Speedy Hire Plc · LSE:SDY
Speedy Hire — H1 FY2014 Earnings Presentation
33 slides from Speedy Hire's earnings presentation, November 2013
Slide 1: Maintaining A Consistent Strategy
Speedy Hire Plc Maintaining A Consistent Strategy Interim results for the six months ended September 2013
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation has been prepared to inform investment Nothing contained within this presentation or communicated professionals about Speedy Hire Plc (‘Speedy’), and does verbally should be construed as a profit forecast or profit not constitute an offer of securities or otherwise
Slide 3: Agenda
Agenda Financial Performance Year to Date Lynn Krige, Group Finance Director Building Momentum for the Future Steve Corcoran, Chief Executive Network Reconfiguration Update Lynn Krige, Group Finance Director Questions and Answer Session 3
Slide 4: Financial Performance Year to Date
Lynn Krige, Group Finance Director Financial Performance Year to Date
Slide 5: Financial Highlights
Financial Highlights Financial Highlights Six months to 30 September 2013 2012 Change £m £m Revenue 169.8 169.1 0.4% EBITDA 32.7 33.6 (2.7%) EBITDA % 19.3% 19.9% EBITA 10.2 10.4 (1.9%) EBITA % 6.0% 6.2% PBT* 6.8 6.6 3.0% Adjusted earnings per share* 1.12p 1.10p 1.8% Dividend per share 0.26p 0.22p 18
Slide 6: Financial Position
Financial Position Financial Position As at 30 September 2013 2012 Change £m £m Property, plant & equipment 259.9 250.8 3.6% Debtor days – UK & Ireland 63.4 days 69.2 days Bad debt charge as a % of revenue 1.58% 1.51% Net debt 79.3 82.6 Gearing 32.9% 35.4% Net debt: EBITDA 1.09x 1.23x Shareholders’
Slide 7: Segmental Analysis - UK & Ireland
Segmental Analysis Segmental - UK & -Ireland Analysis UK & Ireland Six months to 30 September 2013 2012 Change EBITDAmargin EBITDA margin £m £m Revenue 158.8 160.6 (1.1%) EBITDA 32.9 34.2 (3.8%) 21.3% 20.7% 21.3% EBITDA % 20.7% 21.3% 20.7% EBITA 13.1 13.8 (5.1%) 30 30 Sept Sept2013 2013 3030 Sept Se
Slide 8: Segmental Analysis - International
Segmental Analysis Segmental - International Analysis - International EBITDA margin Six months to 30 September 2013 2012 Change EBITDA margin £m £m Revenue 11.0 8.5 29.4% 28.2% 2.6 28.2% EBITDA 2.4 8.3% 23.4% 23.6% EBITDA % 23.6% 28.2% EBITA 0.4 0.3 33.3% 3030Sept Sept 2013 2013 30 Sept 2012 30 Sept
Slide 9: Cash Flow: Movement in net debt
Cash Flow Cash flow Group excluding International International 90 0.2 80 2.7 2.4 6.2 Movement in net debt (£m) 70 5.1 7.9 4.2 60 29.2 35.8 50 40 - 6.8 79.3 72.4 73.6 30 20 10 0 1 To update UK - cash generation funding investment; International - investing for growth 9
Slide 10: Building Momentum for the Future
Steve Corcoran, Chief Executive Building Momentum for the Future
Slide 11: H1 Momentum Driving H2
H1 Momentum Driving H2 H1 Activity H2 Benefit • No real improvement in general Construction market, • Improving trend in underlying Construction activity excluding Housing • National Grid mobilisation programme underway • F ully mobilised - benefits due to flow through in H2 • Several contracts due
Slide 12: Post Period End Contract Wins
Post Period End Contract Wins Gatwick Airport* Growth from: Keepmoat Securing new and developing existing revenues Morrison Utilities* Northern Gas Networks* in chosen markets: Perenco Siemens - Clear market leader in the UK - Growth from major contracts in the Infrastructure and Industrial markets
Slide 13: UK Contract Case Study - Perenco
UK Contract Case Study - Perenco Who Are Perenco? Independent oil & gas company Operate in 16 countries across Northern Europe, Africa, South America & Southeast Asia Conduct both onshore and offshore operations Current production 375,000 barrels per day of oil equivalent In the UK operate offshore
Slide 14: A Consistent Strategy
A Consistent Strategy A Consistent Strategy A consistent focus on the right clients and markets A consistent focus on the right clients and markets sustainable the right an effective quality + the right proposition proposition an effective cost base cost base quality service service + profit profit
Slide 15: Right Clients, Right Market
Right Clients, Right Market Speedy Top 10 Customers by Market – Revenue Comparison - H1FY14 : H1FY13 FY11 - CY13 Actual Market Forecast CY13 - FY15 35% 30.6% 30% Speedy Growth +11.9% 25% Infrastructure & Industrial +1% Market2 20% 18.5% +1.3% 15% % Change 10% Speedy Growth 5% 3.6% Construction Marke
Slide 16: Case Study - Speedy Zholdas JV, Kazakhstan
Case Study - Speedy Zholdas JV, Kazakhstan What is Speedy Zholdas? 50:50 JV between Speedy and Denholm The JV will support Denholm Zholdas, established for 20 years in Kazakhstan and one of the principal oil services companies in the Caspian region Active on three of the world’s Top 10 supergiant oi
Slide 17: Management Team Further Strengthened
Management Team Further Strengthened Mark Rogerson Chief Operating Officer Strong construction and engineering experience with Qualified engineer / accountant Costain Group PLC Strong service background Previously MD, Natural 8 years experience at Serco, Resources, Costain Group PLC including intern
Slide 18: Evolving a Business for the Future
Evolving a Business for the Future A sustainable business with sustainable earnings Market Differentiated Operational Service End of CY14 Future Speedy Focus Proposition Effectiveness Excellence Multi sector More valued Maximise 24 hour Added value utilisation opening services Specialists Stronger p
Slide 19: Network Reconfiguration Update
Lynn Krige, Group Finance Director Network Reconfiguration Update
Slide 20: 5 Year Network Reconfiguration Programme
5 Year Network Reconfiguration Programme Sept 2015 2013 Complete Multi Service Multi Service Centre Centre • Regional hub • Centralised logistics & asset management • Full service offering inc. TRIM & training 2 6 • Centralised, enhanced repair facilities • Consolidated Workshops (+7 mini) Superstor
Slide 21: Why Now? Accelerated Project completion
Why Now? Project completion target completion Original Project Tamworth MSC Glasgow MSC Teeseide MSC Accelerated Bristol MSC 6.0% 5.0% 4.0% Forecast Construction 3.0% Growth Y on Y Sources: ONS, Construction Products Association, Autumn 2013 2.0% Forecast 1.0% Forecast GDP Source: Office for Budgeta
Slide 22: Cost and Return
Cost and Return Costs P&L non-recurring costs of £13-15m, primarily provisions against vacant properties Spread across H2 FY14, FY15 and H1 FY16 as vacated depots are incorporated into new MSCs and Superstores Cashflow impact defered as property provisions unwind. Timing 20% H2 FY14, 30% FY15, 30% F
Slide 23: Conclusion
Conclusion Confident of momentum into H2 Strong growth with chosen clients in target markets Expanded International operations into Caspian region Strengthened Management Team Balance Sheet supports further growth Strongly positioned for market recovery Confident of full year expectations; confident
Slide 24: Questions & Answers
Questions & Answers
Slide 25: Appendices
Appendices
Slide 26: Debt Structure & Headroom
Debt Structure & Headroom Book Value Borrowing Base Borrowings Total Facility Receivables £76.1m 85% of eligible £5.0m UK & Ireland Total debtors £159.3m £42.9m £67.0m £215.0m unutilised Plant & facility Machinery £186.2m 85% of eligible UK & Ireland plant & £116.4m £92.3m machinery 26
Slide 27: Growth with Major Clients in Chosen Markets
Growth with Major Clients in Chosen Markets H1 FY14 0 100 33.8% (Top 50) 65.6% (Top 50) 57.5% (Top 50) Construction Infrastructure Industrial Other 48.1% 29.0% 12.6% 10.4% H1 FY13 0 100 30.9% (Top 50) 57.0% (Top 50) 60.7% (Top 50) Construction Infrastructure Industrial Other 49.5% 27.3% 14.4% 8.9% S
Slide 28: Clear Market & Client Focus
Clear Market & Client Focus Sector Energy Transport Water Speedy Revenue Growth +7% +10% -12% HY14 v HY13 *NB declining spend due to AMP5 project cycle Examples of EDF Energy Hinkley Point Northern Line extension Thames Tideway Tunnel future projects £14bn (2014-2023) £450m (2014-2020) £4.2bn (2015-
Slide 29: Government Infrastructure Investment Pipeline
Government Infrastructure Investment Pipeline Construction market is improving, but still challenging with lower returns Infrastructure and Industrial markets provide long term secured revenues at higher margins £bn 350 200 180 300 160 250 140 200 120 100 150 80 100 60 40 50 20 Source: National Infr
Slide 30: Service Company, Not Just a Hire Company
Service Company, Not Just a Hire Company Low Security of income High Hign Low Fully Integrated services company secured, embedded, (full end-to-end asset management) long term visibility Competitive threat Trusted partner Value to Client (hire and some services) Secured income, eg BAE • Carillion •
Slide 31: Speedy's Leadership Message
Speedy’s Leadership Message Our Purpose Optimise assets, Darwin Service Operational Differentiated Market reduce risk, Pillars Excellence Effectiveness Proposition Focus enable delivery Our activities Our Vision To be the leading integrated services Foundation People Systems Brand provider in our Ou
Slide 32: Improving Margins & Returns
Improving Margins & Returns Property Plan Case Study – Post DP5 Multi Service Mini MSC Superstore Express On-Site Centre (MSC) 7 40 170 As Required 6 60,000 – 160,000 sq ft 20,000– 40,000 sq ft 10,000 – 30,000 sq ft 3,000 – 8,000 sqft Bespoke compound/ > 3 acre yard > 1 acre yard < 1 acre yard premi
Slide 33: UK & Ireland Fleet
UK & Ireland Fleet Utilisation by Product Group 80.0% 60.0% 40.0% 20.0% 0.1% 0.0% UK Group 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total 1 (20.0%) (40.0%) (60.0%) All Products Individual Product Lines 33