Van Elle Holdings Plc · LSE:VANL
Van Elle — H1 2021 Earnings Presentation
20 slides from Van Elle's earnings presentation, January 2021
Slide 1: Total Foundation Solutions - Interim Results 31 October 2020
TOTAL FOUNDATION SOLUTIONS. VAN ELLE HOLDINGS PLC INTERIM RESULTS 31 OCTOBER 2020
Slide 2: Interim results Agenda
Interim results Agenda THE Overview and COVID-19 impact UK’S LARGEST GEOTECHNICAL Financial review Strategy and outlook ENGINEERING CONTRACTOR 2 VAN ELLE HOLDINGS PLC INTERIM RESULTS 31 OCTOBER 2020
Slide 3: Overview and COVID-19 impact
Overview and COVID-19 impact Trading activity was significantly below pre- Mark Cutler | Chief Executive Officer COVID levels during the first quarter, with a gradual recovery in contract activity through the reporting period 3 VAN ELLE HOLDINGS PLC INTERIM RESULTS 31 OCTOBER 2020
Slide 4: Overview
Overview • Q1 FY21 was significantly impacted by the market downturn caused by COVID-19 restrictions • H1 FY21 revenue decreased by 21% compared with H1 FY20 • Trading returned to pre-COVID-19 levels and the Group returned to profitability during the second quarter • Gross margins have been adversel
Slide 5: COVID-19 impact
COVID-19 impact • Our primary focus has been on the health and wellbeing of all employees • Operating procedures adopted in accordance with government advice and industry guidance have allowed contract works to be delivered safely and productively throughout • At the peak of the first lockdown 50% o
Slide 6: Revenue analysis
Revenue analysis Monthly Revenue 10,000 9,000 8,000 7,000 6,000 £'000 5,000 4,000 3,000 2,000 1,000 - Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 • Majority of customer sites closed in late March and throughout April 2020 • Trading returned to pr
Slide 7: Financial review
Financial review Strengthened balance sheet and increased Graeme Campbell | Chief Financial Officer liquidity headroom following the equity fundraising in April 2020, the new lending facility in October 2020 and careful cash management 7 VAN ELLE HOLDINGS PLC INTERIM RESULTS 31 OCTOBER 2020
Slide 8: Group income statement
Group income statement H1 2021 H1 2020 • Revenue decline of 21% as activity during the first quarter was £m £m Revenue 38.3 48.5 heavily disrupted by COVID-19 Gross profit 10.6 13.2 • Steady recovery to pre COVID-19 trading levels in September 27.6% 27.3% and October when the Group traded profitably
Slide 9: General Piling
General Piling H1 2021 H1 2020 £m £m Revenue 13.8 17.7 Underlying operating profit 0.2 0.2 • Revenue contracted by 22% primarily due to the significant impact of COVID-19 in Q1 • Despite recovery to pre COVID-19 trading levels in Q2, market conditions remain highly competitive and volatile • Key con
Slide 10: Specialist Piling & Rail
Specialist Piling & Rail H1 2021 H1 2020 £m £m Revenue 12.7 14.0 Underlying operating profit 0.8 0.4 • Specialist Piling had the strongest recovery since the first lockdown with revenue growth of 12% compared to the previous year • Operational teams operating a full capacity for much of H1 • Strong
Slide 11: Ground Engineering Services
Ground Engineering Services H1 2021 H1 2020 £m £m Revenue 11.7 16.9 Underlying operating (loss)/profit (0.1) 0.8 • Revenue decreased by 30% due to the significant impact of the first COVID-19 lockdown on housebuilding activity with all sites closed in April • Housing division revenues recovered to n
Slide 12: Balance sheet & Net Funds
Balance sheet & NET FUNDS H1 2021 FY20 H1 2020 • Strengthened balance sheet and increased £m £m £m Fixed assets (including intangible assets) 38.6 40.9 44.8 liquidity headroom due to share placing in April Net working capital 7.3 5.3 9.0 2020 and new asset-backed lending facility of up Net funds/(de
Slide 13: Cash flow
Cash flow EBITDA of £1.9m in the Partial reversal of working capital decrease prior to 30 period April 2020 Capital expenditure limited to sustaining current capacity Reduction in HP liabilities. 13 VAN ELLE HOLDINGS PLC INTERIM RESULTS 31 OCTOBER 2020
Slide 14: Strategy and outlook
Strategy and outlook Notwithstanding the impact of COVID-19 in the Mark Cutler | Chief Executive Officer period, the Group’s STRATEGY IS UNCHANGED AND ITS markets continue to offer considerable opportunity 14 VAN ELLE HOLDINGS PLC INTERIM RESULTS 31 OCTOBER 2020
Slide 15: Well positioned in strong end markets
Well positioned in strong end markets Revenue by sector Diverse customer base Positive long term dynamics Medium term financial targets • Structural housing shortage Residential • Social and affordable housing • Residential for rent 5-10% 45% • Off-site/modular solutions • Standardised construction
Slide 16: Strategic actions are strengthening the business
Strategic actions Are strengthening the business Simplified structure, strengthened leadership, employee engagement and development 1 Improving Enhanced operational performance, safety & quality and asset utilisation performance Stronger commercial controls, clarity of compliance and governance/risk
Slide 17: Current Trading and Outlook
Current Trading and Outlook • Revenues post period-end have been impacted as a result of Christmas closures and normal seasonal factors, however trading remains in line with Board expectations • Assuming the continuation of construction activity throughout the ongoing COVID-19 pandemic, revenues are
Slide 18: Statistics
Statistics H1 2021 H1 2020 FY 2020 Financial measures Revenue (£m) 38.3 48.5 84.4 Gross profit % 27.6% 27.3% 26.8% Overheads % (underlying) 28.9% 24.3% 28.5% Capital expenditure (£’m) 0.3 1.8 3.8 Operational measures Number of rigs 115 117 118 Average rig utilisation %* 39% 48% 43% Total contracts d
Slide 19: Q&A
Q&A 19 VAN ELLE HOLDINGS PLC INTERIM RESULTS 31 OCTOBER 2020
Slide 20: 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 By attending the presentation to which this document relates and/or by accepting this document you will be taken to have represented, not intended to