Slide 1: Final Results for the Year ended 31 December 2012
Final Results 2012 Final Results for the Year ended 31 December 2012 John Talbot, Executive Chairman Yvonne Monaghan, Finance Director
Slide 2: Highlights
Final Results 2012 Highlights Textile Rental Adjusted Operating Profit1 up 11.3% Drycleaning like for like sales up 1.5% in second half FM delivered strong growth Acquired Cannon and Nickleby businesses contributed to Group’s improved performance 2 Adjusted PBT up 10.1% to £16.3 million
Slide 3: Financial Results: Income Statement
Final Results 2012 Financial Results Income Statement Continuing, £m 2012 2011 Change (restated) 1 Revenue 244.2 228.6 6.8% Adjusted operating profit2 19.8 18.3 8.2% Adjusted operating margin2 8.1% 8.0% Exceptional items (27.7) 1.6 Adjusted PBT3 16.3 14.8 10.1% Adjusted fully diluted EPS3 5.0p 4.2p
Slide 4: Cash Flow at 31 December 2012
Final Results 2012 Cash Flow at 31 December 2012 £m 2012 2011 Adjusted operating profit 19.8 18.3 Depreciation and software amortisation (excl. exceptionals) 24.0 20.8 Working capital (excl. exceptionals) (2.5) (1.2) Capital expenditure – Fixed assets (5.3) (5.5) – Rental stocks (net) (18.7) (16.5)
Slide 5: Divisional Performance: Textile Services
Final Results 2012 Divisional Performance Textile Services 1 Revenue (£m) 2012 2011 Change Textile Rental 134.4 118.2 13.7% Drycleaning 64.3 68.9 (6.7%) Total 198.7 187.1 6.2% Adjusted operating profit2 (£m) Textile Rental 17.7 15.9 11.3% Drycleaning 1.3 1.8 (27.8%) Total 19.0 17.7 7.3% Margin 9.6%
Slide 6: Divisional Performance: Textile Rental
Final Results 2012 Divisional Performance Textile Rental 1 Revenue (£m) 2012 2011 Change Existing Business 124.5 118.2 5.3% Cannon 9.9 - Total 134.4 118.2 13.7% Adjusted operating profit2 (£m) Existing Business 15.6 14.8 5.4% Cannon 1.0 - - Allocated income 1.1 1.1 - Total 17.7 15.9 11.3% Margin 13.
Slide 7: Divisional Performance: Textile Rental
Final Results 2012 Divisional Performance Textile Rental Johnsons Apparelmaster Increased revenue reflecting higher spend by existing customers and new wins Additional capital spend to accommodate Cannon acquisition into existing plants Higher rental stock spend as a result of increased new bu
Slide 8: Divisional Performance: Drycleaning
Final Results 2012 Divisional Performance Drycleaning Retail £m 2012 2011 Change 1 Revenue 64.3 68.9 (6.7%) 2 Adjusted operating profit 1.3 1.8 (27.8%) Margin 2.0% 2.6% Total like for like sales increase was almost 1.0% Like for like sales growth of 1.5% in second half for branches open at Decem
Slide 9: Divisional Performance: Facilities Management
Final Results 2012 Divisional Performance Facilities Management SGP (£m) 2012 2011 Change 1 Revenue 45.5 41.5 9.6% 2 Adjusted operating profit 4.5 4.1 9.8% Margin 9.9% 9.9% Increase in revenue and profit with improved second half performance Integration of Nickleby now complete and further enhan
Slide 10: Group Costs
Final Results 2012 Group Costs £m 2012 2011 Administration costs 2.7 2.6 Management incentive costs 0.9 0.7 Carbon Reduction Commitment (CRC) 0.1 0.2 Total 3.7 3.5 Underlying cost base held at 2011 levels 9
Slide 11: Exceptional Items
Final Results 2012 Exceptional Items Continuing, £m 2012 2011 Restructuring costs – Drycleaning (22.7) - Restructuring costs - Acquisitions (4.0) - Acquisition related costs (fees) (0.7) - Pension (costs) / credit (0.3) 1.6 Total (27.7) 1.6 Drycleaning restructuring announced in July 2012 is still
Slide 12: Bank Facilities
Final Results 2012 Bank Facilities Facility at March 2013 is £77.0m (December 2012: £77.0m) and expires in May 2015 Term loan: £52.0m at LIBOR + margin, reducing by £1.5m in June 2013, £3.0m in December 2013 and by £3.0m per half year thereafter Revolver: £25.0m at LIBOR + margin, reducing by £2
Slide 13: Pensions and Tax
Final Results 2012 Pensions and Tax Pensions Net IAS 19 Pension liability of £12.9m (Dec 2011: £14.1m): – additional pension contributions of £1.9m from continuing Group in 2012 and expected in 2013 – higher than assumed return on assets achieved – lower discount rate assumption increasing liabili
Slide 14: The Group Moving Forward
Final Results 2012 The Group Moving Forward Textile Rental – Continue focus on driving revenue – Drive further synergies from Cannon acquisition – Increase geographical spread of Stalbridge Drycleaning – Conversion of all stores to GreenEarth® processing – Promotion of additional services – Enha
Slide 15: Conclusion
Final Results 2012 Conclusion Strong trading performance Bank facilities in place to May 2015 Two strong Divisions with leading market positions Benefits from full year of 2012 acquisitions to be realised Targeted investment in the businesses to continue Confident that the Group will con
Slide 16: Segmental Results Appendix I
Final Results 2012 Segmental Results Appendix I
Slide 17: Segmental Results
Final Results 2012 Segmental Results £m 2012 2011 Restated 1 2 Revenue Operating Profit Revenue 1 Operating Profit2 Textile Rental - Existing business 124.5 15.6 118.2 14.8 - Cannon 9.9 1.0 - - - Allocated income / (costs) - 1.1 - 1.1 134.4 17.7 118.2 15.9 Drycleaning - Retail drycleaning 64.3 1.3 6