Slide 1: Results for the year ended 31 March 2021
Results for the year ended 31 March 2021 The Equipment Rental Specialist
Slide 2: Agenda
Agenda 1. Highlights 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: Highlights
Highlights ▪ Excellent business recovery after a challenging Q1 ▪ FY 2021 results ahead of market expectations ▪ Extremely positive response from colleagues ▪ Service quality to customers maintained ▪ Sales team and branch network availability key ▪ Continued and demonstrable focus on the environmen
Slide 5: Headline Numbers
Headline Numbers Strategic Aim and Highlights Revenues PBTA £308m £23.3m Progressive improvement H1 - 76% prior year throughout year H2 - 94% prior year Market and Trading Review Revenue restoration well underway Excellent recovery Net Debt Return on Average £118.7m Capital Employed 9.2% Reduced by
Slide 6: Long Term Progress – Covid interruption
Long Term Progress – Covid 19 interruption Strategic Aim and Highlights Revenue Profit before tax, amortisation and exceptional items £millions 450 £millions 50 47.1 46.8 400 382.8 362.9 45 40.6 Market and Trading Review 350 40 303.6 308 34.9 300 35 248.7 250 30 25 23.3 200 20 150 15 100 10 Financia
Slide 7: Market and Trading Review
Market and Trading Review
Slide 8: Key Market Dynamics
Key Market Dynamics Strategic Aim and Highlights Revenue Market segment FY FY Market Exposure 2021 2020 Growth on (£m) (£m) prior year Infrastructure* 39% 120.0 139.2 - 14% Market and Trading Review Construction 38% 117.7 143.9 - 18% Housebuilding 8% 25.8 34.2 - 24% Energy 8% 25.8 25.2 +2% Other 7%
Slide 9: UK Construction Output – Vp Core Markets Sectors
UK Construction Output – Vp Core Markets Sectors Infrastructure 50.0 Housing 39.0 £bn 37.0 £bn 45.0 35.0 40.0 33.0 31.0 35.0 29.0 27.0 30.0 25.0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 General Construction * * Includes: Non-Residential, 100 Industrial, Commerc
Slide 10: Business performance – Group
Business performance – Group Strategic Aim and Highlights FY 2021 (£m) FY 2020 (£m) Revenue 308.0 362.9 - 15% Market and Trading Review PBITA 27.7 51.9 - 46% Operating margin 9.0% 14.3% Lockdown conditions in Strong finish Trading recovery Financial Review Q1 severely impact - momentum into into H2
Slide 11: Business performance – UK
Business performance – UK Strategic Aim and Highlights FY 2021 (£m) FY 2020 (£m) Revenue 281.3 331.0 - 15% Market and Trading Review PBITA 27.2 50.2 - 46% Operating margin 9.7% 15.2% Infrastructure led Construction Housebuilding Leaner business recovery slower but improved stable Financial Review Vp
Slide 12: Business performance – International
Business performance – International Strategic Aim and Highlights FY 2021 (£m) FY 2020 (£m) Revenue 26.7 31.9 - 16% PBITA 0.6 1.7 - 65% Market and Trading Review Operating margin 2.2% 5.4% Cancelled or postponed projects Business confidence slower to pickup travel restrictions in Australia / New Zea
Slide 13: Rental fleet investment
Rental fleet investment Strategic Aim and Highlights FY 2021 (£m) FY 2020 (£m) UK 35.6 41.0 International 4.6 8.1 Market and Trading Review Total fleet investment 40.2 49.1 Disposal proceeds (17.5) (21.4) Net expenditure on fleet 22.7 27.7 Financial Review Early capex commitment Disposal of surplus
Slide 14: Outlook – Recovery into 2021
Outlook – Recovery into 2021 Strategic Aim and Highlights ▪ New financial year has started strongly ▪ All geographies making good progress ▪ Core markets recovering well : into new financial year - Infrastructure - AMP7, CP6, HS2 ▪ We entered the pandemic with an Market and Trading Review - Construc
Slide 15: Resilient structure gives excellent platform
Resilient structure gives excellent platform Strategic Aim and Highlights Proven and Highly Experienced resilient model Senior Management Market and Trading Review Long Term Focus Business diversity - Market Sectors On Service and Product Financial Review - Products & Services Excellence - Geography
Slide 16: Financial Review
Financial Review
Slide 17: Financial highlights
Financial highlights Strategic Aim and Highlights FY 2021 FY 2020 % £m £m change Revenue 308.0 362.9 - 15% EBITDA 72.7 98.1 - 26% Market and Trading Review Depreciation (45.0) (46.2) - 3% EBITA 27.7 51.9 - 47% Interest (4.4) (4.8) PBTA (and exceptionals) 23.3 47.1 - 51% Financial Review Net margin 7
Slide 18: Earnings per share and dividends
Earnings per share and dividends 8.45 Strategic Aim and Highlights Dividend per share (pence) 35.0 FY 2021 FY 2020 30.2 30.5 30.0 Special dividend - 22.0p 26.0 25.0 25.0 22.0 Market and Trading Review Interim dividend - 8.45p 20.0 Final dividend 25.0p - 15.0 EPS adjusted * 46.8p 91.0p 10.0 5.0 8.5 *
Slide 19: 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 12 Market and Trading Review 10 9.2% 8 6 WACC 4 2 0 Financial Review FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 ➢ Covid temporary impact, still above WACC ➢ Recovery to double digits expected in FY202
Slide 20: Balance sheet - strength
Balance sheet - strength Strategic Aim and Highlights FY 2021 FY 2020 £m £m Hire Fleet 206.0 218.1 Other fixed assets 27.9 29.7 Market and Trading Review Intangible assets / goodwill 64.4 74.3 Working capital (11.5) 19.1 Other (8.2) (8.2) Net debt (121.9) (159.8) IFRS16 net (3.6) (3.3) Net assets 15
Slide 21: Strong focus on cash management
Strong focus on cash management Strategic Aim and Highlights FY 2021 FY 2020 £m £m EBITDA 72.7 98.1 Cash from operations 102.6 74.3 Exceptional items (15.2) (1.5) Market and Trading Review Capital expenditure (46.5) (54.7) Proceeds from disposals 17.5 21.4 Acquisitions - (3.3) Interest (4.7) (4.5) T
Slide 22: Effective cash collection
Effective cash collection Debtor Day trends March March March 2019 2020 2021 66 64 Debtor 58 62 56 62 days days days days 60 58 Bad debt 0.5% 0.8% 0.6% write off as 56 (£2.0m) (£2.9m) (£1.9m) % revenue 54 Mar-19 Mar-20 Mar-21 Vp plc | The Equipment Rental Specialist | 22
Slide 23: Net debt and facilities – refinance since year end
Net debt and facilities – refinance since year end Strategic Aim and Highlights June 2021 FY 2021 FY2020 £m £m £m Private placement matures Jan 2027 65.0 65.0 65.0 Pricoa shelf matures April 2028 28.0 - - Market and Trading Review RCF matures June 2024 / December 2021 90.0 135.0 135.0 Total committe
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 18.0 3.0 16.0 2.5 14.0 12.0 2.0 Market and Trading Review 10.0 11.21 13.00 11.35 10.58 1.5 8.0 1.89 1.62 1.65 1.62 1.39 6.0 1.0 6.66 4.0 0.5 2.0 0.0 0.0 FY 17 FY 18 FY
Slide 25: Supplementary Schedules
Supplementary Schedules
Slide 26: Net Working Capital
Net Working Capital FY 2021 FY 2020 FY 2021 £m £m Cashflow movement £m Inventories 7.3 9.1 1.8 Trade and other receivables 66.8 84.3 17.5 Trade creditors, accruals, (87.0) (75.4) 11.6 other Net working capital (12.9) 18.0 30.9 Capital creditors movement 2.4 Other cashflow 0.9 Working capital cashflo
Slide 27: IFRS16 impact on profit
IFRS16 impact on profit FY 2021 FY 2021 FY 2021 FY 2020 excluding IFRS IFRS impact Reported Reported EBITDA £m 72.7 24.0 96.7 123.8 PBITA (and exceptionals) £m 27.7 3.2 30.9 55.5 Financial expense £m (4.5) (3.3) (7.8) (8.8) PBTA (and exceptionals) £m 23.3 (0.1) 23.2 46.6 EPS (adjusted) pence 46.8 (0
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 2017 1996 division Cannon Acquisition of created Brandon Hire Tool Hire acquired 1982 Exit from US
Slide 29: Group businesses
Group businesses Vp plc | The Equipment Rental Specialist | 29
Slide 30: Group businesses
Group businesses Vp plc | The Equipment Rental Specialist | 30
Slide 31: Central House, Beckwith Knowle Otley Road, Harrogate North Yorkshire, HG3 1UD
Central House, Beckwith Knowle Otley Road, Harrogate North Yorkshire, HG3 1UD T 01423 533400 www.vpplc.com Vp plc Company Number 481833