presentation to carillion/media/files/v/vp-plc/company...2016/03/31 · 2016 2015 basic eps 57.5p...

The Equipment Rental Specialists

1

Presentation to Carillion


9th June 2010



2

OPERATIONAL

REVIEW

Agenda

SUMMARY

FINANCIAL

REVIEW


3

STRATEGIC AIM HOW WE DELIVER WHERE FROM

• To generate

sustainable value

creation for

shareholders

• Utilising our

expertise in asset

management

• Exceeding

customer

expectations

• Maintaining and

leveraging our

financial strength

• Retaining and

attracting the best

people

• Serving diverse

markets in the UK

and overseas

Our strategy


4

• Record profits – 11%

ahead of prior year

• 2% revenue growth

• Operating margins

further improved to

15.3%

• Return on average

capital employed -

16.3%

• Strong cash

generation – EBITDA

£59.3m

• Maintained

investment in rental

fleet - £45.9m

• 3 successful

acquisitions :

Test & Measurement

Higher Access

TR Pty

Another year of substantial progress


5

(£m)

161.5 167.0

183.1

205.6 208.7

0

50

100

150

200

250

2012 2013 2014 2015 2016

16.0 17.4

20.1

26.8

29.8

0

5

10

15

20

25

30

2012 2013 2014 2015 2016

(£m)

Revenue Profit before tax and amortisation

Consistent long term trend


6

9.9% 10.4%

11.0%

13.0%

14.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2012 2013 2014 2015 2016

Quality growth

Profit margin


7

OPERATIONAL REVIEW


8

Infrastructure

46%

Other

6% House

building

11%

Oil & Gas

12%

Construction

25%

Markets – construction up, oil and gas down

Infrastructure

44%

Construction

29%

Oil & Gas

9%

House

building

12%

Other

6%

2015/16 2014/15


9

Market segment Revenue Growth/

decline on

prior year 2016

£m

2015

£m

Infrastructure* 92.1 94.7 -3%

Construction 60.0 50.5 +19%

Housebuilding 25.7 22.1 +16%

Oil & Gas 19.7 25.2 -22%

Other 11.2 13.1 -13%

Total 208.7 205.6 +2%

*Utilities, Rail, Transmission and Facilities Management

Market dynamics

• Infrastructure flat –

Rail positive / Water &

Transmission subdued

• Construction strong –

repair & maintenance / fit out

• Housebuild – further growth

• Oil & Gas – challenging


10

Revenues PBITA

2016

£m

2015

£m

2016

£m

2015

£m

20.0 18.2 5.2 4.0 Housebuild and construction

45.0 44.4 9.6 8.9 Major projects support

15.2 21.5 1.2 2.8 Severe drop in demand

82.5 77.0 11.5 8.7 Growth in all areas

13.5 14.6 1.0 1.0 UK improved, Germany weak

32.5 29.9 3.4 3.4 Good demand, margin pressure

TOTAL 208.7 205.6 31.9 28.8

Operating margin 15.3% 14.0% Revenue quality improved further

Business performance


11

2016

£m

2015

£m

11.1 11.2 Strong product investment

6.5 5.7 Fleet renewal

1.4 5.3 Market demand

17.4 20.1 Strong demand, product availability

4.3 2.3 New products

5.2 4.7 New growth opportunities

Total fleet capex 45.9 49.3

Disposal proceeds (17.2) (12.0)

Net expenditure 28.7 37.3

Capital investment in fleet


12

Acquisitions Test &

Measurement

(UK)

Higher Access

(UK)

TR Group Pty

(Australia,

Malaysia,

New Zealand)

• October 2015

• £3.95 million

• Instrumentation and

testing equipment

rental

• March 2016

• £4.1 million

• Specialist tracked

access platforms

• April 2016 (post y/e)

• A$17.4 million

• Test & measurement,

communications and

audio visual rental


13

Outlook

● Infrastructure, housebuild and construction to remain supportive

● Oil and gas a challenge, with recovery expected in medium term

● Fresh contribution from new acquisitions

● Opportunity remains in both the UK and overseas markets

● New trading year has started well

● We look forward to another year of progress


14

FINANCIAL REVIEW


15

2016

£m

2015

£m

Revenue

208.7

205.6

+2%

EBITDA 59.3 53.8 +10%

Depreciation (27.4) (25.0) +10%

EBITA 31.9 28.8 +11%

Interest (2.1) (2.0)

Profit before tax and amortisation 29.8 26.8 +11%

Net margin 14.3% 13.0%

Financial highlights–strong performance


16

2016 2015

Basic EPS 57.5p 51.0p +13%

Basic EPS (pre amortisation) 62.2p 54.5p +14%

Profit before tax and amortisation £29.8m £26.8m +11%

Weighted average number shares 38.9m 38.9

Effective tax rate 18.6% 20.8%

Earnings per share – 14% increase


17

Dividend per share (pence)

11.4 12.3

14.0

16.5

18.9

6

8

10

12

14

16

18

20

22

2012 2013 2014 2015 2016

2016 2015

EPS pre amortisation 62.2p 54.5p +14%

Full year dividend per share 18.85p 16.5p +14%

Dividend cover 3.3x 3.3x -

Full year dividend - 14% increase


18

RO

AC

E %

13.0 13.3 13.5

16.2 16.3

6

7

8

9

10

11

12

13

14

15

16

17

2012 2013 2014 2015 2016

*Average capital employed up by £18.7m to £196.0m

Estimated

WACC

ROACE progression


19

2016

£m

2015

£m

Property, plant and equipment

167.2

147.8

Fleet NBV £147.2m up £15.6m

Intangible assets/goodwill 46.4 43.4

Net working capital (2.3) (9.3) Debtor days down to 56 from 58

Pension asset 1.5 1.1

Deferred tax liability (5.3) (4.4)

Net debt (86.1) (66.8)

Net assets 121.4 111.8

Net assets per share pence 302 278

Strong balance sheet


20

2016

£m

2015

£m

EBITDA 59.3 53.8

Cash from operations 47.9 54.5

Capital expenditure (50.2) (52.9)

Proceeds from disposals 17.2 12.0

Interest and tax (6.9) (4.9)

Acquisitions (7.1) (5.4)

Dividends (6.6) (6.0)

Other (ESOT shares) (10.5) (11.1)

Cash movement (16.2) (13.8)

Finance leases acquired (3.1) -

Change net debt (19.3) (13.8)

Strong cash generation


21

Facilities

2016

£m

Net Debt

2016

£m

Net Debt

2015

£m

Facilities expiring May 2020 45.0

Facilities expiring October 2017 50.0

Total revolving credit facilities 95.0 88.0 72.0

Bank overdraft 5.0 - -

Bank balances (4.5) (5.2)

Finance leases 2.6 2.6 -

Total 102.6 86.1 66.8

● New £20m facility expiring May 2020 drawn down April 2016

● Finance leases acquired with Higher Access

Net debt and facilities - headroom


22

7.30 8.00

12.30

14.20 15.24

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

FY 12 FY 13 FY 14 FY 15 FY 16

EBITA

Interest

Cover

1.05 1.10 1.20 1.24 1.45

0.0

0.5

1.0

1.5

2.0

2.5

3.0

FY 12 FY 13 FY 14 FY 15 FY 16

Net Debt / EBITDA

Less than 2.5 times

Greater than 3 times

Significant headroom against covenants


23

Any Questions?


24

SUPPLEMENTARY

SCHEDULES


25

2016

%

2015

%

Standard rate 20.0 21.0

Impact of tax rate change (1.3) -

Permanent disallowables 0.9 0.4

Chattels (1.8) (0.9)

Prior year adjustments 0.1 0.1

Non qualifying depreciation 0.7 0.4

Overseas tax rate 0.1 0.2

Other (0.1) (0.4)

Effective rate 18.6 20.8

Effective rate of tax - reconciliation


26

1954 Vibratory Roller

& Plant Hire

(Northern)

Limited founded

Group history – 1954 to date

1973 Floated on

main market

Vibroplant plc

1975 First move into

specialist plant

Airpac

1980 Shoring division

established

1982 US powered

access business

established 1990

Groundforce

Acquired from SGB

1996 Cannon Tool Hire

acquired

1996 Exit from USA

UK specialist

businesses expanded

1997 Rail:

Torrent Trackside

acquired

2000 UK Forks

division created

2001 Hire Station formed

via merger of 5 regional

tool businesses 2001 Renamed

Vp plc

2002 - 2004 Shoring expansion via

acquisition of Trenchshore,

Eve Shorco, Mechplant

2005 TPA and ESS

acquired

2006 Acquisition of Bukom Oilfield Services:

Airpac Bukom formed

2010 Geographical expansion:

Global (Airpac Bukcom)

Eire (Groundforce)

Germany (TPA)

2011 Mainland Europe:

Groundforce

2014 Vp celebrates its

60th Anniversary

2015 Acquisition of

Test & Measurement 2016 Acquisition of:

Higher Access and

TR Pty Ld


27

Rough terrain material

handling equipment:

Markets: Opportunities:

● Only UK national

telehandler rental

specialist

● Fleet of c.1700

machines

● UK market leader in

tracked access

platform rental

● Housebuild

● Construction

● Industry

● UK

● Housebuilding

● Construction

recovery

● New products


28

Excavation support

systems and

specialist products:


● Groundforce has the

largest excavation

support fleet in the

UK and Ireland

● Water, civil

engineering and

construction

● UK, mainland

Europe and Ireland

● Infrastructure

- AMP programme

● Construction

● Europe


29

Equipment and service

providers to the

international oil and

gas exploration and

development markets:


● Global network of

service and distribution

facilities located in the

UK (Aberdeen and

Great Yarmouth),

Singapore, Australia,

Middle East and Latin

America

● Well testing

● Rig maintenance

● Gas transfer

● LNG

● International

● Leveraging global

network via regional

hubs

● Market recovery


30

Tool hire and specialist

products:


● Hire Station

Local tool hire

branches supported by

national call centre

● ESS Safeforce

- safety equipment,

confined space

training and test and

measurement

● MEP

- press fitting,

electrofusion and low

level access

● Construction

● Industry

● Civil engineering

● Housebuild

● DIY

● UK, Ireland,

Netherlands

● Specialist products

● Construction sector

● Market share growth


31

Infrastructure

equipment and

services for the

railway renewals and

maintenance industry:


● 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

● Maintenance and

renewals projects on

national rail network,

London

Underground and

Network Rail

maintenance

contract

● UK only

● CP5

● Maintenance

● London

Underground


32

Portable roadway

access solutions:


● Operations in UK,

Republic of Ireland and

Germany

● Skilled installation of

bespoke roadways and

other associated

products

● Transmission

● Construction

● Rail

● Outdoor events

● UK, Germany,

Ireland, Austria

● Regulated

transmission

programme

● European growth

● New Products

presentation to carillion/media/files/v/vp-plc/company...2016/03/31 · 2016 2015 basic eps 57.5p...

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