Presentation to Carillion

Transcription

1 DRAFT #3 (24 Nov) 1 Presentation to Carillion The Equipment Rental Specialist 9 th June 2010 Interim Results for the period ended 30 September 2016 The Equipment Rental Specialists The Equipment Rental Specialists

2 Agenda 2 Strategy & Highlights Operational Review Financial Review

3 Strategy & Highlights 3

4 Business Model and Strategy 4 Embrace change and look for innovation yet take long term view Use our strong balance sheet and positive cash generation to grow through fleet investment and acquisitions WE AIM TO CREATE VALUE THROUGH SPECIALIST EQUIPMENT RENTAL IN NICHE SECTORS WHERE WE HAVE MARKET LEADING POSITIONS Aim to provide value added services people, training, design Buy quality products at competitive prices, maintain our assets through their rental life cycle Retaining and attracting the best people and working safely are key to our aims of exceeding customer expectations and enhancing shareholder value Deliver product service reliability and operational excellence: - centralised hire desk - sector leading IT systems

5 A positive trading period 5 Excellent progress 9% uplift in profits 16% revenue growth mix of organic and acquisitions Profit margin 15.4% Fleet investment increased to 29.9m Return on average capital employed 15.6% TR Group acquired April 2016 No change in business demand since Brexit

6 Revenue and profit profile 6 Revenue Profit before tax and amortisation m m * * H H N+1 Singer forecast *

7 Operational Review 7

8 Key markets 8 H H Other 10% House building 11% Oil & Gas 9% Infrastructure 43% Other House 5% building 13% Oil & Gas 10% Infrastructure 45% Construction 27% Construction 27%

9 Market dynamics 9 Market Segment H m Revenue H m Growth/ Decline on prior year Infrastructure* % Civils & Transmission Construction % R+M/fit out/market share Oil & Gas % Onshore Offshore Housebuilding % Private sector Other Events / Defence Total % * Utilities, Rail, Transmission and Facilities Management

10 Business performance - UK 10 H H Revenue % PBIT % Margin 18.0% 17.8% Infrastructure growth Groundforce Construction growth strong trade in Hire Station Stable housebuild activity UK Forks Busy rail sector Torrent Trackside

11 11 Business performance - International H H Revenue PBIT Margin 4.8% 11.9% Offshore oil & gas markets remain challenging Maiden, part year contribution from TR Group TR Group integrating well into Vp

12 Acquisition TR Group 12 TR Group Pty Australia, Malaysia, New Zealand Acquired April 2016 Consideration A$17.4m Test & measurement, communications and audio visual rental Settling in well to the Vp group Tech Rentals NZ acquisition post period end NZ$2.6m

13 Fleet investment 13 H H m m UK International Total fleet capex Disposal proceeds (8.1) (9.2) Net expenditure Strong fleet capex in UK Growth investment into Hire Station / Groundforce / TPA International fleet capex TR Group

14 Operational outlook 14 Construction, housebuild and infrastructure remain positive markets in UK Offshore oil and gas challenged but recovery anticipated in medium term Investment opportunities both for UK and International divisions Trading into H has started well Autumn statement supportive on housebuilding and infrastructure investment Alert to any changes in sentiment Anticipate positive progress for the full year

15 Financial Review 15

16 Financial highlights continuing progress 16 H H FY 2016 Revenue 121.7m 105.1m +16% 208.7m EBITDA 36.3m 31.4m +16% 59.3m Profit before tax and amortisation 18.7m 17.2m +9% 29.8m Net margin 15.4% 16.4% 14.3% ROACE 15.6% 16.1% 16.3%

17 Earnings per share 8% increase 17 H H Basic EPS (pre amortisation) Profit for period before tax and amortisation Weighted average number of shares Tax rate 37.9p 35.1p +8% 18.7m 17.2m +9% 39.1m 38.9m 20.7% 20.5%

18 Interim dividend 12% increase 18 H H FY 2016 Basic EPS (pre amortisation) 37.9p 35.1p +8% 62.21p Interim dividend per share 6.00p 5.35p +12% 18.85p Dividend cover 6.3x 6.6x 3.3x Dividend per share (pence) H Interim Dividend Full Year Dividend

19 Strong ROACE Average Capital Employed - m ROACE % % % 14.9% 16.2% 16.1% 16.3% % 17% 15% % % 9% 7% 5% 120 FY14 H1 15 FY 15 H1 16 FY 16 H1 17 3%

20 Robust balance sheet 20 H FY 2016 H m m m Rental equipment (fleet) Other property, plant and equipment Goodwill and intangibles Net working capital 2.4 (2.3) 0.9 Deferred tax / pension (4.5) (3.8) (3.1) Net debt (107.5) (86.1) (81.8) Net assets Gearing 83% 71% 72% Debtor days Debt write off as % revenue 0.4% 0.4% 0.3%

21 Healthy EBITDA, significant investment 21 Cash inflows EBITDA : 36.3m Cash outflows Net capex 25.5m Acquisitions 8.9m Working Capital 4.7m Tax / Interest 2.9m Dividends 5.3m Other 10.4m Increase in net debt 21.4m

22 Bank facilities Committed facilities H m FY 2016 m Due to expire Oct Due to expire May Overdraft facilities 5 5 Total facilities Step up facility H m FY 2016 m Net debt Headroom

23 Headroom for growth Greater than 3 times EBITA Interest Cover Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 H Net Debt / EBITDA Less than 2.5 times FY 12 FY 13 FY 14 FY 15 FY 16 H1 17 Considerable headroom

24 Any Questions? 24

25 Supplementary Schedules 25

26 Group history 1954 to date Vibratory Roller & Plant Hire (Northern) Limited founded Floated on main market Vibroplant plc Shoring division established 1982 US powered access business established Tool Hire: Cannon Tool Hire acquired 2001 Hire Station formed through merger of 5 regional tool businesses 2000 UK Forks division created 2006 Acquisition of Bukom Oilfield Services (Airpac Bukom formed) 2001 Renamed Vp plc 2005 TPA and ESS acquired 2010 Geographical expansion: Global (Airpac Bukom). Eire (Groundforce), Germany (TPA) 2015 Acquisition of Test & Measurement Vp celebrates its 60th Anniversary Acquisition Higher Access and TR Pty Ltd 1975 First move into specialist plant Airpac 1990 Groundforce acquired from SGB 1996 Exit from USA; UK specialist businesses expanded 1997 Rail: Torrent Trackside acquired Revenue: 1970: 2m 1980: 14m 1990: 70m 2000: 55m 2010: 128m 2013: 167m 2014: 183m 2015: 206m 2016: 209m

27 UK division Rough terrain material handling equipment and tracked access platforms Excavation support systems and specialist products 27 Tool hire, safety equipment, press fitting and low level access Infrastructure equipment and services to the railway renewals and maintenance sector Portable roadway solutions International division TR Group Equipment and service providers to the international oil and gas exploration and development markets Test & Measurement, communications and audio visual rental in Australia, New Zealand and Malaysia.

28 Cash flow 28 H H FY 2016 m m m Operating profits Depreciation / Amortisation EBITDA Changes in working capital (4.7) (6.7) (6.7) Gross capex (33.6) (29.8) (50.2) Asset disposal profit (3.3) (3.1) (6.2) Proceeds from disposals Acquisitions (8.9) - (7.1) Interest (1.4) (1.0) (2.1) Tax (1.5) (2.7) (4.8) Dividends (5.3) (4.5) (6.6) Other (2.8) (7.8) (9.0) Debt / Finance Leases acquired (4.3) - (3.1) Cash movement (change in net debt) (21.4) (15.0) (19.3)

29 Effective rate of tax 29 H % H % Standard rate Impact of tax rate change on deferred tax - - Permanent disallowables Chattels (1.3) (0.9) Prior year adjustments Non qualifying depreciation Overseas tax Effective rate

30 Net working capital 30 H m FY 2016 m H m Cashflow movement H Inventories Trade debtors (5.9) Prepayments and other debtors (0.7) Trade creditors (19.6) (18.8) (16.8) 0.8 Accruals, other creditors and tax (34.8) (33.7) (31.3) 1.1 Net working capital 2.4 (2.3) 0.9 (4.7) Capital creditors movement 2.0 Other cashflow swap/tax (2.0) Cashflow changes in debtors, creditors and stock (4.7)