Presentation to Carillion

Transcription

1 Presentation to Carillion 9 th June 2010 Vp plc Interim Results for the six months ended 30 September 2013 The Equipment Rental Specialists The Equipment Rental Specialists

2 1 Results Summary Operational Review Financial Review

3 Results summary 2 H1 H Profit before tax and amortisation 12.8m 11.0m +17% Revenue 91.3m 84.0m +9% Earnings per share pre amortisation 26.77p 22.46p +19% Interim dividend per share 3.60p 3.25p +11% Return on average capital employed 13.9% 13.2%

4 Highlights 3 17% profit increase excellent results Revenue growth in UK and overseas Margins increased revenue quality, cost control ROCE further improved to 13.9% Fleet investment growth rate increased Acquisition of Mr Cropper in September % dividend increase backed by strong earnings growth

5 Revenue and profit trends Revenue ( m) * Profit before tax and amortisation ( m) * * 4 Revenues growing Profit progression *N+1 Singer estimate

6 Operational review 5

7 Markets 6 Market Segments Other Events Housebuilding Revenue H1 H1 Growth/ Market decline Segment m m on prior year Infrastructure* % Construction % Oil & Gas Construction Infrastructure Oil & Gas % Housebuilding % Events % Other % Total % * Utilities, Rail, Transmission and Facilities Management

8 Divisional overview 7 Specialist market focus continues to pay dividends Capital investment accelerated to meet increasing demand Quality of return on investment not compromised improved ROCE Markets are improving particularly infrastructure and housebuild Excellent progress for Groundforce, UK Forks and Hire Station After a slow start Airpac Bukom improved well in Q2 Progress for Groundforce and TPA in Europe Successful integration of Mr Cropper acquisition into Groundforce Revenue growth in both UK (+8%) and International (+13%)

9 Business performance Revenues H1 PBITA H m m m m Improving housebuild sector Regulated markets Slow start but improving Growth in tools & safety UK and Europe progress Consistent rail demand 8 TOTAL Operating Margin 15.0% 14.6% Further margin improvement

10 Capital investment in fleet H1 H m m UK Forks Accelerated fleet investment 9 Groundforce Shoring products and Europe Airpac Bukom Replacement capex Hire Station Tools, safety and MEP growth TPA Replacement capex Torrent Trackside Replacement capex Total fleet capex Disposal Proceeds (4.1) (3.9) Net expenditure

11 Operational outlook 10 H2 has started well Increased pace of investment will continue but not at the expense of ROCE Core markets are anticipated to remain busy Construction - slower recovery trajectory but improving Further recovery in oil and gas segment Overseas business streams to develop further Outlook remains positive for all divisional activities

12 Financial review 11

13 Financial highlights continuing progress 12 H1 H1 Full Year Revenue 91.3m 84.0m +9% 167.0m EBITDA 24.6m 22.7m +8% 41.0m Profit before tax and amortisation 12.8m 11.0m +17% 17.4m Net margin 14.0% 13.0% 10.4% ROACE 13.9% 13.2% 13.3%

14 Earnings per share 19% increase 13 H1 H Basic EPS 25.73p 21.63p +19% Profit for period pre tax and amortisation 12.8m 11.0m +17% Weighted average number shares 39.1m 38.6m Tax rate 18.0% 20.8%

15 Dividend per share 11% increase 14 H1 H1 FY Basic EPS 25.73p 21.63p +19% Dividend per share 3.60p 3.25p Dividend cover 7.1x 6.7x 2.7x Dividend per share (pence) H1 14 Interim Dividend Full Year Dividend

16 Strong balance sheet 15 H1 FY H m m m Rental equipment (fleet) Other assets Net working capital Deferred tax/pension (4.5) (6.2) (7.3) Capital employed Net debt (56.2) (45.3) (50.1) Net assets Gearing 51% 45% 51% Debtor days Debt write off as % revenue 0.5% 0.7% 0.7%

17 Financial performance strong cash generation Fleet 18.3m Other 1.2m Mr Cropper Includes trade debtors 5m 3m capex prepayment 10 Opening EBITDA Change Interest / Dividend Capex Asset Acquisition Closing Debt Working Tax Disposal Debt 31/03/13 Capital NBV 30/09/13

18 Average Capital Employed m Robust ROACE 17 ROACE Average Capital Employed m ROACE Estimated WACC

19 Bank facilities 18 Committed facilities 30 Sep 31 Mar m m Due to expire May '13-35 Due to expire Aug '15-30 Due to expire May ' Due to expire Nov ' Overdraft facilities 5 5 Total facilities Step up facility Due to expire Nov ' Net debt

20 Headroom for growth 19 EBITA Interest Cover Greater than 3 times Lower interest costs higher EBITA Net Debt / EBITDA Less than 2.5 times Considerable headroom

21 Supplementary schedules 20

22 Cash flow H1 H1 FY m m m Operating profits Depreciation + Amortisation EBITDA Changes in debtors/creditors/stock (10.4) (3.4) 0.5 Gross capex (17.2) (15.1) (29.6) Asset disposal profit (1.3) (1.3) (2.6) Proceeds from disposals Acquisitions (4.5) (4.1) (4.1) Interest (1.0) (1.4) (2.5) Tax (1.7) (1.6) (3.8) Dividends (3.5) (3.2) (4.4) Other - (6.2) (9.0) Cash movement (change in net debt) (10.9) (9.7) (4.9)

23 Effective rate of tax 22 Sep 2013 Sep 2012 % % Standard rate Impact of tax rate change on deferred tax (4.4) (3.0) Permanent disallowables Chattels (1.3) (1.2) Share option schemes - - Prior year adjustments (0.4) (0.3) Non qualifying depreciation Other - - Effective rate

24 Net working capital 23 H1 H m m Inventories Trade debtors Prepayments and other debtors Current assets Trade creditors (15.2) (16.4) Accruals, other creditors and tax (24.8) (23.2) Net working capital

25 Group history 1954 to date Vibratory Roller & Plant Hire (Northern) Limited founded 1973 Floated on main market Vibroplant plc 1980 Shoring division established 1982 US powered access business established 1996 Tool Hire: Cannon Tool Hire acquired in Hire Station formed through merger of 5 regional tool businesses Shoring expansion through acquisition of Mechplant, Trenchshore & Eve Shorco 2006 Acquisition of Bukom Oilfield Services (Airpac Bukom formed) TPA and ESS acquired 2011 Mainland Europe - Groundforce Geographical expansion: Global (Airpac Bukom). Eire (Groundforce), Germany (TPA) Renamed Vp plc UK Forks division created Continuing growth in specialist areas via acquisitions of MEP and U Mole 1975 First move into specialist plant - Airpac 1990 Groundforce acquired from SGB 1997 Rail: Torrent Trackside acquired 1996 Exit from USA; UK specialist businesses expanded Turnover 1970: 2m 1980: 14m 1990: 70m 2000: 55m 2010: 129m 2013: 167m

26 TPA 25 Europe s market leader in portable roadways: Operations in UK, Republic of Ireland and Germany Skilled installation of bespoke roadway and fencing solutions Markets: Transmission, outdoor events, rail and construction Opportunities: Regulated transmission programme, new products and European growth

27 UK Forks 26 National hire of telescopic handlers/rough terrain forklifts: Only UK national telehandler specialist Fleet of c.1300 machines Strategically located distribution network Markets: General construction, housebuild and industry Opportunities: Housebuilding improvement, market share growth

28 Hire Station 27 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 Groundforce 28 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

30 Torrent Trackside 29 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

31 Airpac Bukom 30 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: Recovery in well test market, new applications and growth in under represented geographic regions