Vp Plc · LSE:VP.

Vp — FY2023 Earnings Presentation

32 slides from Vp's earnings presentation, 2023

  1. Slide 1: Results for the year ended 31 March 2023

    Results for the year ended 31 March 2023 The Equipment Rental Specialist Stephen Wells – Derby Groundforce depot

  2. Slide 2: Introduction

    Introduction Jay Topping Vp plc | The Equipment Rental Specialist | 2 Torrent Trackside Lichfield depot

  3. Slide 3: Headline Numbers

    Highlights Financial Review Market Marketand andTrading TradingReview Review Headline Numbers Revenues PBTAE £371.5m £40.5m 6% growth on prior year 4% increase in profits at improved margins Return on Average Net Debt Capital Employed 14.4% £134.4m Quality Returns Increased by £3.8m Vp plc | The Equ

  4. Slide 4: Highlights

    Highlights Financial Review Market Marketand andTrading TradingReview Review Highlights Earnings quality Revenue Markets Profit growth at maintained return Growth from mix of hire rate Infrastructure and civils positive on capital employed and margin increase and volume Housebuild stable until Q4. G

  5. Slide 5: Financial Review

    Financial Review Kyle Allison & Josh Kelly Vp plc | The Equipment Rental Specialist | 5 TPA Worksop depot

  6. Slide 6: Financial highlights

    Highlights Financial Review Market and Trading Review Financial highlights FY 2023 FY 2022 (£m) (£m)  Revenue increase of 6% represents good progress Revenue 371.5 350.9  Growth in PBTAE of 4%, despite EBITDA 92.9 88.9 inflationary headwinds and a higher Depreciation (46.9) (45.5) interest cost In

  7. Slide 7: ROACE

    Highlights Financial Review Market and Trading Review ROACE Long term quality of earnings 20 18 16.2% 16.3% 16.0% 16 14.8% 14.5% 14.5% 14.5% 14.4% 13.5% 14 12 9.2% 10 WACC 8 6 4 2 0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ROACE definition PBIT / average (net a

  8. Slide 8: Growth in dividends and EPS

    Highlights Financial Review Market and Trading Review Growth in dividends and EPS FY 2023 FY 2022  Proposed final dividend 26.5p, making 37.5p full year Dividend per share (pence) 37.5 36.0  Reflects 2.1x cover Dividend cover (times) 2.1x 2.0x  Represents sustainable profitability EPS adjusted* (

  9. Slide 9: Strong balance sheet

    Highlights Financial Review Market and Trading Review Strong balance sheet FY 2023 FY 2022 (£m) (£m) Hire Fleet 220.6 216.6  Strong balance sheet positions Other fixed assets 31.8 30.9 us well for future opportunity Intangible assets/ goodwill 57.7 62.4 IFRS16 net assets/ liabilities (3.9) (3.5) 

  10. Slide 10: Net debt bridge

    Highlights Financial Review Market and Trading Review Net debt bridge Strong cash generation  Net debt of £134.4m, a slight 145 increase on last year 125  Strong operating cashfows 130.6 134.4 105  Continue to refresh our asset base, gross capex of £63m offset by £m 85 proceeds of £25m 65 45  Wo

  11. Slide 11: Net debt and facilities

    Highlights Financial Review Market and Trading Review Net debt and facilities FY 2023 FY 2022 (£m) (£m)  Two private placements provide Private placement - Jan 2027 65.0 65.0 £93m of fixed low cost debt Pricoa shelf - April 2028 28.0 28.0 RCF matures - June 2024 90.0 90.0  69% of year end net debt

  12. Slide 12: Significant covenant headroom

    Highlights Financial Review Market and Trading Review Significant covenant headroom EBITA Interest Cover > 3 times Net Debt / EBITDA < 2.5 times 14.0 3.0 12.0 2.5 10.0 11.21 2.0 10.58 10.12 8.0 8.26 1.5 6.0 1.62 1.65 6.66 1.62 1.43 1.44 1.0 4.0 2.0 0.5 0.0 0.0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY

  13. Slide 13: Market and Trading Review

    Market and Trading Review Dean Ellor and Jessica Fox Vp plc | The Equipment Rental Specialist | 13 UKForks Derby depot

  14. Slide 14: Business Model & Strategy

    Highlights Financial Review Market and Trading Review Business Model & Strategy  Specialist rental  Supporting infrastructure, construction, housebuild and energy markets  UK & International  Deliver high quality returns  Long term view  Embracing ESG responsibilities Vp plc | The Equipment Re

  15. Slide 15: Markets – Growth in core sectors

    Highlights Financial Review Market and Trading Review Markets – Growth in core sectors Key market segments Revenue Market exposure FY 2023 FY 2022 Growth on (£m) (£m) prior year Infrastructure* 38% 141.1 129.3 9% Construction 41% 153.7 144.0 7% Housebuilding 8% 29.1 25.4 15% Energy 6% 22.7 30.0 (25)

  16. Slide 16: UK Construction Output

    Highlights Financial Review Market and Trading Review UK Construction Output Vp Core Sectors – Flattening of the curve New Infrastructure New Housing £bn £bn 50.0 35.0 45.0 30.0 40.0 25.0 20.0 35.0 15.0 30.0 2019 2020 2021 2022 2023 2024 2025 2019 2020 2021 2022 2023 2024 2025 Total Repair & Mainten

  17. Slide 17: Business performance

    Highlights Financial Review Market and Trading Review Business performance Group FY 2023 FY 2022 (£m) (£m) Revenue 371.5 350.9 +6% PBITA 46.0 43.3 +6% Operating margin 12.4% 12.3% Revenue Operating margin resilience Market conditions and profit growth against inflationary backdrop remain mixed Vp pl

  18. Slide 18: Business performance

    Highlights Financial Review Market and Trading Review Business performance UK FY 2023 FY 2022 (£m) (£m) Revenue 333.5 320.2 +4% PBITA 42.9 41.8 +3% Operating margin 12.9% 13.1% Rail, Transmission, No change in non residential Positive Housebuilding until Q4 AMP7 construction which Re-based at lower

  19. Slide 19: Business performance

    Highlights Financial Review Market and Trading Review Business performance International FY 2023 FY 2022 (£m) (£m) Revenue 38.1 30.7 +24% PBITA 3.1 1.5 +105% Operating margin 8.1% 4.9% Strong revenue growth from recovering Improved earnings quality energy, mining and defence Vp plc | The Equipment R

  20. Slide 20: Rental fleet investment

    Highlights Financial Review Market and Trading Review Rental fleet investment FY 2023 FY 2022 (£m) (£m) UK 53.7 55.2 International 6.2 4.6 Total fleet investment 59.9 59.8 Disposal proceeds (24.9) (17.8) Net expenditure on fleet 35.0 42.0 Gross capex at same level as prior Emphasis on investing in c

  21. Slide 21: ESG Initiatives

    Highlights Financial Review Market and Trading Review ESG Initiatives  Medium term roadmap to net zero  £15m of fleet capex on green, published substitutional, products  Science Based Targets (SBTi) submitted for  Large proportion (>50%) of fleet is zero validation emission at point of use  ISO

  22. Slide 22: Outlook

    Highlights Financial Review Market Marketand andTrading TradingReview Review Outlook • Markets remain stable into new financial  Focus maintained on cost management year  Sustainable solutions continue to drive • Infrastructure positive in Rail, Water and investment decisions on fleet Transmission

  23. Slide 23: Q & A Thank you

    Q&A Thank you Dean Wellington MEP Rainham branch Vp plc | The Equipment Rental Specialist | 23

  24. Slide 24: UK Construction Market – Forecast 2023

    UK Construction Market – Forecast 2023 Source: Experian UK Construction Forecast Spring 2023 Housing 24% Non-Residential Public 21% Private 3% industrial 4% Public 5% Private Private Total Forecast UK Commercial 12% 21% Construction output for 2023 is £178.8bn Infrastructure This is a forecast decli

  25. Slide 25: Net Working Capital

    Net Working Capital FY 2023 FY 2023 FY 2022 Capital Movement Cashflow movement (£m) (£m) creditors (£m) Inventories 8.9 7.9 (1.0) (1.0) Trade and other receivables 81.6 76.1 (5.5) (5.5) Income tax receivable 0.7 - (0.7) (0.7) Trade and other payables (72.2) (80.7) (8.5) (3.5) (12.0) Provisions (1.6)

  26. Slide 26: IFRS16 impact on profit

    IFRS16 impact on profit FY 2023 FY 2023 FY 2023 FY 2022 excluding IFRS IFRS impact Reported Reported EBITDA £m 92.9 19.8 112.7 108.4 PBITA (and exceptionals) £m 46.0 2.8 48.8 46.3 Financial expense £m (5.5) (3.1) (8.6) (7.4) PBTA (and exceptionals) £m 40.5 (0.3) 40.2 38.9 EPS (adjusted) pence 58.6 (

  27. Slide 27: Dividends

    Highlights Financial Review Market and Trading Review Dividends Long Term View Dividend per share (pence) Full year Half year 40 37.5 36.0 35 30.2 30.5 30 26.0 25.0 25 22.0 20 18.9 16.5 15 14.0 10 5 10.5 11 8.2 8.5 5.4 6.0 6.8 3.6 5.0 0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

  28. Slide 28: Long Term Profit Trend

    Highlights Financial Review Market and Trading Review Long Term Profit Trend 50 47.1 46.8 45 40.6 * 40.5 40 38.9 34.9 35 29.8 30 26.8 25 23.3 20.1 20 15 25.9 25.9 21.2 20.2 21.5 17.2 18.7 10 16.2 12.8 8.6 5 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Vp plc | The

  29. Slide 29: Medium Term Environmental Roadmap

    Medium Term Environmental Roadmap MEDIUM TERM ROADMAP TO NET ZERO BY 2050 2023-2033 Vp plc | The Equipment Rental Specialist | 29

  30. Slide 30: Group businesses

    Group businesses Vp plc | The Equipment Rental Specialist | 30

  31. Slide 31: Group businesses

    Group businesses Vp plc | The Equipment Rental Specialist | 31

  32. Slide 32: Central House, Harrogate

    Central House Beckwith Knowle Otley Road Harrogate North Yorkshire HG3 1UD T 01423 533400 www.vpplc.com Vp plc Company Number 481833 Allan Smith & Michael Mathieson Vp plc | The Equipment Rental Specialist | 32 Airpac Rentals, Aberdeen

Vp — FY2023 Earnings Presentation on 6ix