Slide 1: Results for the year ended 31 March 2019
Results for the year ended 31 March 2019 The Equipment Rental Specialist
Slide 2: Agenda
Agenda Strategic Aim and Highlights 1. Strategic Aim and Highlights Market and Trading Review 2. Market and Trading Review 3. Financial Review Financial Review Vp plc | The Equipment Specialist | 2
Slide 3: Strategic Aim and Highlights
Strategic Aim and Highlights
Slide 4: Our aim is to create sustainable value
Our aim is to create sustainable value Strategic Aim and Highlights Resilient and First class proven model asset management Market and Trading Review UK & International Building on Specialist Rental core attributes Financial Review Vp plc | The Equipment Specialist | 4
Slide 5: A year of substantial progress
A year of substantial progress Strategic Aim and Highlights +15% +26% • UK division Excellent Revenue delivering Market and Trading Review profit growth growth strong results • Brandon £64m 14.5% integration going well Financial Review Rental fleet Return on capital investment Vp plc | The Equipment
Slide 6: Uninterrupted long term progress
Uninterrupted long term progress Strategic Aim and Highlights Revenue Profit before tax, amortisation and exceptional items 17% compound growth over 5 years 15% compound growth over 5 years 450 50 46.8 400 382.8 45 40.6 Market and Trading Review 350 303.6 40 34.9 300 35 248.7 29.8 250 30 26.8 205.6
Slide 7: Market and Trading Review
Vp pic Market and Trading Review
Slide 8: Key markets
Key markets Strategic Aim and Highlights Market and Trading Review Infrastructure Construction Housebuilding Oil & Gas Financial Review Vp plc | The Equipment Specialist | 8
Slide 9: Market dynamics
Market dynamics Strategic Aim and Highlights Revenue Growth on 2019 (£m) 2018 (£m) prior year Market segment Infrastructure* 135.7 113.9 +19% Construction 159.0 108.7 ** +46% Market and Trading Review Housebuilding 35.0 32.7 +7% Oil & Gas 32.2 23.7 +36% Other 20.9 24.6 -15% Total 382.8 303.6 +26% *
Slide 10: Business performance – Group
Business performance – Group Strategic Aim and Highlights 2019 (£m) 2018 (£m) Revenue 382.8 303.6 * +26% Market and Trading Review PBITA 51.6 44.0 +17% Operating margin 13.5% 14.5% * 13% excluding Brandon Strong UK 17% operating Core markets Brandon Integration performance profit growth supportive p
Slide 11: Business performance – UK
Business performance – UK Strategic Aim and Highlights 2019 (£m) 2018 (£m) Revenue 350.3 272.0 * +29% Market and Trading Review PBITA 49.9 43.0 +16% Operating margin 14.2% 15.8% * 14% excl. Brandon AMP 6 activity Brandon Hire Stable Rail volatility European - Groundforce Station integration housebui
Slide 12: Business performance – International
Business performance – International Strategic Aim and Highlights 2019 (£m) 2018 (£m) Revenue 32.5 31.6 +3% Market and Trading Review PBITA 1.7 1.0 +70% Operating margin 5.2% 3.2% Modest recovery underway at Further progress for TR Group Airpac Bukom - Australia and Malaysia positive Financial Revie
Slide 13: Rental fleet investment
Rental fleet investment Strategic Aim and Highlights 2019 (£m) 2018 (£m) UK 57.4 59.8 International 6.4 5.1 Market and Trading Review Total fleet investment 63.8 64.9 Disposal proceeds (20.0) (18.5) Net expenditure on fleet 43.8 46.4 Investment for growth into UK capex static but change Internationa
Slide 14: Acquisition post year end
Acquisition post year end Strategic Aim and Highlights May 2019 - Sandhurst Limited • Specialist attachments rental Market and Trading Review • Consideration £3.325m • 5 locations • Complementary to UK piling business Financial Review Vp plc | The Equipment Specialist | 14
Slide 15: Outlook
Outlook Strategic Aim and Highlights New financial year trading in line with expectation…. Market and Trading Review • Growth rate will be more modest • Infrastructure – expected to stay busy • International markets stable with fresh initiatives • Housebuild stable • Oil & gas offer expanding to emb
Slide 16: Financial Review
pic Financial Review
Slide 17: Financial highlights – significant growth
Financial highlights – significant growth Strategic Aim and Highlights 2019 (£m) 2018 (£m) Market and Trading Review Revenue 382.8 303.6 +26% EBITDA 101.4 84.3 +20% Depreciation (49.8) (40.3) +24% EBITA 51.6 44.0 +17% Interest (4.8) (3.4) PBTA (and exceptionals) 46.8 40.6 +15% Exceptional items 8.6
Slide 18: Earnings per share and dividend per share
Earnings per share Strategic Aim and Highlights Dividend per share (pence) 35 30.2 Market and Trading Review 30 26.0 25 22.0 2019 2018 18.9 20 16.5 Dividend per share 30.2p 26.0p +16% 15 10 Dividend cover 3.2x 3.3x – 5 EPS adjusted * 95.1p 84.9p +12% 0 2015 2016 2017 2018 2019 Financial Review * Pre
Slide 19: ROACE – robust
ROACE – robust Strategic Aim and Highlights 20 18 16.2% 16.3% 16.0% 16 14.8%* 14.5%* Market and Trading Review 14 12 10 8 WACC 6 4 Financial Review 2 0 2015 2016 2017 2018 2019 * 16% excluding Brandon Vp plc | The Equipment Specialist | 19
Slide 20: Balance sheet
Balance sheet Strategic Aim and Highlights 2019 (£m) 2018 (£m) Market and Trading Review Property, plant and equipment 248.7 239.7 Intangible assets/goodwill 89.7 94.3 Net working capital 4.3 6.7 Other (5.7) (7.1) Net debt (168.1) (179.2) Net assets 168.9 154.4 Financial Review Vp plc | The Equipmen
Slide 21: Strong cash generation
Strong cash generation Strategic Aim and Highlights 2019 (£m) 2018 (£m) EBITDA 101.4 84.3 +20% Market and Trading Review Cash from operations 92.7 73.6 Net capital expenditure (54.6) (53.1) Interest and tax (12.8) (10.4) Acquisitions - (49.7) Dividends (10.9) (9.0) Other (3.3) (1.2) Debt acquired -
Slide 22: Net debt and facilities – headroom
Net debt and facilities – headroom Strategic Aim and Highlights Facilities Market and Trading Review 2019 (£m) 2018 (£m) RCF ends May 2020 65.0 65.0 RCF ends December 2021 135.0 135.0 Total RCF 200.0 200.0 Overdraft 7.5 5.0 Actual borrowing net debt 168.1 179.2 Headroom 39.4 25.8 Financial Review Vp
Slide 23: Significant headroom against covenants
Significant headroom against covenants Strategic Aim and Highlights EBITA Interest Cover > 3 times Net Debt / EBITDA < 2.5 times Market and Trading Review 20.0 3.0 18.0 15.24 2.5 16.0 14.20 14.0 13.00 1.89 2.0 12.0 11.35 11.21 1.62 1.45 1.39 10.0 1.5 1.24 8.0 6.0 1.0 4.0 Financial Review 0.5 2.0 0.0
Slide 24: Supplementary Schedules
Supplementary Schedules
Slide 25: Effective rate of tax reconciliation
Effective rate of tax reconciliation 2019 (%) 2018 (%) Standard rate 19.0 19.0 Impact of tax rate change 0.3 (2.7) Permanent disallowables 3.1 0.9 Chattels (1.2) (1.2) Prior year adjustments (0.6) 0.6 Non-qualifying depreciation and amoritsation 1.2 0.7 Overseas tax rate 0.9 0.5 Impairment of intang
Slide 26: Group history – 1954 to date
Group history – 1954 to date 2019 Acquisition of 2016 Sandhurst Acquisition of Higher Access 2014 and TR Pty 2007 Vp celebrates (Australia) MEP 60 years acquired 2005 2000 TPA and ESS UK Forks acquired 1996 division Cannon created Tool Hire acquired 2017 1982 Exit from Acquisition US powered USA of
Slide 27: Divisions
Divisions UK Rough terrain material handling equipment and tracked access platforms Excavation support systems and specialist products Portable roadway and temporary access solutions Tool and equipment hire Specialist safety, survey, communications and test measurement Mechanical, electrical and low
Slide 28: Central House, Harrogate contact details
Central House, Beckwith Knowle Otley Road, Harrogate North Yorkshire, HG3 1UD T 01423 533400 www.vpplc.com Vp plc Company Number 481833