Self help delivering results Speedy Hire Plc Interim Results F For the 6 months ended 30 September 2011 th 6 th d d 30 S t b 2011
Ishbel Macpherson Ishbel Macpherson Chairman Chairman
Summary Significant improvement in profitability vs prior year Continuing EBITDA (pre ‐ exceptional) increased by 29.2% g (p p ) y Successfully disposed of the accommodation operation, removing loss maker and reducing net debt reducing net debt Completed the refinancing of the debt facilities, providing sustainable funding and increasing flexibility Progress continues into H2 and the Board is confident of meeting its expectations 3
Group Finance Director Group Finance Director Lynn Krige Lynn Krige
Financial highlights 6 months to 6 months to September September 2011 2011 2010 2010 £m £m Revenue 177.3 161.8 EBITDA* 24.9 29.8 EBITDA % 18% 14% EBIT* 8.4 (4.6) PBT* 4.8 (9.9) Adjusted earnings/(loss) per share* (1.9p) 0.9p DPS (UK GAAP) DPS (UK GAAP) 0 2p 0.2p 0 2p 0.2p Operating cash flow (before net hire fleet capex) 17.5 29.8 Free cash flow ** 37.4 (2.7) Net debt 77.0 123.0 Net debt / EBITDA* 2.1x 1.1x *pre amortisation and exceptional costs p p **pre dividends and financing 5
Continuing* trading financial highlights 6 months to 6 months to S September t b September S t b 2011 2010 Change Change £m £m £m Continuing* revenue Continuing* revenue 158.9 158 9 155 6 155.6 3 3 3.3 2 1% 2.1% Continuing* EBITDA (pre exceptional costs) 29.2 22.6 6.6 29.2% EBITDA % 18.4% 14.5% 3.9bps Continuing* EBITA (pre exceptional costs) (2.2) 10.7 n/a 8.5 EBITA % 5.3% (1.4%) 6.7bps *continuing data excludes the disposed accommodation operations and the expired Network Rail contract continuing data excludes the disposed accommodation operations and the expired Network Rail contract 6
Continuing P&L bridge 160 e evenue 158 156 £m 158.9 154 155.6 152 152 R 150 30 A* 28 EBITDA 26 26 £m 29.2 24 22 22.6 20 9 7 TA* 5 8.5 3 £m EBIT 1 £ (2.2 ) (1) (3) (5) Continuing H1 FY11 UK & Ireland Intern'l & TAS Corporate costs Continuing H1 FY12 * pre exceptional costs UK & Ireland driving profit improvement 7
UK & Ireland 6 months to 6 months to Continuing* EBITDA** margin September September 2011 2010 Change £m £m 21.1% Revenue 172.8 (9.6%) 156.2 17.5% Continuing* revenue 151.1 1.5% 153.3 EBITDA ** EBITDA ** 28 8 28.8 14 6% 14.6% 33 0 33.0 Sep 2010 Sep 2011 Continuing* EBITDA ** 26.5 22.2% 32.4 17.5% 21.1% Continuing* EBITA** margin EBITA** 1.5 815.0% 13.7 3 Continuing* EBITA** 3.9 254.5% 13.8 9.0% 2.6% 9.0% * continuing data excludes the disposed accommodation operations and the expired Network Rail contract 2.6% ** pre exceptional costs Sep 2010 Sep 2011 Disposed of loss making accommodation operation Focus on improving hire rates, not growing low margin revenue Sustainable operational efficiencies leading to improved profitability Pricing improvement and efficiencies delivering improved margins 8
International and Training & Advisory Services 6 months to International Asset Services 6 months to September September 2010 Change 2011 £m £m Ongoing progress from Revenue 3.7 29.3% 4.8 Increasing revenues EBITDA EBITDA 0 6 0.6 (0 3) (0.3) n/a n/a Reducing losses EBITA (0.8) (1.4) n/a Recent contract wins will continue to support revenue growth in H2 6 months to Training & Advisory Services 6 months to September September 2010 2010 Change Change 2011 2011 £m £m Advisory Services has Revenue 0.8 0.8 (5.5%) underperformed and has been closed EBITDA* ( (0.8) ) ( (0.4) ) n/a Training is performing satisfactorily EBITA* (0.8) (0.4) n/a and has transferred to UK Asset * including closure costs Services where it will benefit from alignment with the hire operations alignment with the hire operations 9
Strong financial position September September March 2010 2010 2011 2011 2011 2011 £m £m £m Property, plant & equipment 223.8 270.3 219.9 Net debt 77.0 123.0 113.9 Net debt : EBITDA* 2.1x 1.8x 1.1x Shareholder funds 227.8 236.3 229.4 Return on capital employed (0.1%) 2.3% 6.4% Net asset value per share 44p 46p 44p Gearing Gearing 52.1% 52 1% 49.7% 49 7% 33.8% 33 8% *pre exceptional costs Continued increase in balance sheet strength Continued increase in balance sheet strength Net debt reducing, whilst increasing investment in hire fleet 10
Strong cash generation supports fleet investment 6 months to 6 months to September September 2010 2011 £m £m 17.5 Cash generated from operations 29.8 Purchase of hire equipment Purchase of hire equipment (18 3) (18.3) (26 7) (26.7) Proceeds from sale of hire equipment 6.5 6.9 Net investment in non-fleet assets (1.4) (2.5) Interest, tax, dividends and other (8.0) (4.0) (3.7) Net cash flow from operating activities 3.5 Proceeds from accommodation disposal - 33.4 (3.7) Reduction in net debt 36.9 Opening net debt (119.3) (113.9) (123.0) Closing net debt (77.0) Improvement in operational cash generation – up 70% on prior year Increased investment in hire fleet – up 46% on prior year Continued reduction in net debt – net debt: EBITDA at 30 September of 1.1x 11
Hire fleet investment 50 180% 45 160% 40 140% 35 120% % 30 100% £m 25 80% 80% 20 60% 15 40% 10 10 20% 5 0 0% H1 FY08 H2 FY08 H1 FY09 H2 FY09 H1 FY10 H2 FY10 H1 FY11 H2 FY11 H1 FY12 Fleet capex (gross) (LHS) Fleet depreciation (LHS) Capex % of depreciation (RHS) Significant investment in capex funded from operating cash flows 12
Debt structure & headroom Borrowing Book value Book value Borrowings Borrowings Total facility Total facility base Receivables R i bl £91.5m £5.0m Overdraft 85% of eligible UK & Ireland debtors Total £148.2m £63.2m £42.2m Plant & unutilised ABL facility £215.0m facility y machinery machinery £172.3m 85% of eligible UK & Ireland plant & machinery £106.0m £85.0m Funding secure – underpins capacity to invest in hire fleet 13
ABL – supports growth Worked example Worked example Book value Book value Borrowing base Borrowing base Borrowings Borrowings Invest £20m in UK hire fleet Borrowing base increases Upon payment of capex creditor, borrowings Growth in revenue results in 85% of additional fleet increase by £20m y increase in UK debtors of 85% of additional Unutilised facility almost £4m debtors unchanged £95.5m £91.5m Receivables Total £168.6m Total £148.2m £63.6m £45.6m unutilised £63.2m £42.2m £42 2m facility facility unutilised ili d Plant & facility £192.3m £172.3m machinery £123.0m £106.0m £105.0m £85.0m 14
Summary St Strong cash generation h ti Return to profitability Balance sheet provides platform for future growth 15
Steve Corcoran Steve Corcoran Chief Executive Chief Executive
Self help delivering results Reduced Costs Reduced Costs Improved Efficiency Identified Opportunities Innovated Products and Services Measure, Measure, Measure! 17
Cost reduction 3,100 5,500 2,900 5,000 2,700 f employees r of vehicles 2,500 4,500 2,300 Number of Number 4,000 2,100 1,900 3,500 1,700 1,500 3,000 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 600 14% 140 (£m) ) ) ng vs peak costs 120 120 12% 12% ng 12 month (£m pre ‐ exceptionals 500 100 10% 400 8% 80 300 EBITA margin (p Revenue ‐ rollin ualised cost savi 60 6% 200 4% 40 100 2% 20 Ann 0 0 0% Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 18 All data for Group excluding International and Training & Advisory Services
Delivering through reduced costs & efficiencies Revenue decline 280 260 venue e ) ar revenue (£m 240 Revenue stability 220 200 180 Rev Half yea 160 160 140 120 100 Cost reduction 35 30 BITA* * Business efficiency Business efficiency r EBITA* (£m) 25 20 15 10 E Half yea 5 0 ‐ 5 ‐ 10 10 Post sale of * pre exceptional costs accommodation Operational gearing will drive benefits from efficiencies 19
Improved efficiency & customer satisfaction Operations Assets Revenue Per Man + 4% Hire Rate + 8% Per Van + 1% Utilisation + 6% Per Site + 7% Yield + 7% EBITA EBITA margin 9% i 9% ROCE 6% ROCE 6% Customer Service Customer Service Processes Processes Credit Notes + 11% Equipment reliability 94% Queries Queries 15 % - 15 % On time / In full On time / In full 94% 94% Working Capital - £5.7m Availability 64% Operating Cashflow + 70% Recommendation Score 93% 20 20
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