Transcript Slide 1
Vp plc Presentation Interim Results totheCarillion for six months ended 9th30 June 2010 September 2011 The Equipment Rental Specialists The Equipment Rental Specialists 1 Agenda ● Summary ● Operational review ● Financial review ● Conclusion Results Summary 2 H1 H1 2012 2011 Profit before tax and amortisation £10.4m £8.6m +21% Revenue £84.0m £71.1m +18% Earnings per share pre amortisation 19.4p 15.4p Total dividend per share 3.10p 3.10p Highlights – sector leading performance 3 Excellent profit and revenue growth in a challenging trading environment Significantly increased fleet investment Modest increase in borrowings – strong cash generation ROCE and net margin improved Diversity smooths impact of individual sector dynamics Revenue and operating profit trends 4 Operating Profit (£m) Revenue (£m) 30 25.4 25 23.3 18.6 20 17.0 16.5 16.3 15 10 11.6 5 0 2007 2008 2009 FY 2010 FY Actual Brewin Dolphin Forecast FY 2012 2011 2012 Group structure 5 Market diversity 6 Other Events Housebuilding Oil and Gas Construction Infrastructure Infrastructure Proportion of total Group revenue Total revenue in H1 - £84m 41% 27% £34.0m £22.4m 13% 6% 5% 8% £11.1m £5.4m £4.2m £6.9m Divisional overview 7 All divisions profitable Profit growth from UK Forks/Torrent Trackside/Airpac Bukom Increased capex - supporting growth opportunities Improved utilisation and pricing countering some supply cost inflation Quality returns – double digit margins, double digit ROCE Current year strength in Regulated Markets, Oil & Gas and Housebuild European expansion continues in TPA and Groundforce Financial strength enables the business to respond quickly Business performance 8 Revenues PBITA H1 H1 H1 H1 2012 2011 2012 2011 £m £m £m £m 17.3 15.6 +11% 3.5 3.5 0% 6.6 5.3 +25% 1.0 0.6 +67% Airpac Bukom 10.3 8.5 +21% 2.0 1.5 +33% Torrent Trackside 10.0 6.2 +61% 1.4 0.6 +133% TPA 10.5 9.3 +13% 2.2 2.1 +5% Hire Station 29.3 26.2 +12% 1.5 1.7 -12% TOTAL 84.0 71.1 +18% 11.6 10.0 +16% 13.8% 14.1% Groundforce UK Forks Operating Margin Fleet capital expenditure 9 H1 H1 Full Year 2012 2011 2011 £m £m £m Groundforce 2.6 1.7 3.8 UK Forks 3.2 1.1 4.4 Airpac Bukom 0.2 0.5 1.3 Torrent Trackside 1.2 1.2 2.9 TPA 4.0 0.9 1.5 Hire Station 4.7 3.5 10.3 Other capex 1.3 0.8 1.9 Total capex 17.2 9.7 26.1 3.5 4.1 7.2 13.7 5.6 18.9 Disposal proceeds Net expenditure Operational outlook Markets offer opportunity though general construction is expected to remain weak Quality of opportunity governs investment decision Overseas activities will continue to develop Macro challenges ongoing, but we are confident in our ability to maintain our strong track record 10 Financials 11 Highlights 12 H1 H1 Full Year 2012 2011 2011 Revenue £84.0m £71.1m £141.0m EBITDA £21.5m £19.2m £35.0m EBITA £11.6m £10.0m £16.5m Profit before tax, amortisation and prior year exceptional £10.4m £8.6m £13.8m Net margin 12.4% 12.1% 9.8% ROCE 13.1% 12.8% 12.3% Earnings and dividend per share 13 H1 H1 Full Year 2012 2011 2011 Basic EPS 19.4p 15.4p 26.1p Diluted EPS 18.6p 15.2p 25.9p Dividend per share 3.1p 3.1p 10.8p 22.3% 24.8% 20.0% Tax rate Quality returns 14 Operating margin (%) Return on Average Capital Employed (%) Earnings per share (pence) Dividend per share (pence) 21.6 15.4 9.6 2.0 March 2.3 September 2.8 3.1 Robust balance sheet 15 30 Sept 11 31 Mar 11 30 Sept 10 £m £m £m Property, plant and equipment 105.9 101.3 96.2 Intangible assets 39.3 39.6 40.2 Non current assets 145.2 140.9 136.4 Net working capital 2.1 0.6 2.1 Pension obligations - (0.2) (0.9) Deferred tax (8.5) (9.3) (9.3) Capital employed 138.8 132.0 128.3 Net debt (43.4) (40.5) (40.4) 95.4 91.5 87.9 60 65 67 Net assets Debtor days Operating cash flow 16 H1 H1 Full Year 2012 2011 2011 £m £m £m Operating profits 11.6 10.0 16.5 Depreciation 9.9 9.2 18.5 EBITDA 21.5 19.2 35.0 Changes in debtors/creditors/stock (4.5) (1.8) 1.6 Gross Capex (19.1) (9.9) (21.9) Proceeds from disposals 3.5 4.1 7.2 Profit on asset disposals (0.8) (1.3) (2.3) Interest (1.3) (1.4) (2.7) Tax (1.2) (0.4) (3.1) - - (4.5) Other (1.0) (0.6) (1.5) Cash movement (change in net debt) (2.9) 7.9 7.8 Dividends Modest gearing, comfortably within covenants Net debt Underlying gearing Interest cover (12 months) Net debt / EBITDA (12 months) 17 Bank facilities 18 30 Sept 31 Mar 2011 2011 £m £m Due to expire Sep '11 - 20 Due to expire May '13 35 35 Due to expire Aug '15 30 - 65 55 Overdraft facilities 5 10 Total facilities 70 65 Committed facilities 19 Vp qualities that will deliver further progress ● Resilient – market leading positions – diverse markets – specialist ● Consistent – quality returns, even in downturn ● Financial – positive cash generation – strong balance sheet ● Sustainable – consistently enhancing shareholder value 20 Presentation Supplementary Schedules to Carillion 9th June 2010 The Equipment Rental Specialists The Equipment Rental Specialists Net working capital 21 H1 H1 Full Year 2012 2011 2011 £m £m £m 5.9 4.1 5.4 31.5 27.1 28.7 7.5 4.3 4.6 Current assets 44.9 35.5 38.7 Trade creditors (17.7) (11.4) (18.8) Accruals and other creditors (25.1) (22.0) (19.3) Net working capital 2.1 2.1 0.6 Debtor days 60 67 65 Inventories Trade debtors Prepayments and other debtors Effective rate of tax 22 H1 H1 Full Year 2012 2011 Mar 2011 % % % Standard rate 26.0 28.0 28.0 Permanent disallowables 1.0 1.4 0.8 Chattels (1.5) (1.4) (1.8) Share schemes (0.4) 1.1 (1.4) - (0.5) (0.8) (3.7) (5.0) (6.4) Other 0.9 1.2 1.6 Effective rate 22.3 24.8 20.0 Prior year adjustments Rate change Group history – 1954 to date 2002-2004 Shoring expansion through acquisition of Mechplant, Trenchshore & Eve Shorco 1954 Vibratory Roller & Plant Hire (Northern) Limited founded 23 2006 Acquisition of Bukom Oilfield Services (Airpac Bukom formed) 2001 Hire Station formed through merger of 5 regional tool businesses 1980 Shoring division established 2011 1996 Tool Hire: Cannon Tool Hire acquired in 1996 1973 Floated on main market Vibroplant plc 2006 2005 TPA and ESS acquired 1982 US powered access business established 2010 Geographical expansion: Global (Airpac Bukom). Eire (Groundforce), Germany (TPA) 2001 Renamed Vp plc 1954 1973 1980 1975 First move into specialist 1990 Groundforce acquired from SGB 1980 2007 - 2009 Continuing growth in specialist areas via acquisitions of MEP and U Mole; and start up of Climate Hire, Easiform and Virtual Hire 2000 UK Forks division 1990 1997 Rail: Torrent Trackside acquired 1996 Exit from USA; specialist businesses expanded Turnover 1970: £2m 1980: £14m 1990: £70m 2000: £55m 2010: £134m 2011: £141m 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 – piling equipment ° Stopper Specialists – pipeline pressure testing ° Shorflo – pumps ° ‘U’ Mole – trenchless technology Markets: • Civil engineering (including regulated AMP programme), construction and housebuilding Opportunities: • AMP 5 • European growth 25 National hire of telescopic handlers/rough terrain forklifts: • Only UK national telehandler specialist • Fleet of c.1200 machines • Strategically located distribution network Markets: • General construction, housebuild and industry Opportunities: • Housebuilding improvement • Market share growth 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: • Recovery in well test market • • New applications Greater penetration of under represented geographic regions 27 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 Opportunities: • Network Rail maintenance contract • LUL, Crossrail, renewal activity 28 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, construction - UK and Europe Opportunities: • • • Regulated transmission programme New products European growth 29 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 and electrofusion equipment ° Climate Hire – heating and cooling products ° Virtual Hire – own brand partnerships, e.g. Homebase, Garden Centre Group Markets: • Construction, industry, civil engineering, housebuild, DIY Opportunities: • Specialist products • Market share growth