Disclaimer This presentation includes statements that are, or may be deemed to be, “forward -looking statements” . These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations. Any forward-looking statements in this presentation reflect the Company’s current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. No representations or warranties are made as to the accuracy of such statements, estimates or projections. Please note that the Directors of the Company are, in making this presentation, not seeking to encourage shareholders to either buy or sell shares in the Company. Shareholders in any doubt about what action to take are recommended to seek financial advice from an independent financial advisor authorised by the Financial Services and Markets Act 2000. 2
Agenda Highlights – Steve Parkin, Executive Chairman 1 Financial review – David Hodkin, Chief Financial Officer 2 Operational review – Tony Mannix, Chief Executive Officer 3 o Retail Focused Click and Collect Summary and Q&A – Steve Parkin, Executive Chairman 4 3
Highlights – Steve Parkin, 1 Executive Chairman 4
Highlights – Financial* Group revenue growth of 23.7% to £290.3m (2015: £234.8m), driven by strong growth in all divisions Group Adjusted EBIT growth of 21.0% to £14.5m (2015: £12.0m): E-fulfilment and returns management services – EBIT of £8.1m, up 47.6% (2015: £5.5m) o o Non e-fulfilment logistics – EBIT of £10.7m, up 6.4% (2015: £10.1m) Commercial vehicles – EBIT of £2.3m, up 20.8% (2015: £1.9m) o Adjusted EPS of 10.3p, up 22.6% (2015: 8.4p); basic EPS up 41.1% Proposed final dividend of 4.0 pence per share; total dividend of 6.0p per share Net debt £18.8m; debt: EBITDA 0.96x 5 * The highlights are for the 12 months ended 30 April 2016, as compared to the 12 months ended 30 April 2015
Financial review – David Hodkin, 2 Chief Financial Officer 6
Summary Income Statement £m Year to 30 April Change 2016 2015 % Headline financials Revenue 290.3 234.8 23.7% Strong top-line performance in the year in all business Cost of sales (205.7) (165.6) segments. Gross profit 84.6 69.2 EBIT is the key metric, and saw further strong growth driven Other net gains 0.2 0.3 by: Admin expenses (70.3) (57.5) o contract evolution in the logistics business o strong performance in commercial vehicles Adjusted EBIT 14.5 12.0 21.0% o full year benefit of Servicecare (acquired Dec 2014). Discontinuing costs 1 - (0.3) No discontinuing or exceptional costs in current financial year. Exceptional costs 2 - (0.8) Finance costs in line with prior year. Operating profit 14.5 10.9 Dividends Net finance costs (1.4) (1.4) Interim dividend of 2.0 pence per share, paid December 2015. Profit before tax 13.1 9.5 Income tax (2.8) (2.2) Final proposed dividend 4.0 pence per share, giving total dividend of 6.0 pence per share (4.8 pence year to 30 April Net income 10.3 7.3 2015). Earnings per share (p) 10.3 7.3 Adjusted earnings per share 3 (p) 10.3 8.4 22.6% 1. Discontinuing costs comprise certain advertising, sponsorship and corporate entertaining expenses, consultancy and professional fees in respect of potential investment opportunity appraisals and the costs of operating the Chairman’s private office – all of which ceased at IPO 2. Exceptional costs comprise £0.6m IPO transaction costs and £0.2m costs in relation to the Servicecare acquisition 3. EPS adjusted for discontinuing and exceptional costs and the tax thereon 7
Segmental and business activity performance Revenue £m Year to 30 April Change 2016 2015 % Continued strong growth in Logistics: E-fulfilment & returns management services 97.6 60.6 61.1% o Full year benefit of Servicecare (included within Non e-fulfilment logistics 108.4 102.1 6.1% e-fulfilment & returns management services), which was immediately earnings- enhancing. Total value-added logistics services 206.0 162.7 26.6% o Commercial vehicles 85.6 73.6 16.4% Organic growth on existing contracts in both e-fulfilment (Asos, SuperGroup, Wilko and John Inter-segment sales (1.3) (1.5) Lewis), and non e-fulfilment (British American Tobacco, SuperGroup , Bench and Sainsbury’s). Group total 1 290.3 234.8 23.7% o Full year benefit of prior year contract wins including Philip Morris. Adjusted EBIT o Part-year impact of wins in the year including M&Co, Zara, Haddad and Pep&Co. £m Year to 30 April Change 2016 2015 % Strong growth in commercial vehicles driven by new vehicle sales and aftersales. E-fulfilment & returns management services 8.1 5.5 47.6% Non e-fulfilment logistics 10.7 10.1 6.4% Central logistics overheads (4.7) (4.1) Total value-added logistics services 14.1 11.5 22.5% Commercial vehicles 2.3 1.9 20.8% Head office costs (1.9) (1.4) Group total 2 14.5 12.0 21.0% 1. Excluding the impact of the Servicecare acquisition, Group revenue grew by 19.7% 2. Excluding the impact of the Servicecare acquisition, Group Adjusted EBIT grew by 16.5% 8
Summary cash flow statement £m Year to 30 April 2016 2015 Adjusted EBIT 14.5 12.0 Strong cash flow generated from operations: £17.1m (2015: £9.7m). Depreciation & amortisation 5.0 3.6 Other non-cash items 1 0.5 0.1 Favourable working capital profile maintained. Change in working capital 0.6 (0.6) Net interest paid (1.4) (1.2) £2.2m of deferred consideration paid relating to the acquisition of Servicecare. Tax paid (2.1) (1.7) Net cash flows before non-recurring items 17.1 12.2 Capex incurred on new contracts including Zara, John Lewis Net cash flow on non-recurring items 2 - (2.5) ancillary shed and Click & Collect largely recoverable over Net cash flows from operating activities 17.1 9.7 contract terms through open book mechanism. Dividends paid in line with stated policy at IPO. Acquisition (2.2) (3.7) Net capital expenditure (5.7) - Net cash flows from investing activities (7.9) (3.7) Net advance from/(repayment to) former parent - (14.2) Net drawdown / (repayment of) bank loans (3.9) 9.6 Finance leases advanced 0.2 0.1 Repayment of capital on finance leases (3.2) (3.0) Dividends paid (5.2) (1.9) Net cash flows from financing activities (12.1) (9.4) Net (decrease) / increase in cash & cash equivalents (2.9) (3.4) 1. Other non cash items comprise exchange differences share based payments, and movement in fair value of derivatives 2. Cash impact of discontinuing and exceptional costs which are described on slide 7 9
Summary balance sheet £m As at 30 April 2016 2015 Investment in fixed assets mainly incurred on new open Intangible assets 24.9 24.8 book contracts. Property, plant & equipment 25.6 14.6 Non-current assets 50.5 39.4 Net current liabilities position affects continuing positive working capital model. Inventories 26.2 21.7 Net debt: EBITBA < 1.0. Trade & other receivables 39.9 33.4 Cash & cash equivalents 0.7 1.9 New banking facilities put in place with Santander. Current assets 66.8 57.0 Unused facility as at 30 April 2016 £20.4m. Trade & other payables 72.2 61.7 Borrowings 6.6 5.3 Short term provisions 0.1 0.1 Current tax liabilities 1.7 0.7 Current liabilities 80.6 67.8 Borrowings 12.9 10.2 Long term provisions 0.8 0.8 Deferred tax liabilities 0.2 0.6 Non-current liabilities 13.9 11.6 Net assets 22.8 17.0 Net debt 18.8 13.6 10
Operational review – Tony Mannix, 3 Chief Executive Officer 11
E-commerce update New shared use site in Northampton – John Lewis the anchor customer. The facility combines inbound pre-retail, forward orders and Boomerang and is a main injection hub for Click & Collect. New 2 year contract extension agreed with Wilko. Enhanced processing operations set up for Asos, further developing the Boomerang solution – spot dry cleaning, hand finishing, sewing and buttoning. Browns (a Farfetch brand) contract start up. 12
Non e-commerce update Growth in activities under Philip Morris contract, with the successful start- up of “Package 2” (cigarettes). Successful implementation of new 4 year national distribution contract for M&Co. Haddad/Flyers (Nike and Converse children’s products) new 3 year contract signed with a requirement to double capacity. Commenced additional packing activity with certain tobacco customers. 13
Retail Focused Click & Collect The New Model
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