Speedy Hire PLC · LSE:SDY
Speedy Hire — FY2013 Earnings Presentation
27 slides from Speedy Hire's earnings presentation, Mar 31, 2013
Slide 1: Delivering On A Consistent Strategy
Speedy Hire Plc Vpn. . ppeedy Delivering On A Consistent Strategy — % seeterway Preliminary results for the year ended 31 March 2013
Slide 2: Legal disclaimer
Legal disclaimer This presentation has been prepared to inform Nothing contained within this presentation or communicated investment professionals about Speedy Hire Plc verbally should be construed as a profit forecast or profit (‘Speedy’), and does not constitute an offer of estimate. Speedy undert
Slide 3: Results presentation Agenda
Results presentation Agenda • Financial Performance – Lynn Krige, Group Finance Director • Delivering on a Consistent Strategy – Steve Corcoran, Chief Executive • Question and Answer Session 3
Slide 4: CL InAN nl Dataemanan
CL InAN nl Dataemanan rildaltClal FChlOnrhildaiNee A better way ALT= ° Sneedy,
Slide 5: Financial highlights
Financial highlights Financial year ended 31 March 2013 2012** Change £m £m Revenue 340.4 326.4 up 4.3% EBITDA* 73.5 62.6 up 17.4% EBITDA % 21.6% 19.2% EBITA* 24.4 19.7 up 23.9% EBITA % 7.2% 6.0% PBT* 16.8 12.4 up 35.5% Adjusted earnings per share* 2.39p 1.72p up 39.0% Dividend per share 0.53p 0.46p
Slide 6: Financial position
Financial position As at 31 March 2013 2012 Change £m £m Property, plant & equipment 242.0 241.0 0.4% Debtor days – UK & Ireland 61.3 days 65.3 days 4 days Bad debt charge as a % of revenue 1.30% 1.70% Net debt 72.4 76.3 -5.1% Gearing 30.6% 33.2% Net debt: EBITDA* 0.99x 1.21x Shareholders’ funds 237
Slide 7: UK & Ireland
UK & Ireland Financial year ended 31 March 2013 2012** Change EBITDA* margin £m £m Revenue 321.4 315.3 1.9% EBITDA* 73.8 65.7 12.3% EBITDA % 23.0% 20.8% EBITA* 31.2 27.9 12.2% FY12 FY13 EBITA % 9.7% 8.8% EBITA* margin NBV of property, plant & equipment 183.3 185.8 1.3% Net capital expenditure 33.8 4
Slide 8: International
International Financial year ended 31 March 2013 2012 Change £m £m Revenue 19.0 11.1 71.2% EBITDA* 5.5 2.5 120.0% EBITDA % 28.9% 22.5% FY12 FY13 EBITA* 0.8 (0.7) n/a EBITA % 4.2% (6.3%) NBV of property, plant & equipment 31.2 24.5 27.3% Net capital expenditure 15.8 9.8 61.2% Depreciation 4.7 3.2 46.
Slide 9: Our strategy in action
Our strategy in action Revenue Number of depots Number of employees Number of vehicles Proactive management action driving improvements in financial performance 9
Slide 10: Cash flow: movement in net debt
Cash flow Group, excluding International International 90 Cash generation Cash investment 80 0.8 Movement in net debt (£m) 70 5.2 16.5 60 2.9 0.4 10.2 50 18.7 62.7 10.0 40 76.3 42.5 72.4 30 59.0 20 1.0 10 0 On-going improvement in Group cash flow enabling self-funded investment 10
Slide 11: 2013 in conclusion
2013 in conclusion • Focus on the right clients, sectors and contracts driving higher quality and longer term revenues • Operational efficiencies drive increased operating margin • £59.0m investment in hire fleet, fully funded from Group cash flow • Strong balance sheet fit for the future • On-going
Slide 12: Delivering a Consistent Strategy
Wize 1 a Consistent Strategy = Ae
Slide 13: Our approach
Our approach Growing sustainable profit: Utilisation of UK Hire fleet up 2.5% ROCE - up to 7.9% from 6.0%, on a 12 month rolling basis EBITA - increased to £16.8m, from £12.4m; up 35.5% * Excluding International Delivering on a consistent strategy 13
Slide 14: Right clients, right markets
Right clients, right markets Speedy Revenue FY13 v FY12, Revenue % Change Revenue Growth From Target Markets UK Construction Revenue in Context Speedy Construction Construction Speedy Revenue Speedy Revenue Revenue % Change Market (CPA*) with CN** Top 10 with CN** Top 50 FY13/FY12 * 2012/2011 FY13/F
Slide 15: Managing revenue: clear market & client focus
Managing revenue: clear market & client focus FY12 Group Revenue Split FY13 Group Revenue Split • Growth in Infrastructure, Industrial and Other markets (primarily Events) • Progressive drive into Infrastructure and Industrial since 2010 • Construction remains a key market at 49% - growth with the T
Slide 16: Right proposition - managing client risk
Right proposition - managing client risk A service, not a supply model Speedy is increasingly a services company, not just a hire company 16
Slide 17: Right proposition - a differentiated approach
Right proposition - a differentiated approach An Integrated Service proposition: optimising assets, reducing risk and enabling delivery • Service based: built around the hired asset, not just hire supply • A flexible, evolving menu: provides bespoke solutions to assist varying needs of clients • Par
Slide 18: Sustainable growth - how we are achieving it
Sustainable growth - how we are achieving it Growth from: National Grid Peel Ports • Securing new and developing existing revenues in chosen markets Morgan Sindall London Bridge City • 28% revenue is now from service based income • Increasing presence in international oil & gas • Maintaining market
Slide 19: Managed services provider – case study
Managed services provider – case study National Grid • FTSE 100 company • One of the largest investor-owned energy companies in the world • Forecast spend of £22bn (2010-2015), reaching £31bn by 2021: - Electricity Transmission - Gas Transmission & Distribution Our Contract • Managed Services Provid
Slide 20: Summary
Summary • Actively driving return on capital in a challenged economy and a shrinking UK construction market: - Revenue up 4.3% - EBITA margin up 35.5% - UK Hire fleet utilisation up 2.5% • The outlook for FY14 suggests the UK economy and construction activity will remain subdued • However, we contin
Slide 21: Questions and answers
Questions and answers Fe atscoen say
Slide 22: A better way
A better way
Slide 23: Debt structure & headroom
Debt structure & headroom 31 March 2013 Book value Borrowing Base Borrowings Total facility Receivables 85% of eligible £76.0m £5.0m UK & Ireland debtors Total £159.1m £39.4m £75.8m unutilised facility £215.0m Plant & machinery £180.9m 85% of eligible UK & Ireland plant & machinery £119.7m £83.3m 23
Slide 24: Covenants
Covenants Covenant Position at Methodology threshold 31 Mar 13 Not greater Leverage than 2.25x 1.0x Total Net Debt to EBITDA EBITDAR to Rent Adjusted Finance Charges (“RAFR”) Fixed Charge Not less than Where: 2.1x 3.2x Cover EBITDAR is EBITDA before operating lease charges RAFR is net finance charge
Slide 25: Return on capital employed
Return on capital employed 25
Slide 26: Service: Hire %
Service: Hire % Hire Hire Revenue Revenue 72% Partnered Services Services Revenue Services 28% Revenue 26
Slide 27: UK & Ireland Fleet Utilisation
UK & Ireland Fleet Utilisation Variance – FY13/12 27