H1 2019 | H1 2018 | % increase | FY 2018 | |
Adjusted results1 | ||||
Revenue | £167.1m | £152.2m | 9.8% | £321.1m |
Adjusted operating profit2 | £22.6m | £19.9m | 13.6% | £46.0m |
Adjusted profit before taxation2 | £20.1m | £18.2m | 10.4% | £42.5m |
Adjusted diluted earnings per share | 4.4p | 4.0p | 10.0% | 9.3p |
Dividend | 1.15p | 1.00p | 15.0% | 3.10p |
Net debt (pre-IFRS 16) | £92.6m | £91.2m | n/a | £98.4m |
Net debt2 | £130.5m | £91.2m | n/a | £98.4m |
Statutory results | ||||
Operating profit2 | £17.7m | £15.7m | 12.7% | £36.6m |
Profit before taxation2 | £15.2m | £14.0m | 8.6% | £33.1m |
Diluted earnings per share | 3.3p | 3.1p | 6.5% | 7.2p |
§ Strong financial performance
– organic growth of 7.5%3 together with the benefits of recent acquisitions
– adjusted operating margin2 increased to 13.5% (June 2018: 13.1%)
§ Interim dividend increased by 15.0% to 1.15 pence per share (June 2018: 1.00 pence) reflecting the Board’s confidence for the future
§ Significant capital investment in the period has increased production capacity at selected sites to support the demand from strong organic growth
§ Leeds plant on time and on budget with opening scheduled for Q2 2020
§ Performance in the two months since the period end means that full year results are expected to be slightly ahead of current market expectations
Notes
1 Excluding amortisation of intangible assets (excluding software amortisation) and exceptional items.
2 Figures for H1 2019 include the impact of adopting IFRS 16 (Leases), which increased operating profit and adjusted operating profit by £0.6 million, reduced profit before taxation and adjusted profit before taxation by £0.2 million and increased net debt by £37.9 million. The Group has applied the modified retrospective approach in adopting IFRS 16 and, therefore, the comparative numbers for 2018 have not been restated. Excluding the impact of IFRS 16, adjusted operating profit increased by 10.6% and adjusted profit before taxation increased by 11.5%.
3 Excluding the benefit of the acquisition completed in 2018 and revenue from contracts acquired in January 2019.
Peter Egan, Chief Executive Officer of Johnson Service Group, commented:
“This is a strong performance reflecting excellent sales growth, the benefits of recent acquisitions and continued high levels of customer retention across all market sectors. We are particularly pleased with the strength and quality of our organic performance which has been achieved by investing capital in our operations giving increased production capacity to meet growing customer demand.
We will continue to invest in our sites, including the completion of the new Leeds plant, allowing us to benefit from production efficiency gains as well as creating additional capacity in order to further increase revenues going forward.
There is good momentum in the Group and we have started the second half strongly. In view of the encouraging performance over the summer months we anticipate that the results for the year will be slightly ahead of current expectations.”
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