Slide 1: 2015 Half Year Results
2015 Half Year Results Presented by Charles Skinner, Chief Executive Adam Councell, Group Finance Director 15 September 2015
Slide 2: Highlights
Highlights Group revenue up 43% to £43.9m (H1 2014: £30.6m) Document Management revenue up 73% Relocations revenue up 11% Group adjusted profit before tax up 43% to £7.7m (H1 2014: £5.4m) Document Management adjusted operating profit up 40% Relocations adjusted operating profit up 20% Adjust
Slide 3: Financial Review
Financial Review
Slide 4: Consolidated Income Statement (adjusted)
Consolidated Income Statement (adjusted) H1 2015 H1 2014 Change Revenue (£m) 43.9 30.6 43% Adjusted operating profit (£m) * 7.7 5.4 43% Finance costs (£m) (0.6) (0.4) 50% Adjusted PBT (£m) * 7.1 5.0 42% Standard tax charge 20.5% 21.5% Adjusted profit for period (£m) * 5.6 3.9 44% Average number of s
Slide 5: Document Management
Document Management H1 2015 H1 2014 Change Revenue (£m) 27.7 16.0 73% Operating profit (£m) 7.4 5.3 40% Operating margin 27% 33% -600bps Revenue (£m) Revenue increase largely a result of 2014 acquisitions Operating margin movement driven by: Consistent margins in records management of c35% Opera
Slide 6: Relocations
Relocations H1 2015 H1 2014 Change Revenue (£m) 16.2 14.6 11% Operating profit (£m) 1.2 1.0 20% Operating margin 7% 7% 0bps Revenue (£m) Results reflect the consolidation of Relocom for the full period Harrow Green performed well compared to a strong prior year IT Efficient and Relocom showed increa
Slide 7: Exceptional Costs
Exceptional Costs £m H1 2015 FY 2014 Total Box relocation and associated costs 0.2 0.4 0.6 Restructuring costs 1.7 2.5 4.2 Transaction costs 0.3 0.4 0.7 Other exceptional costs 0.7 (0.2) 0.5 Total exceptional costs 2.9 3.1 6.0 £m 2014/15 2015 exceptional costs largely driven by the Cintas acquisitio
Slide 8: Cash Flow
Cash Flow H1 2015 £m H1 2014 £m Adjusted EBITDA 9.0 6.2 Exceptional costs (2.9) (0.5) Adjusted EBITDA after exceptionals 6.1 5.7 Core working capital (1.5) (3.2) Net cash from operations 4.6 2.5 Capex (2.5) (1.4) Interest/Tax (0.8) (0.8) Acquisitions/Disposals (0.7) (6.4) Proceeds from share issues
Slide 9: Balance Sheet and Debt Facilities
Balance Sheet and Debt Facilities H1 2015 H1 2014 £m £m Non-current assets 106.7 71.8 Trade and other current assets 30.4 22.6 Cash and cash equivalents 12.3 4.2 Current Assets 42.7 26.8 Trade and other current liabilities (23.0) (16.4) Financial liabilities – borrowings (2.9) (0.4) Current liabilit
Slide 10: Financial Summary
Financial Summary Revenue up 43% driven by 2014 acquisitions Operating margins maintained in records management and Harrow Green Head office costs unchanged at £0.9m Group operating margins remain robust despite operational issues in scanning Net debt reduced slightly since YE 2014 Leverage reduced
Slide 11: Operational Review
Operational Review
Slide 12: Our Businesses
Our Businesses provides storage and retrieval of is the market leader in UK commercial hard copy documents, typically relocations. It serves a diverse range stored in cardboard boxes. It of customers including large manages millions of archive boxes corporates, local businesses and a of document fil
Slide 13: Operational Review – Records Management
Operational Review – Records Management Performance in line with budget Operating margins maintained Strong net box growth in core business Limited net box growth in ex-Cintas business Ex-Cintas business integrated apart from completion of transfer of IT systems Closure of three sites, now operating
Slide 14: Operational Review - Shred
Operational Review - Shred Performance in line with budget Cannon Confidential integration complete Appropriate operational structure for national coverage New IT system installed Focus on increasing revenues 2015 Half Year Results 13
Slide 15: Operational Review - Scan
Operational Review - Scan Performance below budget Significant issue with major contract leading to cost over-runs and knock-on effects to rest of business Postponement of other major contracted work Cost base now sharply reduced Significant contract with NDA Archives signed New management team and
Slide 16: Operational Review - Relocations
Operational Review - Relocations Performance in line with budget Operating margins increasing to above long-term target Successful operation of new MoD contract Relocom benefitting from closer integration Restore IT Efficient performance steadily improving ITP Group is logical broadening of service
Slide 17: Cintas Integration Overview
Cintas Integration Overview Head Office rationalisation complete Records Management capacity merger complete, bar Charlton (2017) Records Management operational merger complete Records Management IT integration near completion Cintas Scan fully integrated and new management structure now effected Co
Slide 18: 2015 Acquisitions
2015 Acquisitions January Ancora for £0.5m July ITP Group for £3.2m plus c. £0.8m deferred August Crimson for £1.0m plus up to £0.7m deferred Data Imaging and Archiving for £1.45m 2015 Half Year Results 17
Slide 19: Business Stream Overview
Business Stream Overview Records Management • UK no. 2 in increasingly consolidated market • consistent high operating margins • strong earnings visibility • favourable trend in net box growth Shred • established national operator with scope for organic growth Scan • major UK operator with significa
Slide 20: Summary and Outlook
Summary and Outlook Strong year-on-year performance Effective integration of earnings-enhancing acquisitions Key records management business strategically well-positioned Scan restructured following disappointing performance Relocations division trading well Continuing opportunities for further prof