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

Presentation to Carillion

The Equipment Rental Specialists

9th June 2010

The Equipment Rental Specialists

Vp plc Interim Results for the six months ended 30 September 2014

• Results Summary

Agenda

1

• Operational Review
• Financial Review

The Equipment Rental Specialists

Results summary

2

The Equipment Rental Specialists

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

The Equipment Rental Specialists

• 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

The Equipment Rental Specialists

69.1 82.7 84.0 91.3 101.3 138.1 161.5 167.0 183.1 200.8

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

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

The Equipment Rental Specialists

Markets

Market Segments * Utilities, Rail, Transmission and Facilities Management

6

The Equipment Rental Specialists

Infrastructure Construction Other

H1 H1 Growth/ Market 2015 2014 decline Segment £m £m

• n 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

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The Equipment Rental Specialists

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

The Equipment Rental Specialists

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

The Equipment Rental Specialists

• 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

The Equipment Rental Specialists

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% The Equipment Rental Specialists

Earnings per share – 22% increase

12

The Equipment Rental Specialists 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 2 4 6 8 10 12 14 16 2010 2011 2012 2013 2014 H1 2015 Interim Dividend Full Year Dividend

The Equipment Rental Specialists

INCREASE PARTLY ADDRESSES IMBALANCE BETWEEN INTERIM AND FINAL

Average Capital Employed £m ROACE

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 £m ROACE

The Equipment Rental Specialists

Agenda

Strong balance sheet

15

The Equipment Rental Specialists 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

The Equipment Rental Specialists

Agenda

Bank facilities

17

The Equipment Rental Specialists

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

The Equipment Rental Specialists

Agenda

Supplementary schedules

19

The Equipment Rental Specialists

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)

The Equipment Rental Specialists

Agenda

Effective rate of tax

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The Equipment Rental Specialists 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

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The Equipment Rental Specialists

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

1954 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 1996 2001 Hire Station formed through merger of 5 regional tool businesses 2002-2004 Shoring expansion through acquisition

• f Mechplant,

Trenchshore & Eve Shorco 2006 Acquisition of Bukom Oilfield Services (Airpac Bukom formed) 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 2000 UK Forks division created 2001 Renamed Vp plc 2005 TPA and ESS acquired 2007 - 2009 Continuing growth in specialist areas via acquisitions of MEP and U Mole 2010 Geographical expansion: Global (Airpac Bukom). Eire (Groundforce), Germany (TPA)

1954 1973 1980 1990 2006

2011 Mainland Europe - Groundforce

2014

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

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

The Equipment Rental Specialists

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

The Equipment Rental Specialists

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

The Equipment Rental Specialists

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

The Equipment Rental Specialists

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

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The Equipment Rental Specialists