Speedy Hire Plc · LSE:SDY
Speedy Hire — H1 2015 Earnings Presentation
29 slides from Speedy Hire's earnings presentation, Nov 11, 2014
Slide 1: Interim Results for the period ended 30 September 2014
“Wirteay Interim Results for the period ended 31 September 2014 Tuesday 11th November 2014
Slide 2: Welcome
Welcome Mark Rogerson MBE Chief Executive Officer
Slide 3: A good start to the year
A good start to the year Strategy to deliver sustainable profit growth Significant opportunities ahead in the UK Clear, focussed and at-pace plan for the Middle East underway On-track to deliver results in line with Board’s expectations 15% dividend increase
Slide 4: Financial Performance
Financial Performance Tracey Atkin Group Assets and Information Director
Slide 5: Group results, six months ended 30 September
Six months ended 2014 2013# Change 30 September £m £m EBITA Revenue 189.3 168.7 +12.2% +74.7% Gross margin 110.7 106.1 +4.3% £13.8m Gross margin % 58.5% 62.9% £7.9m EBITDA* 37.5 30.4 +23.4% EBITDA* margin % 19.8% 18.0% EBITA* 13.8 7.9 +74.7% PBT EBITA* margin % 7.3% 4.7% +129% PBT* 10.3 4.5 +129% £1
Slide 6: UK & Ireland results, six months ended 30 September
Six months ended 2014 2013 Change 30 September £m £m Revenue 176.3 158.8 +11.0% EBITDA margin +2.4% Gross margin % 61.8% 64.4% 23.1% EBITDA* 40.7 32.9 +23.7% EBITDA* margin % 23.1% 20.7% 20.7% EBITA* 20.3 13.1 +55.0% EBITA* margin % 11.5% 8.2% EBITA margin NBV of property, plant & equipment 243.9 22
Slide 7: International results, six months ended 30 September
Six months ended 2014 2013# Change 30 September £m £m Revenue 13.0 9.9 +31.3% EBITDA* (0.3) 0.3 EBITDA* margin % (2.3%) 3.0% EBITA* (3.3) (1.9) EBITA* margin % (25.4%) (19.2%) NBV of property, plant & equipment 33.6 33.4 +0.6% Net capital expenditure 3.6 4.1 -12.2% Depreciation 3.0 2.2 36.4% Average
Slide 8: Balance sheet as at 30 September
As at 30 September 2014 2013# Change £m £m Property, plant & equipment 277.5 259.3 +7.0% Debtor days – UK & Ireland 76.8 days 63.4 days Bad debt charge as a % of revenue 1.38% 1.58% Net debt 104.4 79.3 -31.7% Gearing 43.2% 33.5% Net debt: EBITDA 1.39x 1.13x Shareholders’ funds 241.6 236.6 +2.1% Net
Slide 9: Return on Capital Employed
Return on Capital Employed “Wirteay 14.0% + 12.0% 5 11.6% 10.0% + 8.0% + 6.0% + Retuoron capital employed 3.0% 2.0%19% 2.3% | i 0.0% FYIO FYI FYI2 FYI3 FYI4 HI FYIS* mROCE-Group mm ROCE - Group excl International * Rolling 12 months
Slide 10: Movement in net debt (£m)
Group excluding International International 120 0.2 2.3 1.5 0.2 Movement in net debt (£m) 100 8.7 11.2 7.0 80 38.9 32.6 8.4 60 103.6 104.4 40 84.4 20 0
Slide 11: Business and strategic update
“Wirteay Business and strategic update Mark Rogerson MBE Chief Executive Office
Slide 12: Largest hire company in the UK and Ireland
Largest hire company in the UK and Ireland £349m £242m revenue (FY 2014) of hire assets Listed on London Stock Exchange 1,200 vehicles 3,420 64,000 employees customers (2014) Unique value proposition – products, specialist solutions and services Largest asset breadth and depth in the industry 220+ 2
Slide 13: UK infrastructure programme opportunities
Nuclear decommissioning: £100bn HS2 / HS3: £45bn+ Network Rail (CP5): £38bn Hinckley Point: £15bn+ Crossrail: £15bn Thames Tideway: £4bn+ National Highways programme £25bn+
Slide 14: Progress delivered in the year
Regenerated revenue growth Delivered early efficiency savings Expedited Network Optimisation Programme Launched Asset Optimisation Programme Launched new IT and Asset Management system Implemented remedial action plan in Middle East People: New management team Restructured sales team Re-engaged our
Slide 15: …to deliver sustainable profit growth
…to deliver sustainable profit growth Our strategy: Our differentiators: Outcome: Sustainable Profit Growth
Slide 16: Revenue and efficiency improvements
Revenue improvements: Customer segmentation Strategic pricing Products, specialist solutions, services ‘Own City’ campaigns Efficiency improvements: Network optimisation Asset utilisation Asset optimisation and availability Logistics optimisation Back office transformation
Slide 17: Revenue share by customer channel
20% Revenue Share Safety Quality Innovation End to End Services 30% Revenue Share Safety Quality Cost & Convenience 50% Revenue Share New channels to market
Slide 18: Growth: 'Own City' progress
Growth: ‘Own City’ progress Wizeay Phase 2 Phase 3 Edinburgh inburg| ta { Newcastle Growth YOY Gl asgow +19% 4 Bradford Growth YOY Manchester +22% Leeds Growth YOY Liverpool P 1% { Sheffield Growth YOY Birmingham +5% Nottingham Growth YOY Oxford +12% Derby Growth YOY CCK Bristol +7% Bath Growth YOY
Slide 19: Express Stores, Superstores and Multi Service Centres
159 Express Stores 38 Superstores 8 Multi Service Centres 1 National Distribution Centre
Slide 20: Coventry Depot, Glasgow MSC and Tamworth NDC
Coventry Depot (before) Glasgow MSC Coventry Superstore (after) Tamworth NDC
Slide 21: 5000 40% 55% 1000 37% 52% 1000 12% 50% 5000 11% 42%
5000 40% 55% 100 1000 500 37% 52% 1000 500 12% 50% 100 5000 11% 42%
Slide 22: 5000 1000 1000 5000
5000 100 1000 500 1000 500 100 5000
Slide 23: Middle East: performance and strategy
Performance: Legacy cost base Spot Hire incompatibility Mobilisation delays Strategy: Withdraw from General & Spot Hire Dispose of or return assets to UK Build and realise value in Oil & Gas services
Slide 24: People: new leadership and engagement
New executive leadership team Additional frontline people Re-launch of apprenticeship scheme Launch of new graduate programme Programme underway to engage workforce
Slide 25: A good start to the year
A good start to the year Strategy to deliver sustainable profit growth Significant opportunities ahead in the UK Clear, focussed and at-pace plan for the Middle East underway On-track to deliver results in line with Board’s expectations 15% dividend increase
Slide 26: Questions
Wizeay Questions
Slide 27: Appendices
“Wirteay Appendices
Slide 28: Borrowing base at 30 September 2014
30 September 2014 Book value Borrowing Base Borrowings Total facility Receivables £97.1m £5.0m £55.5m £193.1m Plant & machinery £175.0m £126.0m £120.7m
Slide 29: Asset Backed Lending Facility - £180m covenants
Asset Backed Lending Facility - £180m Covenant Position at Methodology threshold 30 Sep 2014 Leverage Fixed Charge Cover