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