Zigup PLC · LSE:ZIG
Zigup — Redde Northgate — H1 2024 Earnings Presentation
30 slides from Zigup's earnings presentation, December 2023
Slide 1: Interims review: Introduction to Group
Interims review Introduction to Group December 2023
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Redde Northgate Plc (the “Company” and, together with its subsidiaries, the “Group”). For the purposes of this notice, “Presentation” means this document, its contents or any part of it, any oral presentation, any question or ans
Slide 3: Contents
Pages Contents Interims review 4-12 Financial review 13-21 Business introduction 22-30 3
Slide 4: FY 2024 H1 Overview: financial performance
FY 2024 H1 Overview: financial performance Underlying Trading Revenues: + 16.9% to £733.8m Revenue (£m) PBT (£m) EBIT: + 23.1% to £115.0m 733.8 99.1 PBT: + 18.3% to £99.1m +16.9% +18.3% EBITDA +10.7% to £220.0m HY 2023 HY 2024 HY 2023 HY 2024 ROCE: +1.3 ppt increase to 14.8% Interim dividend policy:
Slide 5: FY 2024 H1 Overview: continued growth in underlying businesses
FY 2024 H1 Overview: continued growth in underlying businesses Strong operational performance Strategic progress Revenue growth drivers Delivering on strategic goals Claims & repair: Benefitting from increased volumes Integration: Specialist Platform momentum: and newer contracts going live/reaching
Slide 6: Current environment
Current environment Market Rental demand strong Supply chain consolidation still a in both geographies key insurer focus Sustained interest in value- Repair capacity easing but added services still a market challenge Fleet supply Greater OEM dialogue suggests visibility improvement in 2024, but stil
Slide 7: Looking forward
Looking forward Investment proposition H2 Outlook Continue to deliver on strategic goals Enjoying strong demand Platform and business momentum with healthy pipeline Board confidence in Group’s prospects Strategy is delivering Full year earnings to be modestly ahead of market consensus Business Stron
Slide 8: Vehicle supply
Vehicle supply Spain UK LCV Registration Data LCV Registration Data LT ave 2020 2021 2022 2023e LT ave 2020 2021 2022 2023e 190k 158k 151k 119k 141k 370k 292k 355k 282k 328k Source: DGT – Dirección General de Tráfico. 2023e annualised from 10 months actuals Source: SMMT LH-drive market greater suppl
Slide 9: Strategic progress: growing long-term contracts
Strategic progress: growing long-term contracts H1 Redde progress Growth reflects greater activity within contracts together with product extensions and new contracts • Higher levels of fleet accident mgmt. claims Strategy of maximising our share of total claim through multi • Growth in run rate of
Slide 10: Strategic progress: expanding footprint & capacity
Strategic progress: expanding footprint & capacity UK&I Sites Spanish Sites H1: FMGRS bodyshops x2, Inverness rental branch H1: New service centre & branch opened – geographic spread H2: London rental/service branch enhancement, further FMGRS sites H2: 2 new key urban branches planned – capacity exp
Slide 11: Platform expansion: delivering growth opportunities
Platform expansion: delivering growth opportunities Growing market presence in specialist segment Integration delivering platform opportunities Broadening product offering & value-added services Near-term opportunities with both NVH and FMG customer base Lev eraging broader sales & platform infrastr
Slide 12: Financial Review
Financial Review 12
Slide 13: FY 2024 H1 Overview: underlying group performance
FY 2024 H1 Overview: underlying group performance Revenue EBIT Profit before tax EPS +16.9% +23.1% +18.3% +18.9% HY 2024: £733.8m HY 2024: £115.0m HY 2024: £99.1m HY 2024: 33.4p HY 2023: £627.6m HY 2023: £93.4m HY 2023: £83.7m HY 2023: 28.1p EBITDA Net debt & leverage ROCE DPS +10.7% +14.2% +1.3 ppt
Slide 14: Group revenue waterfall HY 2023-24
Group revenue waterfall HY 2023-24 HY Comments £108.8m £911.3m £86.0m • UK&I rental revenue +4.4%, ave. VOH -6.8% £696.3m £7.7m £12.5m • Spain rental revenue +10.2%, ave. VOH +4.3% • Redde revenue (exc vehicle sales) +25.7% including new contracts • UK&I vehicle sales revenue +163% • Spain vehicle s
Slide 15: Group underlying profit waterfall HY 2022-23
Group underlying profit waterfall HY 2022-23 HY Comments Disposal profit £5.4m £0.5m £10.0m £99.1m • Underlying PBT £(6.3)m £3.9m £1.9m excluding disposals +9% £83.7m • UK&I rental margin £34.7m 16.3%, + 0.7ppt £24.7m • Spain rental margin 20.8%, + 0.4ppt • Disposal profits reduced £64.4m in UK&I, i
Slide 16: Capital allocation – cash flow priorities
Capital allocation – cash flow priorities Leverage approach Capital allocation priorities Cash flow reordered to reflect priorities H1 2024 H1 2023 Change Funding £m £m £m Strong cash generation 1 organic growth Underlying EBITDA 220.0 198.8 21.2 Net replacement capex1 (103.5) (53.1) (50.4) Follow c
Slide 17: Well-financed to drive sustainable shareholder value
Well-financed to drive sustainable shareholder value HY 2023 HY 2022 Net debt £755.0m £661.3m Fleet assets £1.2bn £1.1bn • Strong balance sheet, £1.23bn of vehicle assets 121.0 Net debt / EBITDA 1.6x 1.6x • Flat leverage Target leverage range of 1-2x • Average borrowing cost 3.5% Debt headroom £236m
Slide 18: Northgate UK&I
Northgate UK&I HY 2024 HY 2023 % change £m £m Key Highlights • Rental margin of 16.3%, at Revenue – Vehicle hire 192.3 184.1 4.4% sustainable level • Restricted vehicle supply held back Rental profit 31.4 28.8 9.2% VOH (-6.8%) • Lower VOH offset by higher revenue Rental margin 16.3% 15.6% 0.7ppt per
Slide 19: Northgate Spain
Northgate Spain HY 2024 HY 2023 % change £m £m Key Highlights Revenue – Vehicle hire 135.2 122.7 10.2% • Rental margin 20.8% remains strong and in line with prior period Rental profit 28.1 25.1 12.3% • Improved vehicle supply increased VOH (+4.3%) and disposal volume (+154%) Rental margin 20.8% 20.4
Slide 20: Redde
Redde HY 2024 HY 2023 % change Key Highlights £m £m • Increased volumes from existing Revenue – Claims and customers & new contracts launched 416.6 331.4 25.7% services • EBIT up 28.7%, on higher activity Gross profit 82.0 70.4 16.4% supported by 12% increase in ABP labour rates Gross margin 19.7% 2
Slide 21: Business Introduction
Business Introduction 21
Slide 22: Overview of Redde Northgate
Overview of Redde Northgate The UK’s leading Largest purchaser of LCVs integrated mobility in UK and Spain 40 years in business solutions provider (c.30k vehicles per annum ) 175 branches across >130,000 Owned Fleet UK, Ireland & Spain Member of the FTSE 250 >700,000 Managed Vehicles FY24 H1 Underly
Slide 23: What we do
| What we do Vehicle provision Fleet support Management of the performance, compliance and maintenance of commercial fleets such as service scheduling, telematics, driver liaison, training and downtime management. Additional fleet support services together with EV charging and solar installation and
Slide 24: Delivering services across the vehicle lifecycle
Delivering services across the vehicle lifecycle 24
Slide 25: Breadth of related services
Breadth of related services Integrated platform of related services Leveraging breadth & scale of mobility platform No major gaps in core product & services offering Potential to explore adjacencies 25
Slide 26: Integrated Mobility Solutions: Delivering for customers
Integrated Mobility Solutions: Delivering for customers Differentiated customer offering Simple access, multiple touchpoints 24/7 Greater flexibility and responsiveness Functioning seamlessly as a combination Increasing cross-platform customer efficiencies as scale grows 26
Slide 27: Our customers
Our customers Corporates from blue-chip to SMEs Public Sector Renting vehicles to corporate customers from the We are an accredited Public Sector provider through largest of blue chips through to SMEs a number of Framework Agreements A broad cross section of industries from support Providing rental
Slide 28: Our rental customers
Our rental customers UK Customer profile Spanish Customer profile % Fleet % Fleet Sectors Sectors Sub-sectors VoH VoH Construction, infrastructure Construction 10-15% ea Facilities Mgmt/Civil Engineering 20-30% ea Support services Rental services, safety, maintenance, health Specialist construction
Slide 29: Our locations
Our locations 29 As at July 2023
Slide 30: Corporate website
Corporate website Our geographical footprint Our customer solutions Corporate website Enhanced corporate website More information on RN businesses & strategy Includes video & social media content on operations. Email notification alerts Email alerts - Redde Northgate plc 30