Speedy Hire Plc · LSE:SDY
Speedy Hire — H1 FY2016 Earnings Presentation
20 slides from Speedy Hire's earnings presentation, Nov 10, 2015
Slide 1: Interim Results for the period ending 30th September 2015
10th Nov 2015 Interim Results for the period ending 30th September 2015 Russell Down, Chief Executive
Slide 2: Overview
Overview Challenging and disappointing start to the year Review identified: • Poor execution of business improvement programmes • Lack of focus on SME customers • Lack of ownership, empowerment and accountability Management changes and remedial actions put in place Full benefits will be realised ove
Slide 3: Financial Update
10th Nov 2015 Financial Update
Slide 4: Summary Financials
Summary Financials H1 H1 FY2016 FY2015 FY2015 £m £m £m Revenue* 165.0 189.3 375.0 Gross profit* 94.1 110.7 217.1 Revenue £165.0m (H1 15: £189.3m). Decline in core hire revenue and planned disposals in the Gross margin % 57.0% 58.5% 57.9% period EBITDA* 25.6 37.5 72.7 Gross margins affected by non-hi
Slide 5: Segmental Analysis – UK & Ireland
Segmental Analysis – UK & Ireland H1 H1 FY2016 FY2015 FY2015 £m £m £m Revenue 155.2 176.3 351.3 Revenue £155.2m (H1 15: £176.3m) Gross margin % 59.3% 61.8% 61.0% Core hire revenues fell by 11.6%. Planned disposal revenue amounted to £2.1m (H1 15: £6.0m) EBITDA* 26.6 40.7 78.0 EBITDA margin %* 17.1%
Slide 6: Segmental Analysis – International
Segmental Analysis – International H1 H1 FY2016 FY2015 FY2015 £m £m £m Prior year comparatives include spot hire business Revenue* 9.8 13.0 23.7 now disposed of/discontinued. Remaining business services national oil and gas clients in the UAE EBITDA* 1.3 (0.3) (0.5) EBITDA margin %* 13.3% (2.3%) (2.
Slide 7: Balance Sheet
Balance Sheet 30 30 31 Sept Sept March 2015 2014 2015 £m £m £m Intangibles & JV 52.2 54.4 53.8 Property, plant and equipment Property, plant and equipment 267.4 277.5 253.3 • Hire fleet £224.9m (Sep14: £242.3m) Inventory reflecting asset disposals in the international 8.2 10.3 9.5 business Trade and
Slide 8: Cash Flow
Cash Flow H1 H1 FY2016 FY2015 FY2015 £m £m £m Adjusted operating profit 4.5 13.8 26.4 Cash generated from operations £13.0m Depreciation 21.1 23.7 46.3 (Sep14: cash absorbed £2.0m) EBITDA 25.6 37.5 72.7 Working capital movements due to: Exceptional costs (14.2) (3.4) (16.8) • £18.7m decrease in debt
Slide 9: Net Debt Reconciliation
Net Debt Reconciliation Financial period ended 30 September 2015 2014 £m £m Net debt 1 April 105.3 84.4 Net debt £102.6m (Sep14: £104.4m) Cash from operations (13.0) 2.0 Total facility £180m, subject to available Interest Paid 2.6 5.0 asset base and debtor book Tax Paid 0.6 2.7 Facility headroom ava
Slide 10: KPIs
KPIs H1 H1 FY2016 FY2015 FY2015 £m £m £m PBT* £2.0m £10.3m £21.9m Debtor days – UK & Ireland 72.6 76.8 72.6 Net debt £102.6m £104.4m £105.3m Net debt: EBITDA (rolling 12 months)* 1.69 1.38 1.45 Shareholders’ funds £219.8m £241.6m £234.0m Net assets per share 42.10p 46.41p 44.84p ROCE (rolling 12 mon
Slide 11: Business Update
10th Nov 2015 Business Update
Slide 12: Challenging first half
Challenging first half Challenging first half: H2 focus: Lack of focus on SME customers Sales function aligned to better service both Strategic and SME customers Unavailability of stock Redistribution of assets improving asset availability Poor execution of IT and MI system Improved MI through syste
Slide 13: Customer focussed strategy
Customer focussed strategy Improving customer service Differentiation and innovation Cultivating strong client relationships Underpinned by: • An empowered but accountable structure • A commitment to keeping our people and customers safe 13 November 15
Slide 14: Improving Customer Service
Improving Customer Service Customer experience: • Customer service charter • Strategic customer SLA • SME customer initiatives Reliable • Right assets, right place, right time Easy to do business with • Multi channel – depot, delivery, online 14 November 15
Slide 15: Differentiation and Innovation
Differentiation and Innovation Systems improving efficiency and the customer experience • Accurate real-time MI data enabling better decision making Product innovation demanded by our customers • £40m in new hire equipment that meet customers’ needs • 6,000 new products added to the fleet since July
Slide 16: Relationships
Relationships Sales function aligned to better serve both Strategic and SME customers CRM being implemented across business Better anticipation of our customers’ needs in real-time and based on credible information New contract wins, and a strong bid pipeline Key account plans being implemented 16
Slide 17: New Lean Structure
New Lean Structure Restructured to improve accountability A new empowered management structure Strategic and National Sales • Flatter hierarchy – removal of layers • P&L ownership TLS • Framework for local decision making TLS TLS North Scotland Power Rail South & Ireland Plant Regional Sales | Engin
Slide 18: Sales Focussed Structure
Sales Focussed Structure A structure and network to serve all of our customers SME accounts now regionally managed Strategic c.50% Centrally and Revenue Managed National Share c.50% Regionally SME Revenue Managed Share 18 November 15
Slide 19: Outlook
Outlook Early days in the Group’s recovery Remedial actions addressing legacy issues Full benefits to be realised over the medium term Expecting to see an improvement in the second half of the year Whilst our markets remain competitive, Speedy remains a fundamentally good business with potential to
Slide 20: Questions
Questions November 15