Slide 1: Interim Results HY2025
Interim Results HY2025. 04.12.2024
Slide 2: Agenda
Agenda. Overview Martin Ward Financial Review Philip Vincent Business Update Martin Ward Q&A Martin Ward Philip Vincent CEO CFO 2
Slide 3: Business overview
Business overview. Martin Ward
Slide 4: Good group performance, confidence in full year expectations
Good group performance, confidence in full year expectations. ▪ Operational momentum across all businesses ▪ Healthy demand combining with improving supply ▪ Disposal profits normalising as expected ▪ Investing for growth and returns ▪ Positive momentum into H2 4
Slide 5: Financial performance supporting dividend and capex
Financial performance supporting dividend and capex. Revenue (£m) PBT(£m) Underlying Trading 775.0 Revenues: + 5.6% to £775.0m 733.8 99.1 82.0 EBIT: -13.8% to £99.1m + 5.6 % -17.2% PBT: -17.2% to £82.0m HY 2024 HY 2025 HY 2024 HY 2025 ROCE: 2.0 ppt decrease to 12.8% HY dividend Leverage 8.8p £ 228.6
Slide 6: Significant operational progress across the businesses
Significant operational progress across the businesses. Rental Claims & Services • Fleet growth momentum • Growing repair volumes as capacity easing • New wins – reflecting strong demand • RTA support product broadening appeal • Cross sell success: over 750 new hires • Digital self-service portals a
Slide 7: Financial Review
Financial Review. Philip Vincent
Slide 8: HY 2024 Overview: in line with expectations
HY 2024 Overview: in line with expectations. Revenue: EBIT: Profit before tax: EPS: +5.6% -13.8% -17.2% -16.0% HY 2025: £775.0m HY 2025: £99.1m HY 2025: £82.0m HY 2025: 28.1p HY 2024: £733.8m HY 2024: £115.0m HY 2024: £99.1m HY 2024: 33.4p EBITDA: Net debt & leverage: ROCE: DPS: +£8.6m +£27.5m n/a -
Slide 9: H1 Group revenue: normalising vehicle sales
H1 Group revenue: normalising vehicle sales. £25.8m £11.6m Key points: vs prior year H1 £3.7m • UK&I rental revenue +1.7%, ave. VOH - 4.6% £911.3m £903.6m • Spain rental revenue +8.6%, ave. VOH +7.4% (£48.8m) • Claims and services revenue +6.1% • Normalising vehicle sales revenue -27.5% Total revenu
Slide 10: VoH Evolution: UK&I and Spain
VoH Evolution: UK&I and Spain. Average VOH UK&I. Average VOH Spain. 47,000 62,000 61,000 46,000 60,000 c.3k 59,000 45,000 lower 58,000 57,000 44,000 56,000 55,000 43,000 54,000 42,000 53,000 52,000 41,000 51,000 FY24 VOH FY25 VOH FY24 close FY24 VOH FY25 VOH FY24 close Key points. Key points. • UK&I
Slide 11: Group underlying profit waterfall
Group underlying profit waterfall. Disposal profit £99.1m £2.7m (£3.2m) £1.0m (£8.9m) £1.0m £82.0m £34.7m (£4.2m) (£5.5m) Key points. £25.8m • UK&I rental margin 15.7% • Spain rental margin 19.3% £64.4m • Disposal profits normalising £56.2m • C&S EBIT margin of 4.0% reflecting a quiet summer & IT in
Slide 12: H1 Cashflow & forward capex profile
H1 Cashflow & forward capex profile. Cash flow reordered to reflect priorities HY 2025 HY 2024 Change Key points. £m £m £m • H1 2025 UK&I ave fleet age -4.5 to 31.6 months EBITDA 228.6 220.0 8.6 Net replacement capex (NRC)1 (178.9) (103.5) (75.4) • H1 2025 Spain ave fleet age -2.1 to 28.8 months Lea
Slide 13: Robust balance sheet & prudent leverage
Robust balance sheet & prudent leverage. Cumulative shareholder returns (£m) 220.0 214.5 HY 2025 HY 2024 Dividends paid interim 177.2 Net debt £782.5m £755.0m Dividends paid final 170.0 Fleet assets £1.4bn £1.2bn Acquisitions 121.0 Share buyback Net debt / EBITDA 1.6x 1.6x 120.0 85.0 90.2 Target lev
Slide 14: Business Update
Business Update. Martin Ward
Slide 15: Well positioned to take advantage of market opportunities
Well positioned to take advantage of market opportunities. ✓ Differentiated proposition to 2020 ✓ Strength of complementary businesses with value-added products & services ✓ Favourable structural trends ✓ Normalising market conditions providing clear opportunities ✓ Investing from a position of stre
Slide 16: Rental overview: strong demand and customer focus
Rental overview: strong demand and customer focus. Market. H1 Progress. UK • Market environment: • Trend for outsourcing to rental continuing c.1,500 Corporate car products Large new wins: • Positive expectations from UK budget for core infrastructure across UK&I combination of market share sectors
Slide 17: Normalising supply conditions: positive for 2025
Normalising supply conditions: positive for 2025. UK. Spain. • 2025 order discussions well underway, good visibility • Good availability across product range • Volume: - supply available at scale • Improving terms available from diverse range of OEMs - steady ramp up through 2025 • Impact of CAFE cl
Slide 18: Claims & Services: positive momentum into H2
Claims & Services: positive momentum into H2. Market. H1 Progress. Summer 2024 • Traffic volumes normal, but reported RTAs down 10% • Repair cycle time durations normalising, along with replacement hire days • Fluid insurance market dynamics – not structural change Contract New Dundee extensions bod
Slide 19: Our people: valued and recognised
Our people: valued and recognised. Key Awards Wins. Best Rental Company Best Eco Initiative Apprenticeships & Early careers Internal talent & development Northgate Spain Northgate UK&I Ejecutivos Awards Business Car Awards Apprentice Mentor Best New Service Adam Thurston - FMGRS ChargedEV Benefits &
Slide 20: Leveraging technology: enhancing customer service
Leveraging technology: enhancing customer service. UK&I Rental. Spain Rental. Claims & Services. EV sustainability portal Northgate fleet portal eAuction Direct hire self-serve Customer First Trustpilot CRM system ADAS testing feedback 20
Slide 21: Confidence in outlook and strategic progress
Confidence in outlook and strategic progress. Outlook. Our strategic pillars. • Recent vehicle supply contracts: good visibility for calendar 2025 fleet growth Enable • Expected infrastructure spending positive for UK rental customer base Joined up, sustainable smarter mobility solutions • Spain con
Slide 22: Q&A
Q&A. Martin Ward & Philip Vincent
Slide 23: Appendices
Appendices. 4+ ZIGUP
Slide 24: Information available on the Corporate Website
Information available on the Corporate Website. Video discussions. Sustainability library. AI search tool. Strategy Investment case Our people ESG principles Click here Click here IR Update. IR Booklet. IR Society Best Mid-Cap Website Click here Click here 2023 & 2024 24
Slide 25: ESG actions
ESG actions. ESG Commitments Work underway in FY25 • Our Drive to Zero program is helping more customers adopt electric vehicles (EVs) for their fleets, with EV rentals increasing by X%. We have received notable awards, including 'Sustainability Mobility Solution' in Spain and 'Best Eco Initiative'
Slide 26: UK & I Rental
UK & I Rental. HY 2025 HY 2024 % change £m £m Revenue – Vehicle hire 195.6 192.3 1.7% Rental profit 30.8 31.4 (2.1%) Key points. • Rental margin of 15.7%, close to Rental margin 15.7% 16.3% (0.6ppt) sustainable level • VOH (-4.6%) Disposal profit 13.6 18.2 (25.0%) • Lower VOH offset by higher revenu
Slide 27: Spain Rental
Spain Rental. HY 2025 HY 2024 % change £m £m Revenue – Vehicle hire 146.8 135.2 8.6% Rental profit 28.3 28.1 0.7% Key points. • Strong growth in rental revenue Rental margin 19.3% 20.8% (1.5ppt) +8.6% Disposal profit 12.2 16.5 (26.2%) • Strong demand coupled with Investment in fleet increasing VOH E
Slide 28: Claims & Services
Claims & Services. HY 2025 HY 2024 % change £m £m Revenue – Claims and Services 442.1 416.6 6.1% Gross profit 79.7 82.0 (2.7%) Key points. Gross margin 18.0% 19.7% (1.7ppt) • Revenue +6.1% due to strong performance in FMG and FMGRS Operating profit 17.4 25.5 (31.6%) • Decreases in margin due to lowe
Slide 29: Cash flow reconciliation
Cash flow reconciliation. HY 2025 Cash consumption Cash flow reordered to reflect priorities HY 2025 HY 2024 Change HY 2025 HY 2024 Change £m £m £m £m £m £m EBIT 99.1 115.0 (15.9) EBITDA 228.6 220.0 8.6 Depreciation and amortisation 129.5 105.0 24.5 Net replacement capex1 (178.9) (103.5) (75.4) Unde
Slide 30: H1 Fleet reconciliation
H1 Fleet reconciliation. Vehicles # UK&I Spain C&S Group Opening fleet (Apr-24)* 49,400 66,500 16,500 132,400 Purchases 8,100 10,700 700 19,500 Disposals (8,000) (6,400) (1,800) (16,200) Transfers 200 - (200) - Movements on direct vehicles (600) - - (600) Movement on leased vehicles 300 - (200) 100
Slide 31: H1 Divisional capex
H1 Divisional capex. Vehicles # UK&I Spain Claims & Services Group Purchases 8,100 10,700 700 19,500 Disposals (8,000) (6,400) (1,800) (16,200) Purchases for growth 100 4,300 - 4,400 Sales in contraction - - (1,100) (1,100) Growth in owned fleet for growth capex 100 4,300 (1,100) 3,300 Volume of rep
Slide 32: HY 2024: Our rental customers
HY 2024: Our rental customers. UK Customer profile Spanish Customer profile % Fleet % Fleet VoH Sectors Sectors Sub-sectors VoH Construction, infrastructure 10-15% ea Facilities Mgmt/Civil Engineering 20-30% ea Construction Rental services, safety, maintenance, Support services health Specialist con
Slide 33: Impact of depreciation rate
Impact of depreciation rate. £m FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Total Reduced depreciation 55.1 38.3 15.7 4.1 - 113.2 Key points. Reduced disposal profits (8.5) (38.3) (40.5) (22.3) (3.6) (113.2) • Statutory adjustment re-phased on same Impact on Statutory EBIT 46.6 - (24.8) (18.2) (3.6) - v