Slide 1: Results for the year ended 31 March 2022
Results for the year ended 31 March 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
Highlights
Slide 4: Strategic Aim and Highlights
Highlights Strategic Aim and Highlights Material growth in profits +67% Quality of earnings (ROCE) back to pre-Covid levels at 14.5% Infrastructure strength from HS2 and Transmission: AMP7 and rail slower but improving Market and Trading Review General construction mixed – strong repair & ma
Slide 5: Headline Numbers
Headline Numbers Strategic Aim and Highlights Revenues PBTA £350.9m £38.9m 14% growth on prior year 67% increase in profits Market and Trading Review at improved margins Return on Average Net Debt Capital Employed £130.6m 14.5% Increased by £8.7m Financial Review Significant increase in quality of e
Slide 6: Restoration of long term growth trend underway: Revenue
Restoration of long term growth trend underway Strategic Aim and Highlights Revenue 400 382.8 362.9 350.9 350 303.6 308.0 300 Market and Trading Review 248.7 250 208.7 205.6 200 183.1 167.0 150 100 Financial Review 50 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Slide 7: Restoration of long term growth trend underway: Profit
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 38.9 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 2
Slide 8: Market and Trading Review
Market and Trading Review
Slide 9: Core Markets
Core Markets Strategic Aim and Highlights Revenue Key market segments Market exposure FY 2022 FY 2021 Growth on (£m) (£m) prior year Infrastructure* 36% 129.3 115.0 12% Market and Trading Review Construction 41% 144.0 126.6 14% Housebuilding 7% 25.4 24.4 4% Energy 9% 30.0 23.9 26% Other 7% 22.2 18.1
Slide 10: UK Construction Output – Vp Core Markets Sectors
UK Construction Output – Vp Core Markets Sectors £bn New Infrastructure 50.0 New Housing £bn 35.0 45.0 30.0 40.0 25.0 20.0 35.0 15.0 30.0 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 New Non-Residential (*) Total Repair & Maintenance £bn 50 £bn 70 45 65 40 60 35 55 30 50 201
Slide 11: Business performance – Group
Business performance – Group Strategic Aim and Highlights FY 2022 FY 2021 (£m) (£m) Revenue 350.9 308.0 +14% Market and Trading Review PBITA 43.3 27.7 +56% Operating margin 12.3% 9.0% Incremental Revenue Much improved result despite Good revenue growth on Profit ‘drop through’ Financial Review some
Slide 12: Business performance – UK
Business performance – UK Strategic Aim and Highlights FY 2022 FY 2021 (£m) (£m) Revenue 320.2 281.3 +14% Market and Trading Review PBITA 41.8 27.1 +54% Operating margin 13.1% 9.7% Infrastructure, HS2 & Construction Housebuilding Margin improvement Transmission strong RMI busy consistent demand illu
Slide 13: Business performance – International
Business performance – International Strategic Aim and Highlights FY 2022 FY 2021 (£m) (£m) Revenue 30.7 26.7 +15% PBITA 1.5 0.6 +166% Market and Trading Review Operating margin 4.9% 2.1% Australia, New Zealand and Asia Pace of border openings slowed markets lagged UK and Europe in recovery but ener
Slide 14: Rental fleet investment
Rental fleet investment Strategic Aim and Highlights FY 2022 FY 2021 (£m) (£m) UK 55.2 35.6 Market and Trading Review International 4.6 4.6 Total fleet investment 59.8 40.2 Disposal proceeds (17.8) (17.5) Net expenditure on fleet 42.0 22.7 Financial Review Strong capex – mix of growth Strong emphasi
Slide 15: ESG Initiatives
ESG Initiatives Strategic Aim and Highlights Group commitment to Science Based Targets (SBTi) underpins our plan Short term (2021-2025) road map adopted and being delivered Investment in new rental fleet focused on ‘greener’ equipment solutions: Solar panel lighting fleet and charge pods W
Slide 16: Outlook
Outlook Strategic Aim and Highlights Vp continues to deliver market leading quality of Investment in learning and development for earnings measured by ROCE and margin colleagues The new financial year has started well Digital roadmap continues to evolve across the Group and providing a platf
Slide 17: Financial Review
VP, Financial Review 2 Alita
Slide 18: Financial highlights
Financial highlights Strategic Aim and Highlights FY 2022 FY 2021 % £m £m change Revenue 350.9 308.0 +14% EBITDA 88.9 72.7 +22% Market and Trading Review Depreciation (45.5) (45.0) -1% EBITA * 43.3 27.7 +56% Interest * (4.4) (4.4) PBTA (and exceptionals) 38.9 23.3 +67% Net margin 11.1% 7.6% Financia
Slide 19: Earnings per share and dividends
Earnings per share and dividends Strategic Aim and Highlights FY 2022 FY 2021 Dividend per share pence 36.0 25.0 Market and Trading Review Dividend cover times 2.0x 1.9x EPS adjusted * pence 71.2 46.8 * Pre amortisation and exceptionals IFRS16 Proposed final dividend 25.5 pence, making 36.0 pence
Slide 20: Dividends – Long Term View
Dividends – Long Term View Strategic Aim and Highlights Dividend per share (pence) 40 36.0 35 30.5 30.2 30 26.0 25.0 Market and Trading Review 22.0 25 18.9 20 16.5 14.0 15 12.3 10 5 6.0 6.8 8.2 8.5 10.5 5.4 5.0 3.3 3.6 Financial Review 0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 202
Slide 21: ROCE – in line with long term target
ROCE – in line with long term target Strategic Aim and Highlights 20 18 16.2% 16.3% 16.0% 16 14.8% 14.5% 14.5% 14.5% 14 13.3% 13.5% 12 Market and Trading Review 10 9.2% 8 WACC 6 4 2 0 Financial Review FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Strong recovery i
Slide 22: Balance sheet – further strengthened
Balance sheet – further strengthened Strategic Aim and Highlights FY 2022 FY 2021 £m £m Hire Fleet 216.6 206.0 Other fixed assets 30.9 27.9 Intangible assets / goodwill 62.4 64.4 Market and Trading Review IFRS16 net assets / liabilities (3.5) (4.3) Working capital 1.8 (11.6) Pension asset 2.7 2.2 De
Slide 23: Strong cash generation continues
Strong cash generation continues FY2022 FY 2021 £m £m EBITDA 88.9 72.7 Working Capital (12.5) 33.9 Profit on Sale ( 7.0) (4.3) Exceptional items - (15.2) Capital expenditure (68.7) (46.5) Proceeds from disposals 17.8 17.5 Acquisitions (2.7) (-) Interest (4.5) (4.7) Tax (6.3) (2.9) Dividends (14.0) (
Slide 24: Net debt and facilities – refinanced during the year
Net debt and facilities – refinanced during the year Strategic Aim and Highlights FY 2022 FY 2021 £m £m Private placement matures Jan 2027 65.0 65.0 Pricoa shelf matures April 2028 28.0 - Market and Trading Review RCF matures June 2024 / December 2021 90.0 135.0 Total committed facilities 183.0 200.
Slide 25: Robust headroom against covenants
Robust headroom against covenants Strategic Aim and Highlights 14.0 EBITA Interest Cover > 3 times Net Debt / EBITDA < 2.5 times 3.0 12.0 2.5 10.0 11.35 11.21 10.58 2.0 Market and Trading Review 10.12 8.0 1.89 1.5 6.0 1.62 1.65 1.62 6.66 1.0 1.43 4.0 2.0 0.5 0.0 0.0 Financial Review FY 18 FY 19 FY 2
Slide 26: Supplementary Schedules
Vp ple Supplementary Schedules
Slide 27: Net Working Capital
Net Working Capital FY 2022 FY 2021 FY 2022 £m £m Cashflow movement £m Inventories 7.9 7.3 (0.6) Trade and other receivables 76.1 66.5 (9.6) Trade and other payables (80.7) (83.5) (2.8) Provisions (1.5) (1.9) (0.4) Net working capital 1.8 (11.6) (13.4) Capital creditors movement 0.6 Other cashflow 0
Slide 28: IFRS16 impact on profit
IFRS16 impact on profit FY 2022 FY 2022 FY 2022 FY 2021 excluding IFRS impact Reported Reported IFRS EBITDA £m 88.9 19.5 108.4 96.7 PBITA (and exceptionals) £m 43.3 3.0 46.3 30.9 Financial expense £m (4.4) (3.0) (7.4) (7.8) PBTA (and exceptionals) £m 38.9 - 38.9 23.2 EPS (adjusted) pence 64.4 0.1 64
Slide 29: Group history – 1954 to date
Group history – 1954 to date 2019 Acquisition 2016 of Acquisition of Sandhurst Higher Access 2021 2014 and TR Pty 2007 Acquisition of Vp celebrates (Australia) MEP 60 years M&S Hire acquired 2005 2000 TPA and ESS UK Forks acquired 2017 1996 division Cannon Acquisition of created Brandon Hire Tool Hi
Slide 30: Roadmap & Milestones
Roadmap & Milestones Vp plc | The Equipment Rental Specialist | 30
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, Harrogate
Central House, Beckwith Knowle Otley Road, Harrogate North Yorkshire, HG3 1UD T 01423 533400 www.vpplc.com 33 Vp plc Company Number 481833 Vp plc | The Equipment Rental Specialist