Slide 1: Interim Results for the period ended 30 September 2021 (H1 2022)
Interim Results for the period ended 30 September 2021 (H1 2022) The Equipment Rental Specialist
Slide 2: Agenda
Agenda Highlights 1. 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
VP, pic Highlights
Slide 4: Highlights
Highlights Strategic Aim and Highlights Market leading profit margins Strong recovery in trading catalysing profitable reinvestment into the fleet Excellent performance driven by infrastructure and buoyant house building market Market and Trading Review Overall demand in commercial construct
Slide 5: Headline Numbers
Headline Numbers Strategic Aim and Highlights Revenues PBTA £176.1m £20.2m 24% ahead of comparative period Material improvement in profits and margins Market and Trading Review Recovery momentum maintained Return on Average Net Debt Capital Employed £131.7m 13.5% Increased by £9.8m Financial Review
Slide 6: Restoration of long term growth trend underway: Revenue
Restoration of long term growth trend underway Strategic Aim and Highlights Revenue 400 382.8 362.9 * 355.0 350 303.6 308.0 300 Market and Trading Review 248.7 250 208.7 205.6 200 183.1 167.0 150 100 50 Financial Review 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 H1 202
Slide 7: Restoration of long term growth trend underway: Profit before tax
Restoration of long term growth trend underway Strategic Aim and Highlights Profit before tax, amortisation and exceptional items £millions 50 46.8 47.1 45 40.6 40 * 36.7 Market and Trading Review 34.9 35 29.8 30 26.8 25 23.3 20.1 20 17.4 15 10 Financial Review 5 0 FY 2013 FY 2014 FY 2015 FY 2016 FY
Slide 8: Market and Trading Review
Vp ple Market and Trading Review
Slide 9: Core markets
Core markets Strategic Aim and Highlights Revenue Key market segments Market exposure H1 2022 H1 2021 Growth on (£m) (£m) prior year Infrastructure* 40% 69.7 56.8 23% Market and Trading Review Construction 39% 69.5 54.8 27% Housebuilding 9% 15.0 12.3 22% Energy 7% 11.7 9.8 19% Other 5% 10.2 8.4 21%
Slide 10: Business performance – Group
Business performance – Group Strategic Aim and Highlights H1 2022 (£m) H1 2021 (£m) Revenue 176.1 142.1 +24% Market and Trading Review PBITA 22.5 10.8 +108% Operating margin 12.8% 7.6% Incremental Revenue Strong performance with Good revenue growth on more potential as certain Financial Review Profi
Slide 11: Business performance – UK
Business performance – UK Strategic Aim and Highlights H1 2022 (£m) H1 2021 (£m) Revenue 160.8 128.9 +25% Market and Trading Review PBITA 21.8 9.9 +120% Operating margin 13.6% 7.5% Infrastructure Construction Cost savings in 2021 Housebuilding Strengths: HS2 Strengths: RMI maintained into 2022 : Bus
Slide 12: Business performance – International
Business performance – International Strategic Aim and Highlights H1 2022 (£m) H1 2021 (£m) Revenue 15.3 13.2 +16% PBITA Market and Trading Review 0.7 0.9 -22% Operating margin 4.6% 6.8% Steady recovery in Australia, Energy markets remain impacted by New Zealand and Malaysia despite cross border mob
Slide 13: Rental fleet investment
Rental fleet investment Strategic Aim and Highlights H1 2022 (£m) H1 2021 (£m) UK 29.1 13.1 International 2.6 1.5 Market and Trading Review Total fleet investment 31.7 14.6 Disposal proceeds (8.2) (8.5) Net expenditure on fleet 23.5 6.1 Strong emphasis on eco friendly Capital commitments of Strong c
Slide 14: Environmental Initiatives
Environmental Initiatives Strategic Aim and Highlights Group commitment to Science Based Targets (SBTi) Short term (2021-2025) road map in place Wide range of new products introduced to the rental fleet including: Solar panel lighting fleet Cordless Tools Market and Trading Review Electr
Slide 15: Outlook
Outlook Strategic Aim and Highlights Vp continues to deliver market leading Investment in technology – digital quality of earnings - ROCE and margin solutions for customers and operations alike Acceleration of AMP7 (Water) and CP6 (Rail) activity provides large opportunity Investing in our p
Slide 16: Financial Review
Financial Review
Slide 17: Financial highlights – continuing recovery
Financial highlights – continuing recovery Strategic Aim and Highlights H1 2022 H1 2021 % FY 2021 £m £m change £m Revenue 176.1 142.1 +24% 308.0 EBITDA 44.5 34.1 +30% 72.7 Market and Trading Review Depreciation (22.0) (23.3) -6% (45.0) EBITA * 22.5 10.8 +108% 27.7 Interest * (2.3) (2.2) (4.4) PBTA (
Slide 18: Earnings per share and dividends
Earnings per share and dividends Strategic Aim and Highlights H1 H1 2022 2021 Dividend per share pence 10.5 - Market and Trading Review Dividend cover times 3.6x - EPS adjusted * pence 37.7 17.4 * Pre amortisation and exceptionals IFRS16 Interim dividend of 10.5 pence Financial Review Reflects r
Slide 19: Dividends – Long Term View
Dividends – Long Term View Strategic Aim and Highlights Dividend per share (pence) 35 30.2 30.5 30 26.0 25.0 25 Market and Trading Review 22.0 20 18.9 16.5 15 14.0 12.3 10 5 6.0 8.2 8.5 10.5 6.8 5.0 5.4 3.3 3.6 Financial Review 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 202
Slide 20: ROACE – long term quality of earnings
ROACE – long term quality of earnings Strategic Aim and Highlights 20 18 16.2% 16.3% 16.0% 16 14.8% 14.5% 14.5% 14 13.3% 13.5% 13.5% 12 Market and Trading Review 10 9.2% 8 WACC 6 4 2 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 H1 2022 Financial Review Temporary Covid
Slide 21: Balance sheet - strength
Balance sheet - strength Strategic Aim and Highlights H1 2022 H1 2021 FY 2021 £m £m £m Hire Fleet 213.7 209.1 206.0 Other fixed assets 27.1 28.4 27.9 Intangible assets / goodwill 62.6 73.1 64.4 Market and Trading Review Working capital (2.3) (16.6) (12.3) Other (9.3) (8.2) (8.6) Net debt (131.7) (11
Slide 22: Strong cash generation
Strong cash generation Strategic Aim and Highlights H1 2022 H1 2021 FY 2021 £m £m £m EBITDA 44.5 34.1 72.7 Working capital (9.4) 25.5 20.2 Profit on sale (3.4) (3.6) (4.3) Market and Trading Review Capital expenditure (34.9) (18.7) (46.5) Proceeds from disposals 8.2 8.5 17.5 Interest (2.3) (2.3) (4.
Slide 23: Net debt and facilities - generous headroom
Net debt and facilities - generous headroom Strategic Aim and Highlights H1 2022 FY 2021 £m £m Private placement matures Jan 2027 65.0 65.0 Market and Trading Review Pricoa shelf matures April 2028 28.0 - RCF matures June 2024 / December 2021 90.0 135.0 Total committed facilities 183.0 200.0 Overdra
Slide 24: Robust headroom against covenants
Robust headroom against covenants Strategic Aim and Highlights 18.0 EBITA Interest Cover > 3 times Net Debt / EBITDA < 2.5 times 3.0 16.0 14.0 2.5 12.0 2.0 Market and Trading Review 10.0 10.58 1.89 11.35 11.21 1.5 8.0 9.65 1.62 1.65 1.62 6.0 1.49 1.0 6.66 4.0 0.5 2.0 0.0 0.0 Financial Review FY 18 F
Slide 25: Supplementary Schedules
Supplementary ae Schedules i
Slide 26: Net Working Capital
Net Working Capital Cashflow H1 2022 FY 2021 movement £m £m £m Inventories 6.8 7.3 0.5 Trade and other receivables 79.6 66.8 (12.8) Trade creditors, accruals, other (88.3) (87.0) 1.3 Net working capital (1.9) (12.9) (11.0) Capital creditors movement 1.1 Other cashflow 0.5 Working capital cashflow (9
Slide 27: IFRS16 impact on profit
IFRS16 impact on profit H1 2022 H1 2022 H1 2022 H1 2021 excluding IFRS IFRS impact Reported Reported EBITDA £m 44.5 10.0 54.5 47.4 PBITA (and exceptionals) £m 22.5 1.5 24.0 12.4 Financial expense £m (2.3) (1.5) (3.8) (3.9) PBTA (and exceptionals) £m 20.2 (0.0) 20.2 8.5 EPS (adjusted) pence 37.7 (0.1
Slide 28: Group history – 1954 to date
Group history – 1954 to date 2019 Acquisition 2016 of Acquisition of Sandhurst Higher Access 2014 and TR Pty 2007 Vp celebrates (Australia) MEP 60 years 2021 acquired Acquisition of 2005 M&S Hire 2000 TPA and ESS UK Forks acquired 2017 1996 division Cannon Acquisition of created Brandon Hire Tool Hi
Slide 29: Roadmap & Milestones
Roadmap & Milestones Vp plc | The Equipment Rental Specialist | 29
Slide 30: 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 31: Group businesses
Group businesses Vp plc | The Equipment Rental Specialist | 31
Slide 32: Group businesses
Group businesses Vp plc | The Equipment Rental Specialist | 32
Slide 33: Central House, Beckwith Knowle, Otley Road, Harrogate
Central House, Beckwith Knowle Otley Road, Harrogate North Yorkshire, HG3 1UD T 01423 533400 www.vpplc.com Vp plc Company Number 481833 Vp plc | The Equipment Rental Specialist 33