Slide 1: Interim Results HY 2024
Interim Results HY 2024 6 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: Agenda
Agenda Overview Martin Ward Financial Review Philip Vincent Martin Ward Chief Executive Officer Business Update Martin Ward Q&A Philip Vincent Chief Financial Officer 3
Slide 4: Overview
Overview Martin Ward redde n@RTHGATE 4
Slide 5: 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 6: 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 and newer contracts going live/reaching run rate Integration: Specialist Platform
Slide 7: Financial Review
Financial Review Philip Vincent 7
Slide 8: 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 9: 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 10: Group underlying profit waterfall
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 11: 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 Follow capital allocation priorities Net replacement
Slide 12: 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 13: Business Update
Business Update Martin Ward 13
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: Q&A
Q&A Martin Ward & Philip Vincent 19
Slide 20: Appendices
Appendices Divisional financials Cashflow reconciliation Fleet reconciliation Platform expansion Customer sector profile Depreciation rate analysis Website 20 20
Slide 21: 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 22: 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 23: 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 24: Cash flow reconciliation
Cash flow reconciliation HY 2024 Cash flow statement Cash flow reordered to reflect priorities HY 2024 HY 2023 Change HY 2024 HY 2023 Change £m £m £m £m £m £m Underlying EBIT 115.0 93.4 21.6 Underlying EBITDA 220.0 198.8 21.2 Depreciation and amortisation 105.0 105.4 (0.4) Net replacement capex1 (10
Slide 25: Fleet reconciliation
Fleet reconciliation Vehicles # UK&I Spain Redde Group Opening owned fleet (Apr-23)* 53,800 63,400 18,500 135,700 Acquisitions 100 - - 100 Purchases 4,700 9,500 1,100 15,300 Disposals (6,600) (7,200) (2,300) (16,100) Transfers 1,600 - (1,600) - Movements on direct vehicles (2,300) - - (2,300) Moveme
Slide 26: 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 Leveraging broader sales & platform infrastru
Slide 27: Our rental customers
Our rental customers UK Customer profile Spanish Customer profile % Fleet % Fleet VoH Sectors Sectors Sub-sectors VoH Construction, infrastructure Construction 10-15% ea Facilities Mgmt/Civil Engineering 20-30% ea Rental services, safety, Support services maintenance, health Specialist construction
Slide 28: Impact of depreciation rate
Impact of depreciation rate £m FY23 FY24 FY25 FY26 FY27 Total Reduced depreciation 55.1 46.7 22.3 5.4 0.1 129,6 Key points Reduced disposal profits (8.6) (34.0) (50.6) (31.8) (4,6) (129.6) Impact on Statutory EBIT 46.5 12.7 (28.3) (26.4) (4.5) - • Statutory adjustment re-phased on same vehicle cohor
Slide 29: 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 29