Speedy Hire Plc · LSE:SDY
Speedy Hire — H1 FY23 Earnings Presentation
18 slides from Speedy Hire's earnings presentation, November 2022
Slide 1: Half Year Results to 30 September 2022
HALF YEAR RESULTS TO 30 SEPTEMBER 2022 Achieving sustainable growth
Slide 2: Presentation team
Presentation team Dan Evans Paul Rayner Chief Executive Interim Chief Financial Officer 2
Slide 3: Highlights
Highlights • Resilient trading performance with continued revenue growth • 5.5% hire revenue growth • 29.0% services revenue growth • EBITDA remained broadly consistent year on year • PBT1 down 3.4% on H1 FY22; overperformance of the JV mitigating investment in overheads • EPS1 up 25.4% on H1 FY22 •
Slide 4: Financial update
Financial update Paul Rayner, Interim Chief Financial Officer
Slide 5: Continued revenue and earnings growth
Continued revenue and earnings growth HY23 HY22 Variance FY22 Highlights £m £m vs HY22 £m • Building on the momentum from FY22; Income Statement pre disposals revenue +13.8% ahead Revenue (pre disposals)1 212.4 186.6 13.8% 381.7 1,2 • PBT2 slightly down on H1 FY22 EBITDA 48.3 49.1 (1.6)% 99.3 PBT1,2
Slide 6: Continued revenue and earnings growth
Continued revenue and earnings growth Revenue HY23 HY22 Variance FY22 £m £m vs HY22 £m • Continued hire revenue growth supported by improved pricing Revenue1 214.8 188.6 13.9 % 386.8 • Services revenue increased through Customer Solutions (Partnered Services) and strong fuel and energy services sale
Slide 7: Profit bridge
Profit bridge Highlights • Hire revenue and margin improvement • Services revenue and margin impacted by increased fuel average selling price • Overheads increased by £11m • Inflationary pressures +£5m • Investment for growth in marketing, Retail and Trade, and ESG +£6m • Joint venture performance i
Slide 8: Resilient balance sheet
Resilient balance sheet 30 Sep 22 31 Mar 22 Hire fleet £m £m • Hire fleet additions of £30.5m (H1 FY22: £37.6m) Intangibles and joint venture 35.6 33.7 • 41% of additions in carbon efficient ECO products Hire fleet 234.4 226.9 • H1 utilisation was 54.1%, improving to 58.1% currently Other fixed asse
Slide 9: Cash flow
Cash flow Returns to shareholders £20m 100 13 Investment £22m 80 7 48 4 18 Net Debt (£m) 60 15 87 40 68 6 7 20 2 0 FY22 EBITDA Joint Venture Working Tax and Lease Net hire Net other Dividends Share HY23 capital Interest payments capex capex buyback Highlights • Strong operating cash before capex of
Slide 10: Capital allocation
Capital allocation Organic growth Paying dividends M&A activity Efficient balance sheet Policy • Investments to • Regular dividend • Funds available for • Committed to better enable us to payments in the acquisition with a maintaining net serve our range between focus on specialist debt to EBITDA cu
Slide 11: Strategy and business update
Strategy and business update Dan Evans, Chief Executive
Slide 12: Optimising growth markets
Optimising growth markets • Customer focused and sustainability led strategy, underpinned by appointment of Customer Success Director, ESG Director and Chief Digital Officer • Long-term contract wins and renewals across a variety of sectors • Well placed to maximise opportunities within major UK pro
Slide 13: Customer and revenue analysis
Customer and revenue analysis Hire revenue analysis Price and volume analysis H1 +5.5% National Regional & Local Total Q1 +5.2% Q2 +5.6% Revenue Rate Volume • Price increase implemented in April 2022 • Trusted by our National customers to help manage spend as part of long term • Commercial disciplin
Slide 14: Decade to Deliver
Decade to Deliver Sustainability • Asset: Investment in Eco products utilising electric, battery and renewable energy sources • Property: Industry-first innovation centre in Milton Keynes achieved EPC A+ energy rating • Fleet: Ongoing investment in electric and low carbon vehicles • Collaboration: W
Slide 15: The Speedy Expo: Showcasing our industry leadership
The Speedy Expo Showcasing our industry leadership • Largest private hire exhibition and conference in the UK • Over 1,700 colleagues, customers and suppliers came together to discover innovative and sustainable products and technologies • Demonstrated the growing relevance of ESG solutions and favo
Slide 16: Summary and outlook
Summary and outlook • Positive performance in the first half despite inflationary pressures • Healthy pipeline with new contract wins effective from the second half • Creation of Speedy Solutions supporting a combined services business • Cautious outlook amidst macroeconomic uncertainty • Resilient
Slide 17: Q&A
Q&A
Slide 18: Disclaimer
Disclaimer The information, opinions and statements contained in this presentation and any associated discussion (this “Presentation”) has been prepared by Speedy Hire PLC (the “Company”) and has not been independently verified. The Presentation is only intended for information and reference purpose