Vp plc Interim Results Presentation to Carillion for the .../media/Files/V/VP-Plc/... · Results summary 2 The Equipment Rental Specialists H1 H1 2015 2014 Profit before tax and amortisation

Presentation

to Carillion

The Equipment Rental Specialists

9th June 2010


Vp plc

Interim Results

for the six months ended

30 September 2014

● Results Summary

Agenda 1

● Operational Review

● Financial Review


Results summary 2


H1 H1

2015 2014

Profit before tax and amortisation £16.2m £12.8m +27%

Revenue £101.3m £91.3m +11%

Earnings per share pre amortisation 32.81p 26.77p +23%

Interim dividend per share 5.00p 3.60p +39%

Return on average capital employed 14.9% 13.9%

Agenda Highlights 3


● Excellent interim results – 27% profit increase

● Revenue growth – UK and overseas

● Operating margins improved

● Return on average capital employed improved to 14.9%

● Increased fleet investment to support growth opportunities

● Acquisition of rail plant activity from Balfour Beatty Rail in July 2014

● Construction and housebuild markets driving growth

Agenda Revenue and profit trends

Revenue (£m)

Revenues growing

*

4


69.1 82.7 84.0 91.3

101.3

138.1

161.5 167.0

183.1

200.8

0

20

40

60

80

100

120

140

160

180

200

220

2011 2012 2013 2014 H1 2015

8.6 10.4 11.0

12.8

16.2

13.8

16.0 17.4

20.1

24.3

0

2

4

6

8

10

12

14

16

18

20

22

24

26

2011 2012 2013 2014 H1 2015

Profit before tax and amortisation (£m)

Profit progression

* *

*N+1 Singer estimate

Agenda Operational review 5


Markets

Market Segments

* Utilities, Rail, Transmission and Facilities Management

6


Infrastructure

Construction

Other

H1 H1 Growth/

Market 2015 2014 decline

Segment £m £m on prior year

Infrastructure* 44.6 43.9 +2%

Construction 27.6 22.4 +23%

Oil & Gas 12.2 10.0 +22%

Housebuilding 10.2 8.8 +16%

Other 6.7 6.2 +8%

Total 101.3 91.3 +11%

Revenue

Business performance 7


2015 2014 2015 2014

£m £m £m £m

22.6 20.8 5.0 4.6 Major projects and construction

9.1 8.4 2.3 1.5 Housebuild and construction strong

11.2 9.6 1.7 0.7 LNG recovery

13.0 10.6 1.3 1.5 CP4 to CP5 changeover

9.3 9.8 2.0 2.7 Weaker transmission

36.1 31.9 4.8 2.7 Strong momentum in all markets

TOTAL 101.3 91.3 17.2 13.7

Operating Margin 16.9% 15.0% Strong margin growth

Revenues H1 PBITA H1

Agenda Fleet investment supporting growth 8


H1 H1

2015 2014

£m £m

3.0 4.6 Timing

5.2 3.8 High utilisation, sustained demand

Airpac Bukom 3.9 1.0 New products

2.4 0.8 Gearing fleet for CP5 programme

TPA 0.6 0.3 Replacement

8.8 7.9 Growth in demand

Total fleet capex 23.9 18.3

Disposal Proceeds (5.8) (4.1)

Net expenditure 18.1 14.2

Agenda Operational outlook 9


● Business trading well into second half

● Construction and housebuilding markets are key growth drivers

● Infrastructure stable - changeovers in regulatory markets

● Longer term focus on quality of delivery, availability and reliability is

paying off

● Group well positioned to deliver further positive progress

Agenda Financial review 10


Agenda Financial highlights – continuing progress 11

H1 H1 Full Year

2015 2014 2014

Revenue £101.3m £91.3m +11% £183.1m

EBITDA £29.2m £24.6m +19% £44.3m

Profit before tax and amortisation £16.2m £12.8m +27% £20.1m

Net margin 16.0% 14.0% 11.0%

ROACE 14.9% 13.9% 13.5%


Earnings per share – 22% increase 12


H1 H1

2015 2014

Basic EPS 31.36p 25.73p +22%

Profit for period pre tax and amortisation £16.2m £12.8m +27%

Weighted average number shares 39.0m 39.1m

Tax rate 21.2% 18.0%

Agenda

Dividend per share (pence)

Dividend per share – 39% increase 13

H1 H1 FY

2015 2014 2014

Basic EPS 31.36p 25.73p +22% 39.78

Dividend per share 5.00p 3.60p 14.00

Dividend cover 6.3x 7.1x 2.8x

3.1 3.1 3.1 3.25 3.6 5.0

10.8 10.8 11.35 12.25

14.0

0

2

4

6

8

10

12

14

16

2010 2011 2012 2013 2014 H1 2015

Interim Dividend Full Year Dividend


INCREASE PARTLY ADDRESSES IMBALANCE BETWEEN INTERIM AND FINAL

Ave

rag

e C

ap

ita

l E

mp

loye

d £

m

RO

AC

E

140.2

133.8

142.6

148.5

153.0

161.2

169.4 13.3%

12.3%

13.0% 13.3%

13.9% 13.5%

14.9%

3%

5%

7%

9%

11%

13%

15%

17%

120

130

140

150

160

170

180

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Sep 2013 Mar 2014 Sep 2014

Robust ROACE 14

Average Capital

Employed £mROACE


Agenda Strong balance sheet 15


H1 FY H1

2015 2014 2014

£m £m £m

Rental equipment (fleet) 123.5 112.9 106.3

Other assets 56.6 53.2 53.2

Net working capital (1.7) (1.3) 10.6

Deferred tax/pension (3.2) (3.8) (4.5)

Capital employed 175.2 161.0 165.6

Net debt (65.4) (53.0) (56.2)

Net assets 109.8 108.0 109.4

Gearing 60% 49% 51%

Debtor days 59 57 58

Debt write off as % revenue 0.2% 0.6% 0.5%

Financial performance - strong cash generation 16

Cash inflows

Cash outflows

Other

£8.8m

Increase in net debt

£12.4m

Net capex £18.6m

EBITDA : £29.2m

Acquisition

£5.4m

Working

Capital

£3.0m

Tax /

Interest

£1.8m

Dividends

£4.0m


Agenda Bank facilities 17


H1 FY

2015 2014

£m £m

Committed facilities

Due to expire May '16 35 35

Due to expire Oct '17 30 30

Due to expire Oct '17 20 -

Overdraft facilities 5 5

Total facilities 90 70

Step up facility

Due to expire Oct '17 5 25

Net debt 65.4 53.0

1.16 1.05 1.10 1.20 1.33

0.00

0.50

1.00

1.50

2.00

2.50

3.00

FY 11 FY 12 FY 13 FY 14 H1 15

6.10 7.30 8.04

12.28

14.24

2

4

6

8

10

12

14

16

18

Mar 11 Mar 12 Mar 13 Mar 14 H1 15

EBITA

Interest

Cover

Net Debt /

EBITDA

Less than 2.5 times

Greater than 3 times

Lower interest costs higher EBITA

Considerable headroom

Headroom for growth 18


Agenda Supplementary schedules 19


Agenda Cash flow 20

H1 H1 FY

2015 2014 2014

£m £m £m

Operating profits 16.4 13.2 20.7

Depreciation + Amortisation 12.8 11.4 23.6

EBITDA 29.2 24.6 44.3

Changes in debtors/creditors/stock (3.0) (10.4) 4.4

Gross capex (24.3) (17.2) (39.5)

Asset disposal profit (2.1) (1.3) (2.9)

Proceeds from disposals 5.7 4.1 8.5

Acquisitions (5.4) (4.5) (4.5)

Interest (0.9) (1.0) (1.8)

Tax (0.9) (1.7) (3.9)

Dividends (4.0) (3.5) (5.0)

Other (6.7) - (7.4)

Cash movement (change in net debt) (12.4) (10.9) (7.8)


Agenda Effective rate of tax 21


H1 H1

2015 2014

% %

Standard rate 21.0 23.0

Impact of tax rate change on deferred tax - (4.4)

Permanent disallowables 0.4 0.5

Chattels (0.7) (1.3)

Prior year adjustments - (0.4)

Non qualifying depreciation 0.5 0.6

Effective rate 21.2 18.0

Agenda Net working capital 22


H1 H1

2015 2014

£m £m

Inventories 5.7 5.5

Trade debtors 36.5 35.4

Prepayments and other debtors 7.9 9.7

Trade creditors (14.9) (15.2)

Accruals, other creditors and tax (36.9) (24.8)

Net working capital (1.7) 10.6

Group history – 1954 to date 23

Revenue 1970: £2m 1980: £14m 1990: £70m 2000: £55m 2010: £129m 2013: £167m 2014: £183m

2014 Vp plc

Celebrates its

60th Anniversary

1954Vibratory Roller & Plant Hire

(Northern) Limited founded

1973Floated on main market

Vibroplant plc

1980Shoring division

established

1982US powered access

business established

1996Tool Hire:

Cannon Tool Hireacquired in 1996

2001Hire Station formed

through merger of5 regional tool

businesses

2002-2004Shoring expansion

through acquisitionof Mechplant,

Trenchshore &Eve Shorco

2006Acquisition of Bukom

Oilfield Services(Airpac Bukom formed)

1975First move into

specialistplant - Airpac

1990Groundforce

acquired fromSGB

1996Exit from USA;

UK specialist businessesexpanded

1997Rail: Torrent

Trackside acquired

2000UK Forks

divisioncreated

2001Renamed Vp plc

2005TPA and

ESSacquired

2007 - 2009Continuing growth in

specialist areas viaacquisitions of MEP and

U Mole

2010Geographical expansion:

Global (Airpac Bukom).Eire (Groundforce),

Germany (TPA)

1954

19731980 1990

2006

2011Mainland Europe -

Groundforce

2014


24

UK market leaders in the rental and sale of shoring products and

solutions:

• Groundforce has the largest excavation support

fleet in the UK and Ireland

• Plus, specialist products and services

° Piletec & Mr Cropper – piling equipment

° Stopper Specialists – pipeline pressure testing

° Shorflo – pumps

° ‘U’ Mole – trenchless technology

Markets:

• Civil engineering (including regulated AMP

programme), construction and housebuilding

Opportunities:

• Infrastructure, European growth and construction recovery


National hire of telescopic handlers/rough

terrain forklifts:

• Only UK national telehandler specialist

• Fleet of c.1450 machines

• Strategically located distribution network

Markets:

• General construction, housebuild and industry

Opportunities:

• Housebuilding improvement, market share growth

25


Agenda 26

International rental of high pressure air compressors, steam

generators and specialist equipment supported by skilled engineers:

• Global network of six service and distribution facilities located in the

UK (Aberdeen and Great Yarmouth), Singapore, Australia, Middle

East and Latin America

• Rental assignments in more than 60 countries

Markets:

• Well testing, rig maintenance, gas transfer, LNG

Opportunities:

• Well test market, LNG, new products and growth in under

represented geographic regions


27

Europe’s market leader in portable roadways:

• Operations in UK, Germany and Republic of Ireland

• Skilled installation of bespoke roadways and walkways

Markets:

• Transmission, construction, rail and outdoor events

Opportunities:

• Regulated transmission programme, new products and

European growth


Agenda 28

Provision of rail specific light plant, trackside lighting and skilled

trackside personnel:

• Genuine 24/7 x 365 national support

• The widest range of specialist portable rail equipment in the UK

• Significant safety and compliance barriers to

entry in a regulated market

Markets:

• Maintenance and renewals projects on national rail

network, London Underground and Network Rail

maintenance contract

Opportunities:

• CP5, Crossrail, maintenance


Tool hire and specialist equipment for construction

and industry:

• Local tool hire branches supported by national call centre

• Plus, specialist products and services

° ESS Safeforce – safety equipment and confined space training

° MEP – press fitting, electrofusion and low level access

° Virtual Hire – ‘white label’ partnerships,

e.g. Homebase, Garden Centre Group

Markets:

• Construction, industry, civil engineering, housebuild, DIY

Opportunities:

• Specialist products, market share growth

29


Documents

Vp plc Interim Results Presentation to Carillion for the .../media/Files/V/VP-Plc/... · Results summary 2 The Equipment Rental Specialists H1 H1 2015 2014 Profit before tax and amortisation