Zigup PLC · LSE:ZIG
Zigup — Northgate — FY2012 Earnings Presentation
30 slides from Zigup's earnings presentation, June 2012
Slide 1: Northgate plc Preliminary Results
NORTHGATE plc Preliminary Results June 2012 1 Interim results six months ended 31 October 2009
Slide 2: Agenda
Agenda • Group summary Bob Mackenzie • Operational review – UK Bob Contreras – Spain Fernando Cogollos • Financial performance Chris Muir • Outlook Bob Contreras 2 Interim results six months ended 31 October 2009
Slide 3: Bob Mackenzie, Chairman
Bob Mackenzie Chairman 3 Interim results six months ended 31 October 2009
Slide 4: Group summary
Group summary • Financial performance • UK operations • Spain operations • Dividend policy 4 Interim results six months ended 31 October 2009
Slide 5: Bob Contreras, Chief Executive
Bob Contreras Chief Executive 5 Interim results six months ended 31 October 2009
Slide 6: UK Operational Highlights
UK Operational Highlights • Restructuring of UK business • Underlying hire rate increase of over 4% • On hire reduction of 14% • Utilisation at 89% average • Used vehicle residual market remains strong • Fleet management wins • Improved ROCE from 15.3% to 16.5% 6 Interim results six months ended 31
Slide 7: UK Priorities
UK Priorities Business focused on growth in the medium term following restructuring Commercial • Investments in sales people and commercial initiatives • Training / marketing etc. Network Footprint • Geographic gaps mostly in south of England Fleet • Recent wins • Secures rental and binds customer t
Slide 8: Fernando Cogollos, Managing Director – Northgate Spain
Fernando Cogollos Managing Director – Northgate Spain 8 Interim results six months ended 31 October 2009
Slide 9: Spain Operational Highlights
Spain Operational Highlights • Utilisation at 90% average • Stable hire rates • Used vehicle residuals improved • Improved debtor management • On hire reduction of 14% • Improved ROCE from 9.0% to 9.9% 9 Interim results six months ended 31 October 2009
Slide 10: Spain Priorities
Spain Priorities Commercial • Resource increase by 20% • SME market Operations • Damage cost reduction and recovery • Workshop improvements Retail Sales • Van Monster penetration from 4% to 11% Cash flow • Asset optimisation generation • Debtor management 10 Interim results six months ended 31 Octob
Slide 11: Chris Muir, Group Finance Director
Chris Muir Group Finance Director 11 Interim results six months ended 31 October 2009
Slide 12: Group Financial Summary
Group Financial Summary 2012 2011 2010 PBT £59.7m £53.8m £36.5m EPS 31.5p 29.0p 26.8p Net tangible assets per share £2.65 £2.44 £2.11 Net Debt £371m £530m £598m Gearing 105% 163% 213% ROCE 13.1% 11.9% 8.4% Dividend (cover) 3.0p (10x) - - 12 Interim results six months ended 31 October 2009
Slide 13: Operating profit reconciliation
Operating profit reconciliation £m UK Spain Head Total Office 2011 Operating profit 73.6 36.6 (4.6) 105.6 2012 Operating profit 74.4 35.0 (4.2) 105.2 Variance 0.8 (1.6) 0.4 (0.4) Variances: - Disposal values 8.3 4.0 - 12.3 - Other (7.5) (5.6) 0.4 (12.7) 13 Interim results six months ended 31 October
Slide 14: UK operating profit
UK operating profit 80.0 3.6 78.0 76.0 8.3 74.0 74.4 (3.3) 74.4m 73.6 (13.1) 73.6m 72.0 70.0 £m 68.0 5.4 66.0 (0.1) 64.0 62.0 60.0 Depreciation Revenue 2011 2012 Payroll Vehicle disposals Overheads Other direct costs 14 Interim results six months ended 31 October 2009
Slide 15: Spain operating profit
Spain operating profit 45.0 1.0 4.7 42.7m 40.0 (25.0) (0.5) 40.8m 11.0 35.0 30.0 42.7 40.8 €m 6.9 25.0 20.0 15.0 Other direct costs Depreciation 2011 Payroll 2012 Revenue Vehicle disposals Overheads 15 Interim results six months ended 31 October 2009
Slide 16: Cash flow and net debt
Cash flow and net debt £m Net debt Opening net debt 1 May 2011 529.9 2012: £371m Cash flow (135.5) 2011: £530m Non-cash movements 6.8 2010: £598m Exchange movements (29.9) Gearing 2012: 105% Closing net debt 30 April 2012 371.3 2011: 163% Facilities headroom 275.7 2010: 213% 16 Interim results six m
Slide 17: Financial covenants
Financial covenants 3.00 3.00 Interest cover headroom = £17m Leverage headroom = £97m 2.50 2.50 2.00 2.00 1.50 1.50 1.00 1.00 0.50 0.50 1.92x 2.09x 2.40x 2.04x 1.68x 1.35x 0.00 0.00 2010 2011 2012 2010 2011 2012 400m 100% Loan to value headroom = £132m Net worth headroom = £99m 350m 90% 80% 300m 70%
Slide 18: Capital employed (April 12)
Capital employed (April 12) £m UK Spain Group Vehicles (hire and used) 395 246 641 Property 30 35 65 Other fixed assets 17 6 23 Trade and other debtors 59 43 102 Trade and other creditors (80) (14) (94) Capital employed 421 316 737 Net debt (231) (140) (371) Net assets 190 176 366 ROCE (FY12) 16.5%
Slide 19: UK Depreciation rates
UK Depreciation rates 1,200 1,000 Pre-impairment 800 600 400 PPU (£) 200 0 (200) (400) (600) Post-impairment (800) (1,000) Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 PPU (128) 123 164 54 (514) (716) (46) 687 774 727 785 1,041 • 2012 PPU at £893 • Expect marke
Slide 20: UK Depreciation rates - impact
UK Depreciation rates - impact Apr-12 Closing fleet 52,900 Closing cost £588m 2012 average rate 20.3% Revised rates 19.3% Holding period 42mths £m FY13 FY14 FY15 FY16 Depreciation 5.9 5.9 5.9 5.9 Profit on disposal (0.8) (2.5) (4.2) (5.9) Operating profit 5.1 3.4 1.7 - Year-on-year 5.1 (1.7) (1.7) (
Slide 21: Outlook
Outlook 21 Interim results six months ended 31 October 2009
Slide 22: Financial summary
Appendix 1 Financial summary £m 2012 2011 UK Spain Total Total Revenue 320.8 182.9 503.7 537.3 Operating profit (excluding vehicle disposals) 51.9 30.8 82.7 95.8 Vehicle disposals 22.5 4.2 26.7 14.4 Total operating profit 74.4 35.0 109.4 110.2 Corporate - - (4.2) (4.6) Group operating profit - - 105
Slide 23: Exceptional items
Appendix 2 Exceptional items £m April April 2012 2011 Restructuring costs - UK 5.4 3.0 Restructuring costs - Spain 1.5 2.6 Other (0.2) - Impairment of Spanish properties - 6.9 Exceptional administrative expenses 6.7 12.5 Impairment of intangible assets - 5.9 Exceptional interest expense 3.0 4.2 Tota
Slide 24: Facilities headroom
Appendix 3 Facilities headroom £m April 2012 Syndicated bank facilities 386.5 US loan notes 163.1 M&G loan 92.1 Other facilities 26.6 668.3 Closing net debt 371.3 Unamortised arrangement fees 21.3 392.6 Headroom 275.7 24 Interim results six months ended 31 October 2009
Slide 25: Facilities
Appendix 4 Facilities Committed facilities (£m) • Early repayment of 26 €59m bank facilities in 700 387 600 February 2012 500 319 319 • Scheduled repayments 400 of £113m in November 300 2012 163 • Total £668m Group 200 120 77 77 77 100 92 92 92 92 92 92 facilities 61 • Headroom £276m 0 FY12 FY13 FY1
Slide 26: Cost of borrowing
Appendix 5 Cost of borrowing £m April Rate 2012 Fixed rate borrowings US loan notes 163 8.8% M&G loan 92 8.2% Bank borrowings 124 5.1% 379 7.3% Floating rate bank borrowings 13 2.5% Arrangement fees (21) - Net debt 371 7.1% 26 Interim results six months ended 31 October 2009
Slide 27: Operating cash flows
Appendix 6 Operating cash flows £m 2012 2011 Operating profit (statutory) 94.5 82.6 Depreciation, amortisation and impairment 197.1 233.4 Working capital and other movements 21.3 15.4 Cash generated from operations 312.9 331.4 Net interest paid (38.3) (42.6) Corporation tax paid (2.6) (3.3) Cash flo
Slide 28: Group fleet capital expenditure
Appendix 7 Group fleet capital expenditure £m 2012 2011 Purchases UK 187.2 200.7 Spain 118.2 134.2 Disposals UK (136.3) (103.0) Spain (66.7) (75.3) Net fleet capex 102.4 156.6 Vehicles Purchases UK 16,500 18,900 Spain 11,900 13,400 28,400 32,300 Disposals UK (25,200) (18,900) Spain (16,800) (19,000)
Slide 29: UK KPIs
Appendix 8 UK KPIs April April 2012 2011 Fleet size (closing) 52,900 61,200 Utilisation (average) 89% 90% Closing vehicles on hire 46,400 53,800 Revenue per vehicle p.a. £6,026 £5,858 Operating margin 23.2% 22.0% Headcount (closing) 1,869 2,073 PPU £893 £755 ROCE 16.5% 15.3% 29 Interim results six m
Slide 30: Spain KPIs
Appendix 9 Spain KPIs April April 2012 2011 Fleet size (closing) 38,400 43,500 Utilisation (average) 90% 91% Closing vehicles on hire 34,000 39,400 Revenue per vehicle p.a. €5,685 €5,742 Operating margin 19.1% 18.0% Headcount (closing) 915 936 PPU €293 €13 ROCE 9.9% 9.0% 30 Interim results six month