Van Elle Holdings Plc · LSE:VANL
Van Elle — FY2023 Earnings Presentation
18 slides from Van Elle's earnings presentation, July 2023
Slide 1: Total Foundation Solutions
TOTAL FOUNDATION SOLUTIONS. VAN ELLE HOLDINGS PLC FULL YEAR RESULTS 30 APRIL 2023
Slide 2: Presenters: Chief Executive Officer and Chief Financial Officer
Mark cutler| Chief executive Officer Graeme Campbell | Chief Financial Officer 2 VAN ELLE HOLDINGS PLC FULL YEAR RESULTS 30 APRIL 2023
Slide 3: Agenda
Agenda THE RESULTS Overview UK’S LARGEST GEOTECHNICAL Financial review STRATEGY, CURRENT TRADING AND outlook ENGINEERING CONTRACTOR 3 VAN ELLE HOLDINGS PLC FULL YEAR RESULTS 30 APRIL 2023
Slide 4: Results Overview
RESULTS Overview • Record revenues of £148.7m with growth of 19% on prior year (FY22: £124.9m) • Improved PBT, margins and ROCE: –Profit before tax increased to £5.4m (FY22: £3.6m) –Operating profit margin increased to 3.9% (FY22: 3.5%) –Return on capital employed increased to 12.2% (FY22: 9.4%) • F
Slide 5: Results Overview
RESULTS Overview • Strong balance sheet: –Net funds position (excl. IFRS16 lease liabilities) at 30th April 2023 of £7.5m (30 April 2022: £5.9m) –£1.3m hire purchase debt remaining at 30 April 2023 –Undrawn bank facility of up to £11m • Increased capital investment of £6.2m, primarily on new rigs, u
Slide 6: Group income statement
Group income statement 2023 2022 • Total revenue up 19% on FY22 £m £m Revenue 148.7 124.9 • Increased activity levels across all divisions Gross profit 40.1 34.1 – General Piling +41% 27.0% 27.3% – Specialist Piling & Rail +2% EBITDA 12.0 9.8 – Ground Engineering Services +18% • Gross margin % stabl
Slide 7: General Piling
General Piling 2023 2022 £m £m Revenue 54.8 39.0 Operating profit 3.4 1.8 • Robust performance in the residential and regional construction segments • Strong revenue growth delivered in the infrastructure segment, with activity on two major energy contracts (total value of approximately £26m) • Infl
Slide 8: Specialist Piling & Rail
Specialist Piling & Rail 2023 2022 £m £m Revenue 46.6 45.8 Operating profit 2.2 3.0 • Specialist Piling: – High activity levels in H1 – Impacted in H2 by Highways sector delays and cancellations – Medium term outlook remains very positive, including return of Highways opportunities and growing prese
Slide 9: Ground Engineering Services
Ground Engineering Services 2023 2022 £m £m Revenue 47.1 40.0 Operating profit 3.6 2.1 • Housing: – Very high activity levels – Focus on operational efficiency delivered further improvements to contract margins – High demand in H2 in advance of the new Part L Building Regulation changes in June 2023
Slide 10: Net Funds
NET FUNDS 2023 2022 Lease liabilities: £m £m £m Lease liabilities at 30 April 2022 6.9 Lease liabilities (8.5) (6.9) Hire purchase principal debt repaid (1.2) Cash and cash equivalents 8.9 7.0 IFRS 16 lease repayments (1.2) Net funds / (debt) 0.4 0.1 New hire purchase liabilities 1.5 Net funds excl.
Slide 11: Cash flow
Cash flow Primarily investment in rigs and transport fleet to expand capacity in New hire growth areas purchase financing to support capital investment FY22 final dividend: 1p Paid in October 2022 FY23 interim dividend: 0.4p Paid in March 2023 11 VAN ELLE HOLDINGS PLC FULL YEAR RESULTS 30 APRIL 2023
Slide 12: Strategic Progress - Highlights
STRATEGIC PROGRESS - HIGHLIGHTS Further strategic progress underpins future growth potential • Strong focus and good progress on major project and framework opportunities • Launch of Canadian rail subsidiary • Increased focus on the UK energy market, with progress on winning and delivering high volt
Slide 13: Current Trading and Outlook
Current Trading and Outlook • Activity levels in Q1 of FY2024 are strong • Healthy pipeline of opportunities across all divisions, primarily due to key framework agreements • Current market uncertainties in Housing and Highways expected to continue throughout FY2024, and potentially recover in FY202
Slide 14: Confident in achieving our medium-term financial targets
CONFIDENT IN ACHIEVING OUR medium-term financial targets Medium term financial targets Key Sector Opportunities • Rail – CP6 remains buoyant but dip expected ahead of CP7 frameworks currently being bid, offering wider opportunities. First Canadian projects commence H1 FY2024 5-10% ANNUAL Revenue gro
Slide 15: Medium-term targets: key risks and challenges
CONFIDENT IN ACHIEVING OUR medium-term financial targets Medium term financial targets Key Risks and Challenges • High interest rates, high inflation and cost-of-living crisis contributing to greater market uncertainty, particularly in the housebuilding sector 5-10% ANNUAL Revenue growth • Resource
Slide 16: Statistics
Statistics 2023 2022 Financial measures Revenue (£m) 148.8 124.9 Gross profit % 27.0% 27.3% Operating profit margin 3.9% 3.5% Overheads % (underlying) 23.6% 24.1% Capital expenditure (£’m) 8.7 4.9 Order book (£’m) 30.1 39.0 Operational measures Number of rigs 133 122 Average rig utilisation %* 61% 6
Slide 17: Q&A
Q&A 17 VAN ELLE HOLDINGS PLC FULL YEAR RESULTS 30 APRIL 2023
Slide 18: Disclaimer
Disclaimer This presentation has been prepared by or on behalf of Van Elle Holdings plc (“Van Elle”). The information set out in this presentation is By attending the presentation to which this document relates and/or by accepting this document you will be taken to have represented, not intended to