ASX announcement FY14 results

ASX Announcement
25 August 2014
Spotless exceeds FY2014 prospectus forecast

Revenue, EBITDA, NPAT and cash flow all exceed prospectus forecasts

Statutory NPAT of ($34.7) million, 16.2% ahead of prospectus forecast

Pro forma NPAT1 of $106.6 million, 3.1% ahead of prospectus forecast

Well positioned for future growth through a pipeline of identified opportunities

Recently won contract to provide services to Australian Department of Defence in Queensland
and New South Wales in a contract valued at $1.2 billion over six years

Reaffirms FY2015 prospectus forecasts
Spotless Group Limited (Spotless; ASX: SPO), a leading provider of outsourced facility services in Australia and
New Zealand, today announced it had exceeded prospectus forecasts for the full year ended 30 June 2014
(FY2014). Spotless listed on the ASX on 23 May 2014.
Spotless’ total statutory revenue of $2.62 billion and pro forma sales revenue2 of $2.51 billion exceeded
prospectus forecasts by 2.3% and 1.4% respectively.
Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) of $185.9 million was 3.6%
ahead of prospectus forecast, while pro forma EBITDA3 was $252.2 million, 1.4% ahead of prospectus forecast.
Pro forma reporting is calculated on a basis consistent with the prospectus lodged with ASIC on 28 April 2014.
The Chairman of Spotless, Ms Margaret Jackson, said the results were a reflection of the solid and stable nature
of the Spotless business under the stewardship of good management.
“The Board has great confidence in the performance of Spotless as it continues to win competitive tenders and
partner with long-term clients on facilities management opportunities and critical service needs,” Ms Jackson
said. “The management team has done an outstanding job of refocusing the business on customer needs over
the past two years, positioning Spotless as the leading service provider to many important local enterprises,
agencies, organisations and projects.
“On behalf of the Board, I would like to thank management and the 33,000 team-members who contributed to
today’s pleasing result. The Board looks forward to the continued success of Spotless and reaffirms prospectus
forecasts as we head into the 2015 financial year.“
The Chief Executive of Spotless, Mr Bruce Dixon, said Spotless’ maiden result signalled a strong new beginning
for the company.
Spotless Group Holdings Limited ABN 27 154 229 562
549 St Kilda Road, Melbourne VIC 3004 Australia www.spotless.com
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“We’re pleased to deliver results for our shareholders that are in line with prospectus forecasts and on track to
deliver our broader long term growth strategy for the company,” said Mr Dixon. “Our national presence across
Australia and New Zealand along with our scale, integrated offering and established brand reputation places us
in a strong competitive position as we move into the new financial year.”
Positioned for growth
Earlier this month, Spotless announced that it had been awarded a significant contract to manage Department of
Defence facilities in Queensland and Southern New South Wales. The initial contract term is for six years, with
options to renew for up to four years. The annualised revenue from this contract is $200m and the contract will
commence from 1 November 2014.
Spotless CEO Bruce Dixon said: “Our successful tender for Defence was very pleasing and a great example of
the momentum in the Spotless business. We have a pipeline of identified potential new contract opportunities
and we’re pleased to be converting these opportunities and underpinning future revenue streams.”
As the largest provider of integrated services in Australia and New Zealand, Spotless offers its customers:

Scale and national presence

Breadth of services including fully integrated facilities management, catering, cleaning and laundries
services

History and reputation, giving confidence and lowering risk

Control and reliability with the ability to self-deliver 75% of services

Local ownership, management and service delivery
Spotless remains well positioned to capitalise on underlying growth in the facilities management market and a
trend towards increased outsourcing of services contracts in government and enterprise. The company is also
pursuing a strategy to grow market share by broadening client relationships and expanding into adjacent
services and sectors.
Strong financial position
Spotless maintains a strong financial position. Pro forma net cash flow (before financing and tax) was 14.4%
ahead of prospectus forecast. Spotless reported net debt of $526.8 million, with net debt to FY14 pro forma
EBITDA is 2.09 times, compared to the company’s prospectus target of 2.48 times.
Outlook
Spotless reaffirms its prospectus forecasts and is expecting to deliver: EBITDA of $301.4 million; NPAT of
$134.5 million; and Adjusted NPAT of $141.8 million for the full year ending 30 June 2015 (FY2015). Spotless
Directors intend to commence paying a dividend in FY2015 and are targeting a payout ratio of between 65% and
75% of Adjusted NPAT.
For further information:
Investor and analyst contact
Danny Agnoletto
Chief Financial Officer
T +61 3 9269 7600
Media contact
Lauren Thompson
T: +61 438 954 729
Note on Pro forma Information: The pro forma information and EBITDA are non-IFRS information and have not been audited or reviewed in accordance with Australian
Auditing Standards.
1: Pro Forma NPAT represents the statutory NPAT adjusted for transaction and restructuring costs, listed public company costs and directors' fees, the new share based
payment plan, write-off of borrowing costs and the full year impact on interest expense of the post IPO debt structure.
2: Pro Forma Sales Revenue represents statutory sales revenue excluding legacy pass through revenue and other income.
3: Pro Forma EBITDA represents statutory EBITDA adjusted for transaction and restructuring costs, listed public company costs and directors’ fees and the new share
based payment plan totalling $66.3 million.
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