Van Elle Holdings Plc · LSE:VANL
Van Elle — FY2020 Earnings Presentation
26 slides from Van Elle's earnings presentation, November 2020
Slide 1: Full year results
Full year results Van Elle Holdings plc | 30 April 2020
Slide 2: Agenda
Agenda 1. Overview and COVID-19 impact 2. Financial review 3. Strategy and outlook 2 Van Elle Holdings plc | Full year results | 30 April 2020
Slide 3: Overview and COVID-19 impact
Overview and COVID-19 impact Mark Cutler | Chief Executive Officer
Slide 4: Overview
Overview • FY20 was significantly impacted by the challenging conditions in the wider construction market and by COVID-19, resulting in a 5% year-on-year revenue decrease with c. £10m revenue impact due to COVID-19 • Underlying operating loss of £0.3m (2019: profit of £5.2m) • April share placing ra
Slide 5: COVID-19 impact
COVID-19 impact Employees Site activity Financial Recovery • Implemented procedures • Revenues dropped to • Multiple cost reduction • Activity levels improving to protect employees and 20% in April, recovered to initiatives implemented slightly ahead of maintain their safety – no 70% in July • Gover
Slide 6: Revenue analysis: FY2020 revenue phasing
Revenue analysis FY2020 revenue phasing 10,000 7,500 £’000 5,000 2,500 - May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 Challenging market conditions and Brexit uncertainty Improved activity levels in Q2 Seasonal impact and poor weather COVID-19 6 Van Elle Holdin
Slide 7: Revenue analysis: FY2020/21 revenue phasing
Revenue analysis FY2020/21 revenue phasing 10,000 7,500 £’000 5,000 2,500 - May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 • Majority of customer sites closed in late March and throughout April • Margins remained broadly stable, despite new s
Slide 8: Financial review
Financial review Graeme Campbell | Chief Financial Officer
Slide 9: Group income statement
Group income statement £'m 2020 2019 • H1 revenue growth primarily due to growth in the housing sector Revenue 84.4 88.5 • H2 revenue impacted by poor weather Jan-Feb and COVID-19 resulting in a full Gross profit 22.6 28.2 year revenue decrease of 5% 27% 32% • Gross profit decreased to 27% as a resu
Slide 10: Non-underlying items
Non-underlying items £'m 2020 2019 1. Exceptional restructuring costs Underlying operating (loss)/profit (0.3) 5.2 including redundancy costs; Non-underlying items: 2. Impairment of the Group’s Pinxton site, which was vacated during the - Exceptional costs 1 (0.7) (0.6) year (now held as an investme
Slide 11: General Piling
General Piling £'m 2020 2019 Revenue 29.3 37.2 Underlying operating (loss)/profit (0.9) 1.2 • Revenue contracted by 21% primarily due to wider market conditions as well as the significant impact of COVID-19 • Very low activity levels in Q1 and a negative product mix (including lower demand for rotar
Slide 12: Specialist Piling & Rail
Specialist Piling & Rail £'m 2020 2019 Revenue 25.4 28.6 Underlying operating (loss)/profit 0.3 2.7 • Strong performance in the highways sector with a presence on six smart motorway projects in the year, and several ongoing into 2021 • Subdued revenue in the Rail division due to delays to Network Ra
Slide 13: Ground Engineering Services
Ground Engineering Services £'m 2020 2019 Revenue 29.6 22.6 Underlying operating (loss)/profit 0.2 1.3 • Increased market share in the Housing division resulted in strong revenue growth but margins below expectations • All housebuilding sites closed in the last 6 weeks of the year due to COVID-19 si
Slide 14: Balance sheet
Balance sheet £'m 2020 2019 • Strengthened balance sheet and Fixed assets (including intangible assets) 40.9 40.8 increased liquidity headroom Net working capital 5.3 7.1 • Primarily due to share placing in April Net funds/(debt) 0.9 (4.2) 2020 raising net proceeds of £6.3m Taxation and provisions (
Slide 15: Cash flow
Cash flow Early repayment of Primarily due to bank loan (due to be lower activity levels repaid in August 2020) due to COVID-19 15 Van Elle Holdings plc | Full year results | 30 April 2020
Slide 16: Strategy and outlook
Strategy and outlook Mark Cutler | Chief Executive Officer
Slide 17: Our vision, differentiators and values
Our vision: To be the leading, most trusted provider of total foundation solutions Our differentiators: INTEGRATED UK’S LARGEST DEDICATED MARKET INNOVATIVE EXPERT CAPABILITY RIG FLEET TEAM LEADING We provide an We have 118 rigs We deploy a We are constantly More than 20 We are one of the end-to-end
Slide 18: Strategic actions are strengthening the business
Strategic actions are strengthening the business Simplified structure, strengthened leadership, employee Co-location completed, leadership team finalised, employee Improving engagement score engagement and development engagement improving 1 Enhanced operational performance and asset utilisation Oper
Slide 19: Well positioned in strong end markets
Well positioned in strong end markets Medium term Revenue by sector Diverse customer base Positive long term dynamics financial targets • Structural housing shortage Residential • Social and affordable housing 5-10% • Residential for rent Revenue growth 50% • Off-site/modular solutions • Standardise
Slide 20: Current Trading and Outlook
Current Trading and Outlook • Majority of customer sites have safely re-opened and revenue has recovered to 70% of normal levels by end of Q1 • Exact trajectory of the wider industry recovery remains uncertain; excepting further disruption, likely return to full capacity by end of Q3 • Positive mark
Slide 21: A review of FY2020
A review of FY2020 May June July • New Vibro capability • Ground Engineering • Investors in People launched award for VEMOG Silver award • Don Viaduct ground investigation • M1 Smart Motorway completed on the road/rail rig contract award circa Highland • Malcolm O’Sullivan £6m for Costain Enhancemen
Slide 22: A review of FY2020
A review of FY2020 November December January • New lorry mounted • First company annual • Strata complete rigs deployed on award event held at largest ever ground Smart Motorway Pride Park, Derby investigation contract projects • Christmas rail works for Skanska • Completion of major completed • Nat
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Slide 24: Statistics
Statistics £'m 2020 2019 Financial measures Revenue (£m) 84.4 88.5 Gross profit % 27% 32% Overheads % (underlying) 27% 26% Capital expenditure (£'m) 3.8 3.6 Operational measures Number of rigs 118 115 Average rig utilisation % 43% 50% Total contracts delivered 930 1,210 Enquiries 5,123 4,675 H&S and
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by or on behalf of Van Elle Holdings plc (“Van Elle”). The information set out in this presentation is not intended to form the basis of any contract. By attending (whether in person, by telephone or webcast) this presentation or by reading the presenta
Slide 26: Van Elle
@ VAN ELLE QED 0 TAL FOUNDATION SOLUTIONS