Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental...
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Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Final Results for the year ended 31 March
Presentation to Carillion The Equipment Rental Specialists 9 th
June 2010 The Equipment Rental Specialists Vp plc Final Results for
the year ended 31 March 2011
Group Thumbnail Rental specialist serving diverse, niche end
markets Established for over 50 years 6 operating divisions 1500+
employees; 100m asset base; 140m+ revenues 137m fleet investment in
last 5 years Mainly UK based with some European exposure
(Groundforce/TPA); global presence through Airpac Bukom
Slide 5
Strengths/Characteristics of Vp Resilient diverse markets
market leading positions specialist Consistent quality returns,
even in downturn Financial strong balance sheet, positive cash
generation Sustainable we take a long term view
Slide 6
Operational review
Slide 7
Resilient business performance Solid profit - ahead of market
expectations Little overall improvement in market conditions
Revenue growth Double digit operating margins Prior year cost
actions effective Strong cash generation Borrowings reduced by 7.8m
Fleet investment increased to 24.2m (74%) Fleet sales 7.2m,
generating profits of 2.3m Results endorse the quality of our
business model
Slide 8
Revenue and Operating Profit trends Revenue (m) Operating
Profit (m)
Slide 9
Group structure The Equipment Rental Specialists
Slide 10
Divisional overview All divisions profitable Strongly cash
generative Positives UK Forks and Torrent Trackside profit recovery
Network Rail 5 year contract wins Telehandler fleet acquisition
with sole supply agreement Fleet investment increasing as fresh
opportunities secured Negatives Rate pressures but improving
outlook in second half Generally upbeat finish to the year
Slide 11
Business performance
Slide 12
Capital expenditure
Slide 13
Market diversity
Slide 14
Operational outlook New financial year has started well
Business plans assume stable market conditions Breadth of markets
will remain a key asset Investment in rental fleet expected to
continue at enhanced levels The Groups excellent financial health
provides competitive advantage We remain optimistic about future
prospects
Slide 15
Financial review
Slide 16
Financial highlights solid profit performance
Slide 17
Earnings and dividend per share
Slide 18
Robust balance sheet
Slide 19
Fleet size and profile balanced with demand million
Modest gearing, comfortably within covenants Net debt
Underlying gearing Interest cover (12 months) Net debt / EBITDA (12
months)
Slide 24
Bank facilities being refreshed
Slide 25
Conclusion
Slide 26
Strengths and strategy
Slide 27
Presentation to Carillion The Equipment Rental Specialists 9 th
June 2010 The Equipment Rental Specialists Vp plc Final Results for
the year ended 31 March 2011
Slide 28
Supplementary schedules
Slide 29
Net working capital
Slide 30
Shareholder value
Slide 31
Effective rate of tax
Slide 32
Shareholder return
Slide 33
Quality returns Operating Margin (%)Return on Average Capital
Employed (%) Earnings per share (pence)Dividend per share
(pence)
Slide 34
1954 1990 2010 2006 1973 1980 Group history Turnover1970:
2m1980: 14m1990: 70m2000: 55m2010: 134m2011: 141m
Slide 35
Europes market leader in portable roadways: Operations based in
UK, Republic of Ireland and Germany Largest portable roadway fleet
in UK Skilled installation of bespoke roadway and fencing solutions
Markets: Transmission, outdoor events, rail, construction - UK and
Europe Opportunities: Regulated transmission programme, new
products and European growth
Slide 36
National hire of telescopic handlers/rough terrain forklifts :
Only national telehandler specialist Fleet of c.1100 machines
Centralised hire desk cost effective with consistent quality of
service and administration Strategically located distribution
network Flexible model allows up/downsizing of fleet according to
market conditions Markets: General construction, housebuild and
industry Opportunities: Housebuilding improvement, market share
growth
Slide 37
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
Slide 38
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 Easiform
concrete formwork Markets: Civil engineering (including AMP),
construction and housebuilding Opportunities: AMP 5, European
growth and export sales
Slide 39
Provision of rail specific light plant, trackside lighting and
skilled trackside personnel: Comprehensive depot network providing
national coverage 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 Markets: Maintenance and
renewals projects on national rail network, London Underground
Opportunities: Network Rail maintenance contract, LUL, Crossrail,
renewal activity
Slide 40
International rental of high pressure air compressors, steam
generators and specialist equipment supported by skilled engineers:
Provision of air and steam solutions to the international oil and
gas sector Rental assignments in more than 60 countries
International network of six service and distribution facilities
located in the UK (Aberdeen and Great Yarmouth), Singapore,
Australia, Middle East and Latin America Markets: Well testing, rig
maintenance, gas transfer, LNG Opportunities: Recovery in well test
market, new applications for equipment and greater penetration of
under represented geographic regions
