to Carillion for the six months ended 9 th June 2010 30 September - PowerPoint PPT Presentation

Vp plc Presentation Interim Results to Carillion for the six months ended 9 th June 2010 30 September 2014 The Equipment Rental Specialists The Equipment Rental Specialists

Agenda 1 ● Results Summary ● Operational Review ● Financial Review The Equipment Rental Specialists

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% The Equipment Rental Specialists

Highlights 3 Agenda ● 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 The Equipment Rental Specialists

Revenue and profit trends 4 Agenda Revenue Profit before tax and amortisation (£m) (£m) 220 26 200 24 * * * 22 180 24.3 20 160 200.8 18 140 183.1 20.1 16 167.0 161.5 120 17.4 14 16.0 138.1 100 12 13.8 80 10 8 16.2 60 101.3 12.8 6 91.3 84.0 11.0 40 82.7 10.4 69.1 8.6 4 20 2 0 0 2011 2012 2013 2014 H1 2015 2011 2012 2013 2014 H1 2015 *N+1 Singer estimate Revenues growing Profit progression The Equipment Rental Specialists

Operational review 5 Agenda The Equipment Rental Specialists

Markets 6 Market Segments Revenue H1 H1 Growth/ Market 2015 2014 decline Segment £m £m on prior year Other Infrastructure* 44.6 43.9 +2% Construction 27.6 22.4 +23% Infrastructure Oil & Gas 12.2 10.0 +22% Housebuilding 10.2 8.8 +16% Construction Other 6.7 6.2 +8% Total 101.3 91.3 +11% * Utilities, Rail, Transmission and Facilities Management The Equipment Rental Specialists

Business performance 7 Revenues H1 PBITA H1 2015 2015 2014 2014 £m £m £m £m 22.6 5.0 20.8 4.6 Major projects and construction 9.1 2.3 8.4 1.5 Housebuild and construction strong 11.2 1.7 9.6 0.7 LNG recovery 13.0 1.3 10.6 1.5 CP4 to CP5 changeover 9.3 2.0 9.8 2.7 Weaker transmission 36.1 4.8 31.9 2.7 Strong momentum in all markets TOTAL 101.3 17.2 91.3 13.7 Operating Margin 16.9% 15.0% Strong margin growth The Equipment Rental Specialists

Fleet investment supporting growth 8 Agenda 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 The Equipment Rental Specialists

Operational outlook 9 Agenda ● 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 The Equipment Rental Specialists

Financial review 10 Agenda The Equipment Rental Specialists

Financial highlights – continuing progress 11 Agenda H1 H1 Full Year 2015 2014 2014 £101.3m +11% Revenue £91.3m £183.1m £29.2m +19% EBITDA £24.6m £44.3m £16.2m +27% Profit before tax and amortisation £12.8m £20.1m 16.0% Net margin 14.0% 11.0% 14.9% ROACE 13.9% 13.5% The Equipment Rental Specialists

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% The Equipment Rental Specialists

Dividend per share – 39% increase 13 Agenda 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 INCREASE PARTLY ADDRESSES IMBALANCE BETWEEN INTERIM AND FINAL Dividend per share (pence) 16 14 12 10 14.0 8 12.25 11.35 10.8 10.8 6 4 5.0 2 3.6 3.25 3.1 3.1 3.1 0 2010 2011 2012 2013 2014 H1 2015 Interim Dividend Full Year Dividend The Equipment Rental Specialists

Robust ROACE 14 180 17% 14.9% Average Capital Employed £m 15% 170 13.9% 13.5% 169.4 13.3% 13.3% 13.0% 13% 12.3% 160 161.2 11% ROACE 153.0 150 148.5 9% 142.6 140 140.2 7% 133.8 130 5% 120 3% Mar 2010 Mar 2011 Mar 2012 Mar 2013 Sep 2013 Mar 2014 Sep 2014 Average Capital ROACE Employed £m The Equipment Rental Specialists

Strong balance sheet 15 Agenda 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% The Equipment Rental Specialists

16 Financial performance - strong cash generation Cash inflows EBITDA : £29.2m Cash outflows Working Tax / Acquisition Dividends Other Net capex £18.6m Capital Interest £5.4m £4.0m £8.8m £3.0m £1.8m Increase in net debt £12.4m The Equipment Rental Specialists

Bank facilities 17 Agenda 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 The Equipment Rental Specialists

Headroom for growth 18 18 Greater than 3 times 16 14.24 14 12.28 EBITA 12 Interest 10 8.04 7.30 8 Cover 6.10 6 4 2 Mar 11 Mar 12 Mar 13 Mar 14 H1 15 Lower interest costs higher EBITA 3.00 2.50 Less than 2.5 times 2.00 Net Debt / 1.33 1.50 1.20 1.16 1.10 1.05 EBITDA 1.00 0.50 0.00 FY 11 FY 12 FY 13 FY 14 H1 15 Considerable headroom The Equipment Rental Specialists

Supplementary schedules 19 Agenda The Equipment Rental Specialists

Cash flow 20 Agenda 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) The Equipment Rental Specialists

Effective rate of tax 21 Agenda H1 H1 2015 2014 % % 21.0 Standard rate 23.0 Impact of tax rate change on deferred tax - (4.4) 0.4 Permanent disallowables 0.5 (0.7) Chattels (1.3) Prior year adjustments - (0.4) 0.5 Non qualifying depreciation 0.6 21.2 Effective rate 18.0 The Equipment Rental Specialists

Net working capital 22 Agenda 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 The Equipment Rental Specialists

Group history – 1954 to date 23 2002-2004 2011 Shoring expansion Mainland Europe - through acquisition Groundforce of Mechplant, Trenchshore & 2006 Eve Shorco Acquisition of Bukom Oilfield Services (Airpac Bukom formed ) 2001 Hire Station formed 1954 Vibratory Roller & Plant Hire through merger of 5 regional tool (Northern) Limited founded 1980 businesses Shoring division 2014 established 2006 1996 Tool Hire: 1973 2014 Cannon Tool Hire Floated on main market 2010 acquired in 1996 Vibroplant plc Vp plc Geographical expansion: 2005 Global (Airpac Bukom). Celebrates its 1982 Eire (Groundforce), TPA and 60 th Anniversary US powered access ESS Germany (TPA) business established acquired 2001 1954 Renamed Vp plc 2007 - 2009 1973 Continuing growth in 1990 1980 2000 specialist areas via UK Forks acquisitions of MEP and division U Mole created 1975 1990 First move into Groundforce specialist 1997 acquired from plant - Airpac Rail: Torrent SGB Trackside acquired 1996 Exit from USA; UK specialist businesses expanded Revenue 1970: £2m 1980: £14m 1990: £70m 2000: £55m 2010: £129m 2013: £167m 2014: £183m The Equipment Rental Specialists

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 The Equipment Rental Specialists