Zigup Plc · LSE:ZIG
Zigup — Redde Northgate — H1 2021 Earnings Presentation
25 slides from Zigup's earnings presentation, Dec 8, 2020
Slide 1: Interim Results FY2021
Interim Results FY2021 8 December 2020
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 1. Overview Martin Ward 2. Financial Review Philip Vincent 3. Business Update Martin Ward 4. Q&A 3
Slide 4: Overview
Overview Martin Ward, CEO 8 December 2020 4
Slide 5: Overview
Overview • Encouraging momentum in the Group Trading and • H1 2021 performance indicators have fully recovered or substantially improved COVID-19 • Northgate UK&I and Northgate Spain ahead of expectations – full recovery in VOH and strong used vehicle performance impact • Redde impacted by slower re
Slide 6: Merger integration and synergies
Merger integration and synergies Synergies Cost synergies £m • Further progress against cost synergy targets, increasing to £11.7m to date 19.2 • Cost synergy target as per Prelims of £12m by end 15.9 16.2 15 FY 2021 and £15m by end FY 2022, with total £10m implementation costs held flat 11.7 12 10
Slide 7: Trading summary
Trading summary H1 2021 H1 COVID-19 Latest trading • Revenue (excluding vehicle sales) • Employees and customers primary • Northgate UK&I £429m (+61.3% to prior period) focus - customer support packages o No discernible impact of • Increase attributable to Redde of £3.4m in period November lockdown
Slide 8: Financial review
Financial review Philip Vincent, CFO 8 December 2020 8
Slide 9: H1 2021 results
H1 2021 results H1 2021 H1 2020 H1 2021 H1 2020 % change Revenue – vehicle hire 249.0 265.9 Revenue – claims and services 180.0 - Revenue (exc. vehicle sales) 429.0 265.9 +61.3% Revenue (exc. vehicle sales) 429.0 265.9 Underlying EBIT 48.7 35.1 +38.7% Revenue – vehicle sales 127.1 91.9 Total revenue
Slide 10: Northgate UK&I
Northgate UK&I H1 2021 H1 2020 Rental Volumes % change £m £m Q4 FY2020 H1 FY2021 Revenue – Vehicle hire 147.0 158.9 -7.5% • 6% reduction mid- March to end April in Rental profit 15.1 15.6 -3.4% Q4 FY 2020 due to Rental margin 10.3% 9.8% +0.5ppt COVID-19 • Full recovery to close Disposal profit 17.0
Slide 11: Northgate Spain
Northgate Spain H1 2021 H1 2020 Rental Volumes % change £m £m Q4 FY2020 H1 FY2021 Revenue – Vehicle hire 102.4 107.0 -4.3% • 7% reduction mid- March to end April in Rental profit 14.7 18.1 -19.0% Q4 FY 2020 due to Rental margin 14.4% 16.9% -2.5ppt COVID-19 • Full recovery to close Disposal profit 1.
Slide 12: Redde
Redde H1 2021 Rental Volumes £m Q4 FY2020 H1 FY2021 • Initial impact in Q4 2020 Revenue – Claims and services 181.3 significant as traffic volumes reduced Gross profit 25.9 • Partial recovery in H1 Gross margin 14.3% Initial 2021 to c20-30% below Partial recovery lockdown pre-COVID levels as Operati
Slide 13: Cashflow and capex
Cashflow and capex H1 2021 H1 2020 Change £m £m £m Underlying EBITDA 144.0 138.7 +5.3 Net replacement capex (46.7) (76.6) +29.9 Lease principal payments (16.9) (2.9) -14.1 Steady state cash generation 80.4 59.2 +21.2 Continuing strong steady state cash generation Exceptional costs (5.4) (2.2) -3.2 W
Slide 14: Bank facilities provide room for growth
Bank facilities provide room for growth • Borrowing cost of 2.1%, 0.4% lower than H1 Facility Drawn Headroom Maturity Borrowing 2020 (2.5%) driven by lower base rate £m £m £m Cost environment UK Bank • During the period, the previous Redde £50m 608 334 274 Nov 2023 2.0% Facility bank facility was ca
Slide 15: Business update
Business update Martin Ward, CEO 8 December 2020 15
Slide 16: Vision, Purpose & Strategic framework
Vision, Purpose & Strategic framework Our Vision Our Purpose To be the leading supplier of mobility solutions and To keep customers mobile, whether through meeting their automotive services to a wide range of businesses and regular mobility needs or by servicing and supporting them customers when un
Slide 17: Focus update
Focus update Cash Costs Customers and Employees Cash generation Digital PO process Employee SAYE, homeworking Cash consumption inc. fleet Integration synergies Customer satisfaction Contract hire funding model Permanent cost savings NPS Working capital Investment in innovation Trustpilot Products Se
Slide 18: Strong new wins and tenders leveraging the Group
Strong new wins and tenders leveraging the Group Large new rental 3 year contract, Top 5 FN50 Implementing new contract to with c30k leasing outsource solution multinational recoveries pa, company for major insurer technology and e- renewed with managed covering claims, commerce largest police repai
Slide 19: ESG update
ESG update Environment Sustainable transport EV strategy • Energy and Carbon reporting aligned to • Progressively aligning our fleet policy with • Electrification of fleet as demand grows relevant regulatory requirements changing market dynamics to be at the • Good selection of models available acro
Slide 20: Appendix
so Bc 20 reddeé N@RTHGATE pic
Slide 21: Appendix: Redde Northgate shareholder proposition
Appendix: Redde Northgate shareholder proposition Sustainability Strategic Rationale for Merger • COVID response supported stakeholders • Create a leading integrated mobility solutions o Customer support packages platform o NHS and key worker replacement vehicle scheme • Cost synergies from consolid
Slide 22: Northgate Accident and incident management launch
Northgate Accident and incident management launch What is accident management? Spotlight on FMG Damage 33 >500,000 Work with 13 >160,000 Accident Desktop of the top 25 p/a FNOL Assessment and Recovery Engineering FN50 Repair Allocation companies >70,000 p/a Built to meet >550 Certified to a full cus
Slide 23: Complete Service Package – Vans as a Service (VaaS)
Complete Service Package – Vans as a Service (VaaS) CUSTOMER NEEDS NORTHGATE SOLUTIONS 12months+ Flexible Hire VanHire+ Short Term Hire Risk Management Vehicle Inspection App Standard with our hires Vehicle Inspection App Fuel Card Telematic Fleet Management s Telematics Accident Management We Buy Y
Slide 24: Redde Northgate UK&I Enhanced Scale
Redde Northgate UK&I Enhanced Scale • Branch network provides scale and reach across the UK and Ireland • 66 Redde Northgate Branches – Northgate vehicle hire and Auxillis services combined, providing rental, workshop and other services • 14 Van Monster Branches selling used vehicle to customers • c
Slide 25: reddeé N@RTHGATE pic
reddeé N@RTHGATE pic