interim Results 2011 The Group Moving Forward Textile Rental – Focused on driving revenue – Opportunities as smaller laundries come under pressure – Development of Direct Sales market Drycleaning – Focus on continued growth of additional services – Further expansion of Empowerment programme – Ta
Slide 13: Conclusion
Interim Results 2011 Conclusion Strong performance despite economic conditions Three profitable businesses with strong market positions Benefits from reduced level of debt and gearing Targeted investment in the businesses to continue Dividend payment increased 12
Slide 14: Appendix - Segmental Results
Interim Results 2011 Appendix 1 - Segmental Results 2011 2010 Change Operating Operating Operating Revenue1 Profit2 Revenue1 Profit2 Revenue1 Profit2 £m £m £m £m % % Textile Rental - Johnsons Apparelmaster 45.3 6.5 43.8 6.4 3.4% 1.6% - Stalbridge Linen Services 12.7 0.7 12.5 0.7 1.6% - - Allocated I