Johnson Service Group Plc · LSE:JSG
Johnson Service — FY2008 Earnings Presentation
18 slides from Johnson Service's earnings presentation, Mar 10, 2009
Slide 1: Final Results Year Ended 31 December 2008
Final Results Year Ended 31 December 2008 John Talbot – Executive Chairman Yvonne Monaghan – Finance Director Tuesday, 10th March 2009
Slide 2: Overview
2008 Final Results Overview • The Group has been restructured • Debt reduced by £90 million during the year • Three resilient and cash generative businesses with strong market positions and growth potential • Appropriate actions taken within each business to deal with current environment 2
Slide 3: Financial Results
2008 Final Results Financial Results Continuing 2008 2007 Change Revenue* £253.6m £275.7m (8.0)% Adjusted Operating Profit ** £17.4m £18.1m (3.9)% Adjusted Operating Margin** 6.9% 6.6% Exceptional Items (£8.7m) (£39.9m) Adjusted PBT*** £6.5m £6.5m - Adjusted EPS*** 3.0p 3.9p (23.1)% Fully diluted nu
Slide 4: Cash Flow at 31 December 2008
2008 Final Results Cash Flow at 31 December 2008 £m 2008 2007 Adjusted Operating Profit 17.4 18.1 Depreciation and software amortisation 21.9 30.1 Working Capital (excl. exceptionals) (7.5) (15.5) Capital Expenditure – Fixed assets (8.2) (18.8) – Rental stocks (net) (10.6) (15.8) – Fixed asset proce
Slide 5: Individual Company Performance: Johnsons Apparelmaster
2008 Final Results Individual Company Performance Johnsons Apparelmaster £m 2008 2007 Change Revenue* 94.4 92.6 1.9% Adjusted Operating Profit ** 13.8 12.6 9.5% Margin 14.6% 13.6% n/a • Very successful year with core garment rental and laundry revenue up 2.4% • Margin improved due to significant sav
Slide 6: Individual Company Performance: Stalbridge Linen Services
2008 Final Results Individual Company Performance Stalbridge Linen Services £m 2008 2007 Change Revenue* 28.2 36.4 (22.5)% Adjusted Operating Loss ** (0.5) (2.0) 75.0% Margin (1.8)% (5.5)% n/a • Profitable in second half, margin of 2.1% • Planned reduction of low price work largely completed and sal
Slide 7: Individual Company Performance: Facilities Management
2008 Final Results Individual Company Performance Facilities Management SGP £m 2008 2007 Change Revenue* 28.5 40.5 (29.6)% Adjusted Operating Profit ** 3.1 5.6 (44.6)% Margin 10.9% 13.8% n/a • Fujitsu contract taken in house at the end of 2007- revenue and net contribution in 2007 was £12.8m and £2.
Slide 8: Individual Company Performance: Drycleaning
2008 Final Results Individual Company Performance Drycleaning Retail £m 2008 2007 Change Revenue* 79.3 82.8 (4.2)% Adjusted Operating Profit ** 4.2 6.6 (36.4)% Margin 5.3% 8.0% n/a • Like for like sales decrease of 3.2% (H1: -2.5%, H2: -3.9%) • Reduced margin due to increase in energy costs and lowe
Slide 9: Unallocated Group Costs
2008 Final Results Unallocated Group Costs £m 2008 2007 Computer Costs 0.8 1.1 Administration Costs 3.7 4.7 Management incentive costs 0.4 - Sundry Income - (0.4) 4.9 5.4 • Computer costs include SAP costs retained at the centre re SLS. Costs will cease in 2009 • Reduction in underlying administrati
Slide 10: Exceptional Items
2008 Final Results Exceptional Items £m 2008 2007 Continuing Restructuring costs (3.4) (15.6) Bank restructuring costs (6.4) (2.4) Move to AIM (0.3) - Onerous lease and environmental costs (0.7) (3.7) Write-off of rental stock (3.6) Write-off of ERP asset - (16.7) Uninsured losses 1.2 (-) Total cost
Slide 11: Financial Information
2008 Final Results Financial Information • Net debt level at December £78.5m (Dec 2007: £168.5m) – committed bank facility of £107.5m – £8.5m of repayments due in 2009 • Increased net IAS 19 Pension liability to £13.7m (Dec 2007: £9.9m) due to: – additional pension contributions of £2.6m from contin
Slide 12: Bank Facilities
2008 Final Results Bank Facilities • Remaining Facility £107.5m A - £62.5m term loan at LIBOR + 2.5% reducing by £1.5m in September 2009 and by £2m per quarter from December 2009 B - £25m revolver at LIBOR + 2.5% reducing by £2.5m in June 2009 and December 2009 C - £20m term loan at LIBOR + 4.0% cas
Slide 13: The Group moving forward: Textile Rental
2008 Final Results The Group moving forward Textile Rental • Market leading positions • Strong and experienced management team • Benefits from Johnsons Apparelmaster and Stalbridge integration • Strong and diversified customer base + good contract wins • Market conditions are difficult • Potential f
Slide 14: The Group moving forward: Drycleaning
2008 Final Results The Group moving forward Drycleaning • Market leading position • Strong and committed management team • Cost reduction plan implemented in early response to current economic conditions • Targeted opening of further drive-ins • GreenEarth® roll out • Continuing improvement of the q
Slide 15: The Group moving forward: Facilities Management
2008 Final Results The Group moving forward Facilities Management • Strong and focused management team • Strong market position: almost a quarter of high street retail outlets • Provides unique services • Contract wins for the Help Desk continuing • Profitable long term FM contracts with the Public
Slide 16: Conclusion
2008 Final Results Conclusion • Three businesses in dominant market positions • Management teams working through challenges presented by the current economic climate • Targeted investment in the businesses to continue • Benefits from reduced level of debt and lower interest costs • Dividend prospect
Slide 17: Q&A
2008 Final Results JOHNSON Q&A 17
Slide 18: Appendix 1 – Segmental Results
2008 Final Results Appendix 1 – Segmental Results £m 2008 2008 2007 2007 Revenue* Op Profit** Revenue* Op Profit** Textile Rental Johnsons Apparelmaster 94.4 13.8 92.6 12.6 Stalbridge 28.2 (0.5) 36.4 (2.0) Allocated Income / (Costs) - 1.0 - 1.0 122.6 14.3 129.0 11.6 Drycleaning Retail drycleaning 79