Speedy Hire Plc · LSE:SDY
Speedy Hire — FY2017 Earnings Presentation
24 slides from Speedy Hire's earnings presentation, May 2017
Slide 1: Year end results 31 March 2017
May 2017 Year end results 31 March 2017 Russell Down, Chief Executive Chris Morgan, Group Finance Director
Slide 2: Significant improvement in performance
Significant improvement in performance Revenue (excluding disposals) Hire fleet £349.1m 7.9% £194.8m 11.4% FY16: £323.5m FY16: £219.9m EBITDA* (excluding disposals) Asset utilisation (UK & Ireland) £64.9m 23.9% 51.5% c.7.0% FY16: £52.4m FY16: n/a PBT* ROCE* (excluding disposals) £16.2m 224.0% 8.4% 1
Slide 3: Strategic and operational highlights
Strategic and operational highlights Emphasis on customer service, innovation and relationships Improved systems and management information fully embedded Hire fleet reduced by 11.4% to £194.8m reflected in enhanced asset utilisation Successful acquisition of Lloyds British for £3.8m, now fully inte
Slide 4: Financial update
May 2017 Financial update Chris Morgan, Group Finance Director
Slide 5: Summary financials
Summary financials FY2017 FY2016 Change £m £m % 12.2% Revenue increased (excluding disposals) 7.9%. Revenue 369.4 329.1 Partnered services revenue increased 16.9% Gross profit* 191.7 184.2 4.1% Gross margin % 51.9% 56.0% Gross margin 55.4% (FY16: 56.7%) (excluding disposals), reflecting higher propo
Slide 6: Segmental analysis – UK & Ireland
Segmental analysis – UK & Ireland FY2017 FY2016 Change £m £m % Revenue growth (excluding disposals) 6.4%. Planned Revenue 342.9 308.7 11.1% disposals revenue £20.3m (FY16: £5.4m) including Gross margin % 54.2% 58.1% £14.4m of heavy plant EBITDA* 62.2 54.2 14.8% Sales mix and asset disposals affected
Slide 7: Segmental analysis – International
Segmental analysis – International FY2017 FY2016 Change £m £m % 29.9% International represented 7.2% of Group revenue Revenue 26.5 20.4 Gross margin % 22.1% 21.7% Services national oil and gas clients in UAE EBITDA* 5.0 3.2 56.3% Significant portion of revenue through partnered EBITDA margin %* 18.9
Slide 8: Balance sheet
Balance sheet 31 March 31 March 2017 2016* £m £m Strategic reduction in hire fleet of 11.4% to Intangibles & JV 9.2 7.0 £194.8m (FY16 restated: £219.9m); via disposal Property, plant and equipment 234.7 264.1 of under utilised assets and targeted additions - Hire fleet £0.9m inventory related to Llo
Slide 9: Cash flow
Cash flow FY2017 FY2016 £m £m Cash generated from operations £48.9m (FY16: Adjusted operating profit 19.3 10.0 £25.9m) Depreciation 43.8 43.1 Small working capital outflow reflects increase in EBITDA 63.1 53.1 revenue Exceptional costs (0.8) (14.0) Working capital Significant reduction in hire fleet
Slide 10: Net debt reconciliation
Net debt reconciliation FY2017 FY2016 £m £m Net debt 1 April 102.6 105.3 Significant reduction in net debt, Cash from operations (48.9) (25.9) reflecting improved asset and cash Interest paid management 4.3 4.9 Tax paid 1.9 0.6 Facility headroom available £75.8m Non-fleet capex 4.1 10.6 (FY16: £54.8
Slide 11: Financial priorities
Financial priorities Profitable growth Hire fleet optimisation Working capital management Cash generation Capital allocation ROCE 11 May 17
Slide 12: Business update
May 2017 Business update Russell Down, Chief Executive
Slide 13: Our strategic vision
Our strategic vision To become the best company in our sector to do business with, and the best to work for Provide first class customer experience, so that everything we do is focussed on the customer Put innovation at the heart of everything we do Cultivate strong client relationships, that build
Slide 14: What we do
What we do Core hire 58%* Tools, lifting, survey Power Rail Plant Traffic Partnered services 15%* Powered access Accommodation Cranes Large plant management Fuel Consumable Secondary revenues 20%* management Training Repairs Transport sales International 7%* Middle East oil and gas services *% of re
Slide 15: Customer segments
Customer segments Retained major customer framework agreements in the year Focus on growing revenue from regional Major 45% * and local customers (2016: 47%) c.300 customers New account opening process simplified Dormant account campaign Regional 39%* (2016: 38%) c. 5,500 customers Local marketing a
Slide 16: Providing first class customer experience
Providing first class customer experience Customer journey mapped out Brand proposition launched – vision, mission and values ‘Voice of the Customer’ programme implemented ‘People Matters’, survey undertaken to build employee engagement Improved systems, processes and management information leading
Slide 17: Innovation at the heart of everything we do
Innovation at the heart of everything we do 70 new sustainable and innovative fleet additions; ‘Green Options’ Acquired Lloyds British in December 2016 Fully integrated into the business; strong brand identity Revenue and cost synergies starting to be realised Complements existing lifting, testing a
Slide 18: Cultivating strong client relationships
Cultivating strong client relationships Sales teams restructured to better serve national and local customers Increased customer engagement and communication Customer innovation days Speedy Expo held November 2016 Tradepoint relationship broadening customer base 18 May 17
Slide 19: How we service customers
How we service customers Nationwide Over network of 300,000 210 itemised depots assets Latest Efficient innovative 3,745 logistics tools and people equipment Best in class Specialist systems expertise and processes 19 May 17
Slide 20: Why customers choose Speedy
Why customers choose Speedy Everything we do is designed to support the efficient delivery of our services, and contribute to the success of customer projects Health, Customer Low cost Financial Full range of safety and first operating Flexibility strength services sustainability approach model 20 M
Slide 21: Leading the industry in safety and sustainability
Leading the industry in safety and sustainability Leading Heath and Safety performance in the industry ‘Intelligent Safety’ campaigns Near miss reporting smartphone app launched ISO 50001 accreditation for energy reduction Awarded RoSPA Gold Award for continuous improvement in accident and ill healt
Slide 22: People
People 3,745 employees, 176 from Lloyds British acquisition (2016: 3,644) ‘People Matters’ employee survey re-launched High engagement Group and local improvement plans launched Training and development Apprentice scheme Classroom; practical; e-learning Management development New standardised PDRs l
Slide 23: Summary and Outlook
Summary Turnaround plan complete Customer focussed culture embedded Improved financial and operational performance Strong balance sheet, low gearing with significant headroom Outlook Market remains competitive Well positioned to take advantage of market opportunities Continued sustainable profitable
Slide 24: Questions
Questions May 17