Speedy Hire Plc · LSE:SDY
Speedy Hire — H1 FY2017 Earnings Presentation
24 slides from Speedy Hire's earnings presentation, November 2016
Slide 1: Interim results for the period ending 30 September 2016
Interim results for the period November 2016 ending 30 September 2016 Russell Down, Chief Executive
Slide 2: Results significantly improved; recovery well established
Results significantly improved; recovery well established Financial highlights Pre-disposal revenue increased by 5.2% to £171.4m (2015: £162.9m) Operating profit of £8.4m (2015: £4.5m) up 86.7% Adjusted profit before tax increased to £6.8m (2015: £2.0m) Earnings per share increased to 0.81 pence (20
Slide 3: Strategy
Strategy Customer Innovation Sustainable Relationships excellence Differentiation growth Provide first class Innovate and do customer service so things differently, Cultivate strong client Sustainable year on that everything we do and better than our relationships year growth is focussed on the comp
Slide 4: Financial update
November 2016 Financial update Chris Morgan, Group Finance Director
Slide 5: Summary financials
Summary financials H1 H1 FY2017 FY2016 Change FY2016 £m £m % £m Revenue 187.1 165.0 13.4% 329.1 Excluding disposals, revenue grew 5.2%. 1.4% Partnered services revenue grew 13.0% Gross profit* 95.4 94.1 184.2 Gross margin % 51.0% 57.0% 56.0% Revenue from planned disposals was £15.7m (H1 16: £2.1m) E
Slide 6: Recovery well established
Recovery well established Year on year movement 15.0 % 10.0 % Strategy launched October 2015 5.0 % Pre disposal revenue increased 5.2% YTD - • Q1 revenue increased 1.6% (5.0)% • Q2 revenue (10.0)% increased 8.9% (15.0)% (20.0)% FY15 FY16 FY17 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 J
Slide 7: Segmental analysis – UK & Ireland
Segmental analysis – UK & Ireland H1 H1 FY2017 FY2016 Change FY2016 £m £m % £m Revenue growth 3.9% before disposals, Q2 growth Revenue 174.8 155.2 12.6% 308.7 7.7% Gross margin % 53.0% 59.3% 58.1% Planned disposals revenue £15.7m (H1 16: £2.1m) including £12.1m of heavy plant EBITDA* 30.4 26.6 14.3%
Slide 8: Segmental analysis – International
Segmental analysis – International H1 H1 FY2017 FY2016 Change FY2016 £m £m % £m International revenue represents 6.6% of the Revenue 12.3 9.8 25.5% 20.4 Group Gross margin % 21.9% 22.5% 21.7% Services national oil and gas clients in UAE EBITDA* 2.3 1.3 76.9% 3.2 Significant portion of revenue throug
Slide 9: Balance sheet
Balance sheet 30 30 31 Sept Sept March 2016 2015 2016 £m £m £m Strategic reduction in hire fleet reflects a focus on Intangibles & JV 7.1 52.2 6.5 high returning assets; targeted additions and Property, plant and equipment disposal of under utilised assets 244.9 267.4 264.6 - Hire fleet 202.5 224.9
Slide 10: Cash flow
Cash flow H1 H1 FY2017 FY2016 FY2016 £m £m £m Cash generated from operations £23.8m (H1 Adjusted operating profit 8.4 4.5 10.0 16: £13.0m) Depreciation 22.0 21.1 43.1 Working capital outflow reflects increase in EBITDA 30.4 25.6 53.1 revenue in Q2 Exceptional costs (0.5) (14.2) (14.0) Significant re
Slide 11: Net debt reconciliation
Net debt reconciliation Financial period ended 30 September 2016 2015 £m £m Significant drop in net debt, reflecting asset Net debt 1 April 102.6 105.3 disposals and focus on cash management Cash from operations (23.8) (13.0) Facility headroom available £76.1m (March Interest paid 2.4 2.6 2016: £54.
Slide 12: Business update
November 2016 Business update Russell Down, Chief Executive
Slide 13: Strategy
Strategy Customer Innovation Sustainable Relationships excellence Differentiation growth Provide first class Innovate and do customer service so things differently, Cultivate strong client Sustainable year on that everything we do and better than our relationships year growth is focussed on the comp
Slide 14: Improving customer excellence
Improving customer excellence External review undertaken by customer service specialist Customer experience programme being implemented covering: 1. Brand proposition 2. Customer satisfaction 3. Internal advocacy and engagement 4. Systems, processes and management information 14 November 16
Slide 15: 1. Speedy brand proposition
1. Speedy brand proposition To become the best company in our sector to do business with, Vision and the best to work for To provide safe, reliable hire equipment and services to Mission enable successful delivery of customer projects Values Safe As One Innovative Driven 15 November 16
Slide 16: 2. Customer satisfaction
2. Customer satisfaction Real-time customer feedback reporting system introduced through an external agency Surveys undertaken at point of order confirmation, delivery and collection as well as on customer request Visibility of service levels through bespoke dashboards Performance reported at operat
Slide 17: 3. Internal advocacy and engagement
3. Internal advocacy and engagement Group headcount 3,542 (31 March 2016: 3,643); UK & Ireland headcount 3,067 (31 March 2016: 3,193) Renewed focus on training and apprenticeship schemes PDR launched for all employees in April 2016; six monthly updates Introduced group wide performance related bonus
Slide 18: 4. Systems, processes and management information
4. Systems, processes and management information System performance significantly improved Process review underway Better access to timely Management Information: • Asset utilisation • Engineering and logistics • Transport • ROCE Right equipment where and when it is needed Driving performance by uti
Slide 19: A culture of innovation
A culture of innovation Sustainable / innovative fleet additions; ‘Green Options’ New smart devices implemented • Paperless • GPS tracking • Built in camera Depot tablets being rolled out Updated website and app Building Information Management (BIM) 19 November 16
Slide 20: Strengthening relationships
Strengthening relationships Won and renewed a number of significant major contracts Sales teams restructured and closer aligned to operating divisions Increased customer engagement and communication Customer innovation days Tradepoint relationship broadening customer base Speedy Expo held November 2
Slide 21: Speedy Expo 2016
Speedy Expo 2016 Largest private hire show in the UK Employee conference 125 exhibitors Hundreds of new and innovative products Awards for supplier innovation Building relationships: • 700 Speedy delegates • 400 Customers • 500 Suppliers 21
Slide 22: Leading the industry in safety and sustainability
Leading the industry in safety and sustainability Best Health and Safety performance in the industry Lowest ever major accident rate RoSPA Gold Award for continuous improvement in accident and ill health prevention at work Mobile ‘Intelligent Safety’ trailer to deliver award winning safety campaigns
Slide 23: Outlook
Outlook Encouraging interim results confirm that recovery is well established Focussed on the strategic development of the business over the medium-term Driving a range of customer service initiatives to ensure that Speedy is competitively positioned to grow profitable market share Results for the f
Slide 24: Questions
Questions November 16