Zigup PLC · LSE:ZIG
Zigup — Northgate — FY2013 Earnings Presentation
28 slides from Zigup's earnings presentation, June 2013
Slide 1: Positioned for growth: Preliminary results for the year ended 30 April 2013
Northgate plc Positioned for growth Preliminary results for the year ended 30 April 2013 Northgate plc Preliminary results Year ended 30 April 2013 June 2013
Slide 2: Agenda
Agenda • Group summary Bob Mackenzie • Financial review Chris Muir • Operational review – UK Bob Contreras – Spain Fernando Cogollos • Outlook Bob Contreras 2
Slide 3: Group summary
Bob Mackenzie: Chairman Group summary Northgate plc Preliminary results Year ended 30 April 2013 June 2013
Slide 4: Progress to date
Progress to date Net debt (£m) and gearing • ROCE improved from 5.8% £900m 600% to 11.8% since FY09 571% £800m 500% £700m • PBT £49.5m compared to £600m 400% FY09 £27.5m £500m 300% £400m 213% • £523m reduction in net debt £300m 163% 200% over same period £200m 105% 102% 100% £100m • Dividend reintro
Slide 5: Financial performance
Chris Muir: Group Finance Director Financial performance Northgate plc Preliminary results Year ended 30 April 2013 June 2013
Slide 6: Group financial summary
Group financial summary Operating profit Profit before tax EPS £105.2m £86.4m £59.7m £49.5m 31.5p 29.2p FY12 FY13 FY12 FY13 FY12 FY13 Dividend (full year) Net debt ROCE 7.3p £363m 11.8% FY12 – 3.0p Apr-12 - £371m FY12 – 13.1% 6
Slide 7: UK operating profit
UK operating profit The UK operating margin was 22.1% following a 3,300 decrease in vehicles on hire £m 74.4m (29.7) 19.6 3.0 (0.5) 64.2m (0.9) (1.7) Depreciation Other direct disposals Revenue FY12 Overheads FY13 Payroll Vehicle costs 7
Slide 8: Spain operating profit
Spain operating profit The economic backdrop in Spain continues to present very difficult trading conditions €m (29.0) 40.8m 3.0 1.2 0.5 30.8m 5.2 9.1 Depreciation Revenue Other direct disposals Overheads Payroll FY12 FY13 Vehicle costs 8
Slide 9: Refinancing
Refinancing £m Before* After Rate** Maturity Rate** Maturity 236 1.1% 1.0% 80 139 4.3% Sep-14 8 3.0% Nov-13 355 2.8% Jun-17 120 8.9% Dec-16 96 8.2% Apr-19 3.0% Nov-13 8 Headroom P&L cost £54.0m, cash outflow £39.1m Banks Other • Total facilities £599m costing 7.0% • Total facilities £443m costing 2.
Slide 10: Financial covenants
Financial covenants Interest cover Leverage Loan to value 3.00 2.00 70% 2.50 60% 2.00 1.50 50% 1.50 40% 1.00 30% 1.00 20% 0.50 0.50 2.4x 2.7x 1.3x 1.5x 10% 53% 50% 0.00 0.00 0% Apr-12 Apr-13 Apr-12 Apr-13 Apr-12 Apr-13 • EBIT headroom £22m • EBITDA headroom • Loan headroom £149m • Threshold 2.0x £66
Slide 11: Cash flow and net debt
Cash flow and net debt Net debt £m Apr-13 £363m Opening net debt (1 May-12) 371.3 Apr-12 £371m Cash flow (before refinancing) (84.6) Apr-11 £530m Refinancing cash outflows 39.1 Other non-cash movements 17.1 Gearing Apr-13 102% Exchange movements 19.8 Apr-12 105% Closing net debt (30 Apr-13) 362.7 Ap
Slide 12: Operational review: UK
Bob Contreras: Chief Executive Operational review: UK Northgate plc Preliminary results Year ended 30 April 2013 June 2013
Slide 13: UK Operational Highlights
UK Operational Highlights Vehicles on hire Utilisation Revenue p/v -3,300 88% +2% since April 2012 (2012 – 89%) compared to 2012 Vehicle sales ROCE Commercial 20,700 14.8% 3 new sites at improved values (2012 – 16.5%) opened in the year Focus on driving growth in the UK 13
Slide 14: Driving growth in the UK
Driving growth in the UK Network Commercial Vehicle Sales Expansion • Market share c20% in • 3 new branches opened • Largest retailer of UK fragmented market and on plan in Q4 FY13 used LCVs • Regional Sales team • 6-8 openings planned in • New defleet centres in enlarged London area FY14 2013 will
Slide 15: Operational review: Spain
Fernando Cogollos: Managing Director Northgate Spain Operational review: Spain Northgate plc Preliminary results Year ended 30 April 2013 June 2013
Slide 16: Spain Operational Highlights
Spain Operational Highlights Vehicles on hire Revenue p/v Utilisation -1,900 -1% 90% since April 2012 compared to 2012 (2012 – 90%) Vehicle sales Bad debt charge ROCE 11,200 -€3.1m 8.4% at improved values compared to FY12 (2012 – 9.9%) Actions being taken to improve ROCE 16
Slide 17: Actions to improve ROCE
Actions to improve ROCE Cash flow Commercial Operations Retail sales generation • Reinforcing pricing • Workshop efficiency • Improved • €64m cash flow for recharging of programme ongoing maintenance regime generated damage in excess of supplies more fair usage • Age out vehicles vehicles to retail
Slide 18: Outlook
Bob Contreras: Chief Executive Outlook Northgate plc Preliminary results Year ended 30 April 2013 June 2013
Slide 19: Outlook
Outlook Build on commercial improvement and branch UK expansion to drive rental growth Continuation of strategy of cash generation and Spain actions to increase ROCE Move towards a normalised dividend cover in Dividend FY14 UK provides medium term growth opportunity Outlook whilst market conditions
Slide 20: Questions
Questions N@RTHGATE 20
Slide 21: Financial summary
Appendix 1 Financial summary £m April 2013 April 2012 UK Spain Total Total Revenue 291.1 150.8 441.9 503.7 Operating profit (excluding vehicle disposals) 43.4 20.2 63.6 82.7 Vehicle disposals 20.8 5.0 25.8 26.7 Total operating profit 64.2 25.2 89.4 109.4 Corporate - - (3.0) (4.2) Group operating pro
Slide 22: Capital employed (April 13)
Appendix 2 Capital employed (April 13) £m UK Spain Group Vehicles (hire and used) 383 221 604 Property 31 37 68 Other fixed assets 17 5 22 Trade and other debtors 59 34 93 Trade and other creditors (41) (16) (57) Capital employed 449 281 730 Net debt (238) (125) (363) Net assets 211 156 367 ROCE 14.
Slide 23: Exceptional items
Appendix 3 Exceptional items £m April 2013 April 2012 Restructuring costs – UK 2.1 5.4 Restructuring costs – Spain 0.8 1.5 Other 0.4 (0.2) Exceptional operating costs 3.3 6.7 Exceptional financing costs 54.0 3.0 Total exceptional items 57.3 9.7 23
Slide 24: Facilities and borrowing cost
Appendix 4 Facilities and borrowing cost £m April 2013 Syndicated bank facilities 428 Other facilities 15 443 rate* Fixed rate borrowings 231 2.9% Floating rate borrowings 132 2.7% Net debt 363 2.8% Headroom 80 * Weighted average borrowing rate inclusive of swaps taken out against new bank debt on 2
Slide 25: Operating cash flows
Appendix 5 Operating cash flows £m April 2013 April 2012 Operating profit (statutory) 79.5 94.5 Depreciation and amortisation 167.3 197.1 Working capital and other movements 11.6 21.3 Cash generated from operations 258.4 312.9 Net interest paid (31.3) (38.3) Corporation tax paid (16.8) (2.6) Cash fl
Slide 26: Group fleet capital expenditure
Appendix 6 Group fleet capital expenditure £m April 2013 April 2012 Purchases UK 186.7 187.2 Spain 72.3 118.2 Disposals UK (124.6) (136.3) Spain (43.4) (66.7) Net fleet capex 91.0 102.4 Vehicles: Purchases UK 16,500 16,500 Spain 7,300 11,900 23,800 28,400 Disposals UK 20,700 25,200 Spain 11,200 16,8
Slide 27: UK KPIs
Appendix 7 UK KPIs April 2013 April 2012 Fleet size (closing) 49,900 52,900 Utilisation (average) 88% 89% Closing vehicles on hire 43,100 46,400 Revenue per vehicle £6,063 £6,026 Operating margin 22.1% 23.2% Headcount (closing) 1,835 1,869 PPU £1,003 £893 ROCE 14.8% 16.5% 27
Slide 28: Spain KPIs
Appendix 8 Spain KPIs April 2013 April 2012 Fleet size (closing) 35,100 38,400 Utilisation (average) 90% 90% Closing vehicles on hire 32,100 34,000 Revenue per vehicle €5,562 €5,685 Operating margin 16.7% 19.1% Headcount (closing) 858 915 PPU €544 €293 ROCE 8.4% 9.9% 28