Slide 1: Interim Results for the period ended 30 September 2020
Interim Results for the period ended 30 September 2020 The Equipment Rental Specialist Resilient trading performance despite unique challenges, debt reduced significantly
Slide 2: Agenda
Agenda Highlights 1. Highlights Market and Trading Review 2. Market and Trading Review 3. Financial Review Financial Review Vp plc | The Equipment Rental Specialist | 2
Slide 3: Highlights
Highlights
Slide 4: Headline Numbers in H1
Headline Numbers in H1 Strategic Aim and Highlights • Profitable PBTA ROACE • Double digit ROACE £8.6m 10.3% Market and Trading Review • £41.1m reduction in debt • Special Dividend Net Debt Special Dividend • No Interim £118.7m 22.0p Financial Review Dividend Vp plc | The Equipment Rental Specialist
Slide 5: Strategic Aim and Highlights
Covid driven pause - long term progress Strategic Aim and Highlights Revenue Profit before tax, amortisation and exceptional items £millions £millions 450 50 46.8 47.1 400 382.8 45 362.9 40.6 40 Market and Trading Review 350 34.9 303.6 * 298.6 35 300 248.7 30 250 25 200 * 22.7 20 150 15 25.9 25.9 10
Slide 6: Challenging but improving trading period
Challenging but improving trading period Profitable in the six month period Infrastructure, Construction, Housebuilding and Oil & Gas all ‘open’ Robust lockdown response : - HS2, AMP7, CP6, Hinkley Point, - prioritising the safety of our employees Transmission (UK & Europe) - capex, recruitmen
Slide 7: Market and Trading Review
SACK POOK __ lew Revi ing Market and Trad ple
Slide 8: Key market dynamics
Key market dynamics Strategic Aim and Highlights Revenue Market segment H1 2021 H1 2020 Reduction on Market Exposure (£m) (£m) prior year Infrastructure* 40% 56.8 72.1 - 21% Market and Trading Review Construction 39% 54.8 74.3 - 26% Housebuilding 9% 12.3 16.8 - 27% Oil & Gas 7% 9.8 12.5 - 22% Other
Slide 9: Business performance – Group
Business performance – Group Strategic Aim and Highlights H1 2021 (£m) H1 2020 (£m) Revenue - 24% 142.1 186.6 Market and Trading Review PBITA - 62% 10.8 28.3 Operating margin 7.6% 15.2% Progressive recovery Costs / cash controlled Tough April / May Financial Review - Monthly profitability - Good deb
Slide 10: Business performance – UK
Business performance – UK Strategic Aim and Highlights H1 2021 (£m) H1 2020 (£m) Revenue 128.9 170.0 - 24% Market and Trading Review PBITA 9.7 27.2 - 65% Operating margin 7.5% 16.0% AMP7 (Water) Brandon Hire Station Quick recovery in Transmission strong online European Revenues & CP6 (Rail) Housebui
Slide 11: Business performance – International
Business performance – International Strategic Aim and Highlights H1 2021 (£m) H1 2020 (£m) Revenue 13.2 16.6 - 20% PBITA 0.9 1.1 - 18% Market and Trading Review Operating margin 6.8% 6.6% Oil and Gas markets disrupted by Covid 19 Severe lockdown in Australia travel issues leading to delays and New
Slide 12: Rental fleet investment
Rental fleet investment Strategic Aim and Highlights H1 2021 (£m) H1 2020 (£m) UK 13.1 21.8 International 1.5 4.8 Market and Trading Review Total fleet investment 14.6 26.6 Disposal proceeds (8.5) (10.8) Net expenditure on fleet 6.1 15.8 Capex levels restrained Surplus equipment Modern fleet, well i
Slide 13: Outlook – Recovery into 2021
Outlook – Recovery into 2021 Strategic Aim and Highlights Market and Trading Review Tentative stability in overall UK market International markets re-opened Strong UK infrastructure exposure is an Offshore oil & gas – short term weak, opportunity longer term improved Housebuilding stable a
Slide 14: Leveraging a resilient business structure
Leveraging a resilient business structure Strategic Aim and Highlights Proven and Highly Experienced resilient model Senior Management Market and Trading Review Long Term Focus Market diversity - Geographic on Service and Product Financial Review - Product & Service offer Excellence - End Markets Vp
Slide 15: Financial Review
pic Financial Review Torrent Tracksicic fent Trackside io
Slide 16: Financial highlights – recovery in Q2
Financial highlights – recovery in Q2 Strategic Aim and Highlights H1 2021 H1 2020 % FY 2020 £m £m change £m Revenue 142.1 186.6 - 24% 362.9 EBITDA 34.1 51.8 - 34% 98.1 Market and Trading Review Depreciation (23.3) (23.5) 0% (46.2) EBITA 10.8 28.3 - 62% 51.9 Interest (2.2) (2.4) (4.8) PBTA (and exce
Slide 17: Earnings per share and dividends
Earnings per share and dividends Strategic Aim and Highlights Dividend per share (pence) 35.0 H1 H1 22.0 2021 2020 30.0 19.2 Special dividend 22.0p - 25.0 16.0 Market and Trading Review Interim dividend - 8.45p 20.0 15.0 EPS adjusted * 17.4p 52.5p 10.0 * Pre amortisation and exceptionals 22.0 5.0 6.
Slide 18: ROACE – long term quality of earnings
ROACE – long term quality of earnings Strategic Aim and Highlights 20 18 16.0% 16 14.8% 14.5% 14.5% 14 Market and Trading Review 12 10.3% 10 8 WACC 6 4 2 Financial Review 0 FY 2017 FY 2018 FY 2019 FY 2020 H1 2021 Covid temporary impact Vp plc | The Equipment Rental Specialist | 18
Slide 19: Balance sheet - strength
Balance sheet - strength Strategic Aim and Highlights H1 2021 FY 2020 £m £m Hire Fleet 209.1 222.6 Other fixed assets 28.4 25.2 Market and Trading Review Intangible assets / goodwill 73.1 74.2 Working capital (16.2) 19.1 Other (7.8) (8.2) Net debt (118.7) (159.8) IFRS16 net (3.4) (3.2) Net assets 16
Slide 20: Exceptional items
Exceptional items H1 2021 H1 2020 FY 2020 £m £m £m Regulatory Review costs 11.1 - 0.8 Restructuring costs 1.7 0.7 0.7 Financing expenses 0.2 - - Total 13.0 0.7 1.5 CMA process on going since February 2017, no decision reached In accordance with IAS37 additional £10.9m provision, total £15.4m F
Slide 21: Strong focus on cash management
Strong focus on cash management Strategic Aim and Highlights H1 2021 H1 2020 FY 2020 £m £m £m £m EBITDA 34.6 53.0 98.8 Working capital 25.0 (21.3) (15.5) Profit on sale (3.6) (5.2) (8.9) Market and Trading Review Cash from operations 56.0 26.5 74.4 Net capital expenditure (10.2) (18.5) (33.3) Acquis
Slide 22: Effective cash collection – during pandemic
Effective cash collection – during pandemic Debtor Day trends H1 FY H1 68 2021 2020 2020 66 64 Debtor 61 62 66 days days days days 62 60 58 Bad debt 0.5% 0.8% 0.5% write off as 56 (£0.8m) (£2.9m) (£0.9m) % revenue 54 Mar-19 Sep-19 Mar-20 Sep-20 Vp plc | The Equipment Rental Specialist | 22
Slide 23: Net debt and facilities – headroom increased
Net debt and facilities – headroom increased Strategic Aim and Highlights H1 2021 FY 2020 £m £m Private placement matures Jan 2027 65.0 65.0 Market and Trading Review RCF matures December 2021 135.0 135.0 Total committed facilities 200.0 200.0 Overdraft 7.5 7.5 Actual borrowing net debt 118.7 159.6
Slide 24: Robust headroom against existing covenants
Robust headroom against existing covenants Strategic Aim and Highlights EBITA Interest Cover > 3 times Net Debt / EBITDA < 2.5 times 20.0 3.0 18.0 2.5 16.0 14.0 2.0 Market and Trading Review 12.0 10.0 1.5 13.00 11.21 11.35 10.58 8.0 1.39 1.89 1.62 1.65 1.53 1.0 6.0 6.95 4.0 0.5 2.0 0.0 0.0 Financial
Slide 25: Supplementary Schedules
Supplementary Schedules
Slide 26: Net Working Capital
Net Working Capital H1 2021 FY 2020 Cashflow movement £m £m £m Inventories 7.8 9.1 1.3 Trade and other receivables 66.3 84.3 18.0 Trade creditors, accruals, other (91.0) (75.2) 15.8 Net working capital (16.9) 18.2 35.1 Exceptionals (12.7) Capital creditors movement 2.5 Other cashflow 0.1 Working cap
Slide 27: IFRS16 impact on profit
IFRS16 impact on profit H1 2021 H1 2021 H1 2021 H1 2020 excluding IFRS IFRS impact Reported Reported EBITDA £m 34.1 13.3 47.4 64.8 PBITA (and exceptionals) £m 10.8 1.6 12.4 30.2 Financial expense £m (2.2) (1.7) (3.9) (4.5) PBTA (and exceptionals) £m 8.6 (0.1) 8.5 25.7 EPS (adjusted) pence 17.40 (0.5
Slide 28: Group history – 1954 to date
Group history – 1954 to date 2019 Acquisition of 2016 Sandhurst Acquisition of Higher Access 2014 and TR Pty 2007 Vp celebrates (Australia) MEP 60 years acquired 2005 2000 TPA and ESS UK Forks acquired 1996 division Cannon created Tool Hire acquired 2017 1982 Exit from Acquisition US powered USA of
Slide 29: Divisions
Divisions UK Rough terrain material handling equipment and tracked access platforms Excavation support systems and specialist products Portable roadway and temporary access solutions Tool and equipment hire Specialist safety, survey, communications and test measurement Mechanical, electrical and low
Slide 30: Central House, Beckwith Knowle, Otley Road, Harrogate
Central House, Beckwith Knowle Otley Road, Harrogate North Yorkshire, HG3 1UD T 01423 533400 www.vpplc.com Vp plc Company Number 481833