Slide 1: Interim Results H1 2023
Interim Results H1 2023 7 Dec 2022
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Redde Northgate Plc (the “Company” and, together with its subsidiaries, the “Group”). For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or ans
Slide 3: Agenda
Agenda Overview Martin Ward Financial Review Philip Vincent Martin Ward Chief Executive Officer Business Update Martin Ward Q&A Philip Vincent Chief Financial Officer 3
Slide 4: Overview
Overview Martin Ward 4 redd@n@RTHGATE
Slide 5: H1 2023 Overview: Financial performance
H1 2023 Overview: Financial performance Underlying Trading Revenues: + 20% to £627.6m PBT (£m) Revenue (£m) EBIT: + 7.0% to £93.4m 627.6 83.7 PBT: + 6.1% to £83.7m ROCE: 1.0ppt increase to 13.5% +20% +6.1% H1 2022 H1 2023 H1 2022 H1 2023 Leverage: 1.6x (H1 2022 1.5x) Reflecting Board confidence, int
Slide 6: H1 2023 Overview: Achievements
H1 2023 Overview: Achievements Strong operational performance H1 strategic progress Revenue growth drivers Acquisitions delivering on strategic goals Fleet size: up 8% to over 130,000, strong growth in Spain & Redde New contracts: Two large insurance contracts Strong demand Acquisition of for FMG Re
Slide 7: Financial Review
Financial Review Philip Vincent 7 7
Slide 8: H1 2023 Results
H1 2023 Results H1 2023 H1 2022 £m £m % change Revenue H1 2023 H1 2022 % change Revenue – vehicle hire 302.7 277.1 9.2% Revenue (exc. vehicle sales) 627.6 522.9 20.0% Revenue – claims and 324.9 245.8 32.2% services Underlying EBIT 93.4 87.3 7.0% Revenue (exc. vehicle sales) 627.6 522.9 20.0% Underly
Slide 9: Northgate UK&I
Northgate UK&I H1 2023 H1 2022 % change £m £m Key Highlights Revenue – Vehicle hire 184.1 170.8 +7.8% • Hire revenue 7.8% increase • Rental margin of 15.6%, above Rental profit 28.8 30.0 -4.2% sustainable c.15% Rental margin 15.6% 17.6% -2.0ppt • Restricted vehicle supply held back VOH and disposal
Slide 10: Northgate Spain
Northgate Spain H1 2023 H1 2022 % change £m £m Key Highlights Revenue – Vehicle hire 122.7 107.7 +13.9% • Hire revenue 13.9% increase • Rental margin increased 3.3ppt to Rental profit 25.1 18.5 +35.7% 20.4%, above sustainable c.15% Rental margin 20.4% 17.1% +3.3ppt • Disposal profits 45.1% higher, l
Slide 11: Redde
Redde H1 2023 H1 2022 % change Key Highlights £m £m • Revenues increased by 31.5% with Revenue – Claims and new contract volumes and 331.4 251.9 +31.5% services normal traffic • EBIT increasing with volumes to Gross profit 70.4 60.5 +16.4% £20.4m • EBIT margin reflects volume mix Gross margin 21.2%
Slide 12: Group profit waterfall H1 2022-23
Group profit waterfall H1 2022-23 (UK&I) (Spain) (Spain) Disposal profits Other profits 4.8 The chart reflects underlying profits £24.70m (30%) £27.0m (34%) £59.0m £101.2m (70%) (67%) £51.9m (66%) 12
Slide 13: Cashflow and capex
Cashflow and capex H1 2023 H1 2022 Change £m £m £m Underlying EBITDA 198.8 182.8 16.0 Net replacement capex1 (53.1) (68.8) 15.7 Lower replacement capex in Spain Lease principal payments (24.6) (20.4) (4.2) Steady state cash generation 121.2 93.5 27.7 Continuing strong steady state cash generation Ex
Slide 14: Well-financed to drive sustainable shareholder value
Well-financed to drive sustainable shareholder value A strong financial platform … Acquisitions and cumulative returns to shareholder (£m) 120.0 H1 2023 H1 2022 Dividends paid final 103.8 100.0 Dividends paid interim Net debt £661.3m £587.2m 80.0 Acquisitions 68.8 Net debt / EBITDA 1.6x 1.5x Share b
Slide 15: Business Update
Business Update Martin Ward 1515
Slide 16: Current Market context
Current Market context UK & Ireland Spain Redde Strong demand, especially from larger GDP growth above EU average, Traffic volumes: commuting is back fleet customers public investment Repair capacity scarce across marketplace Motivation is move from ownership/ Strong demand in core sectors of long t
Slide 17: Our fleet
Our fleet Fleet growth, despite reduction in registrations UK LCV supply market dynamics H1 2023 H1 2022 Annual LCV New Registrations Source SMMT, 7 Nov 22 UK 53,800 55,900 400k Spain 60,600 55,900 350k Insurance mobility 16,900 9,800 300k Total 131,300 121,600 250k 200k 150k Managing supply opportu
Slide 18: Our rental customers: Diverse end markets & customers
Our rental customers: Diverse end markets & customers UK Customer profile Spanish Customer profile % Fleet % Fleet VoH Sectors Sectors Sub sectors VoH Facilities Mgmt/Civil Engineering Construction, infrastructure Construction 10-15% ea Specialist construction 20-25% ea Rental services, safety, Vehi
Slide 19: Integrated Mobility Solutions: opportunities
Integrated Mobility Solutions: opportunities Integrated platform of complementary services Leveraging breadth & scale of mobility platform No major gaps in core product & services offering Potential to explore adjacencies 19
Slide 20: Resilience
Resilience Positioning offering continued resilience Current market dynamics: favouring outsourcing to cost-efficient providers Attractive proposition: insurance customer extensions Protecting margin: managing cost inflation with targeted pricing & levies Well diversified: broad customer end market
Slide 21: Investment proposition
Investment proposition Sustainable returns profile Market leading platform providing end-to-end mobility solutions • Track record of organic margin & profit growth • Competitive advantage from operational scale & breadth • Value accretive inorganic growth • Unique range of complementary services • P
Slide 22: Looking forward
Looking forward Outlook Demand for our services continues to be robust across geographies, along with continuing strength in residual values. These factors underpin our confidence for the full year which is expected to be modestly above market expectations. While the Board is mindful of the ongoing
Slide 23: Q&A
Q&A Martin Ward & Philip Vincent 2323
Slide 24: Appendices
Appendices Fleet progression Website 2424
Slide 25: Appendix – fleet reconciliation
Appendix – fleet reconciliation Vehicles # (UK&I) UK&I Spain Redde Group Opening owned fleet (Apr-22)* 54,000 58,100 3,200 115,300 Purchases 2,900 5,700 2,200 10,800 Disposals (4,900) (2,800) 0 (7,700) 3,400 growth in owned fleet Direct purchases and other movements 300 0 0 300 Closing owned fleet (
Slide 26: Appendix – Impact of depreciation rate
Appendix – Impact of depreciation rate £m FY23 FY24 FY25 FY26 FY27 Total Reduced depreciation 54.6 30.9 8.2 0.3 - 94.1 Key points Reduced disposal profits (7.8) (40.4) (38.0) (7.0) (0.9) (94.1) Statutory PBT is expected to Impact on Statutory EBIT 46.8 (9.4) (29.8) (6.7) (0.9) - increase by £46.8m i
Slide 27: Corporate website upgrade, new email alert registration
Corporate website upgrade, new email alert registration Our geographical footprint Our customer solutions Corporate website New corporate website launched More information on RN businesses & strategy Includes factsheets on operations, plus Sustainability actions etc. Email notification alerts New pr