The Equipment Rental Specialist Presentation to Carillion...

1

The Equipment Rental Specialist


1

Presentationto Carillion

The Equipment Rental Specialists

9th June 2010

The Equipment Rental Specialists

DRAFT #3 (24 Nov)


Results for the

year ended

31 March 2018

2



2

AGENDA1. Strategic Aim and Highlights

2. Market and Trading Review

3. Financial Review

3



3

Strategic

Aim

and

Highlights

4



4

Resilient

and

proven model

First class

asset

management

Enhancing

our

offer

Building on

core

attributes

5



5

o ●Excellent profit growth +16%

o ●Revenue growth +22%

o ●Rental fleet investment +13% to £64.9m

o ●Four acquisitions including Brandon Hire

o ●Return on capital 14.8% (16% excluding Brandon)

o UK division delivering strong results

o ●Focus on specialist rental markets continues to

pay off

6



6

183.1

205.6 208.7

248.7

303.6

0

50

100

150

200

250

300

350

2014 2015 2016 2017 2018

Profit before

tax,

amortisation

and

exceptional

items

20.1

26.829.8

34.9

40.6

0

5

10

15

20

25

30

35

40

45

50

2014 2015 2016 2017 2018

(£m)

(£m)

Revenue

13% compound growth over 5 years

19% compound growth over 5 years

7



7

Market

and

Trading

Review

8



8

Infrastructure

Housebuilding Oil & Gas

Construction

9



9

Market segment

Revenue Growth

on

prior year2018

£m

2017

£m

Infrastructure* 113.6 105.0 +8%

Construction 100.4 66.2 ** +52%

Housebuilding 34.5 31.5 +9%

Oil & Gas 24.9 21.5 +16%

Other 30.2 24.5 +23%

Total 303.6 248.7 +22%

* Utilities, Rail, Transmission and Facilities Management

** 14% growth excluding Brandon acquisition

o Infrastructure growth – water / transmission

o Construction growth – repair & maintenance / fit out

o Housebuild – stable demand

o Offshore Oil & Gas – delayed recovery

10



10

2018

£m

2017

£m

Revenue 303.6 248.7 +22%

PBITA 44.0 37.8 +17%

Operating margin 14.5% 15.2%

o Excellent UK performance

o Strong profit growth

o Core markets supportive

o Organic growth and acquisitions

11



11

2018

£m

2017

£m

Revenue 272.0 220.0 +24%

PBITA 43.0 35.9 +20%


o AMP 6 activity – Groundforce

o Construction opportunity – buoyant trading in Hire Station

o Supportive housebuilding – UK Forks

o Rail, off peak but good performance – Torrent Trackside

o Brandon Hire acquisition – November 2017

12



12

2018

£m

2017

£m

Revenue 31.6 28.7 +10%

PBITA 1.0 1.9 -46%


o Australia and New Zealand markets supportive in year of

good progress for TR Group

o Global offshore oil & gas slower than expected for Airpac

Bukom

TR Group

13



13

2018

£m

2017

£m

UK 59.8 53.9

International 5.1 3.7

Total fleet investment 64.9 57.6

Disposal proceeds (18.5) (16.7)

Net expenditure on fleet 46.4 40.9

o Strong UK regional fleet capex supporting demand

o Investment for growth into Hire Station/Groundforce/Torrent

o International fleet capex – mostly TR Group

14



14

April 2017 – JMS M&E

○ UK mechanical and electrical specialist tool hire - Hire Station

○ consideration £3.6m

April 2017 – Zenith Survey Equipment

○ UK survey and safety equipment rental and sales - Hire Station

○ consideration £3.7m plus £2.3m debt

November 2017 – Brandon Hire Group

○ UK tool hire specialist with 143 branches - Hire Station

○ consideration £41.7m plus £27.5m debt

November 2017 – First National

○ regional UK telehandler business - UK Forks

○ consideration £0.9m

15



15

o ●New financial year has started well

o UK division

- UK infrastructure, housebuild and construction

provide solid foundation

- Focus on successful integration of Brandon Hire into

the Vp group

- European activities gaining traction

o ●International division

- Australia and Malaysia positive outlook.

- Offshore oil & gas showing tentative improvement

o We are excited about delivering on a wide range of

initiatives in the new financial year

16



16

Financial

Review

17



17

2018

£m

2017

£m

Revenue 303.6 248.7 +22%

EBITDA 84.3 71.2 +18%

Depreciation (40.3) (33.4) +21%

EBITA 44.0 37.8 +17%

Interest (3.4) (2.9)

PBTA (and exceptionals) 40.6 34.9 +16%

Net margin 13.4% 14.0%

18



18

2018 2017

Basic EPS (pre amortisation) 81.8p 69.5p +18%

Profit before tax / amortisation £40.6m £34.9m +16%

Weighted ave. no. of shares 39.5m 39.2m

Effective tax rate 20.9% 22.0%

19



19

Dividend per share (pence)

14.0

16.5

18.9

22.0

26.0

6

11

16

21

26

2014 2015 2016 2017 2018

2018 2017

Dividend per share 26.0p 22.0p +18%

Dividend cover 3.2x 3.2x -

EPS adjusted* 81.8p 69.5p +18%

* Pre amortisation and exceptionals

20



20

0

2

4

6

8

10

12

14

16

18

20

2014 2015 2016 2017 2018

13.5%

16.2% 16.3% 16.0%

14.8%*

* 16% excluding Brandon

WACC

21



21

2018

£m

2017

£m

Property, plant and equipment 241.9 195.6

Intangible assets/goodwill 91.5 47.5

Net working capital 7.3 (1.9)

Other (7.1) (5.0)

Net debt (179.2) (98.9)

Net assets 154.4 137.3

22



22

2018

£m

2017

£m

EBITDA 84.3 71.2 +18%

Cash from operations 73.6 69.9

Net capital expenditure (53.1) (48.0)

Interest and tax (10.4) (7.4)

Acquisitions (49.7) (10.0)

Dividends (9.0) (7.6)

Other (1.2) (5.8)

Debt acquired (30.5) (3.9)

Change in net debt (80.3) (12.8)

23



23

Facilities

2018

£m

Facilities

2017

£m

RCF ends May 2020 65.0 65.0

RCF ends December 2021 135.0 55.0

Total RCF 200.0 120.0

Overdraft 7.5 5.0

Actual borrowing net debt 179.2 98.9

Headroom 28.3 26.1

24



24

14.2015.24

13.00

11.35

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

FY 15 FY 16 FY 17 FY 18

1.241.45 1.39

1.89

0.0

0.5

1.0

1.5

2.0

2.5

3.0

FY 15 FY 16 FY 17 FY 18

EBITA

Interest

Cover

> 3 times

Net Debt /

EBITDA

< 2.5 times

25



25

26



26

Supplementary

Schedules

27



27

2018

%

2017

%

Standard rate 19.0 20.0

Impact of tax rate change (2.7) -

Permanent disallowables 0.9 0.6

Chattels (1.2) (1.4)

Prior year adjustments 0.6 0.5

Non qualifying depreciation 0.7 0.7

Overseas tax rate 0.5 0.1

Impairment of intangibles 3.1 1.6

Other - (0.1)

Effective rate 20.9 22.0

28



28

Revenue:1970:

£2m

1980:

£14m

1990:

£70m

2000:

£55m

2010:

£129m

2014:

£183m

2015:

£206m

2016:

£209m

2017:

£249m

2018:

£304m

Group history – 1954 to date

1954

1973

19801990

2018

1954Vibratory Roller & Plant Hire(Northern) Limited founded

1973Floated on main market

Vibroplant plc

1975First move into specialist plant

Airpac

1980Shoringdivision

established

1982US powered

access

business established

1990Groundforceacquired from

SGB

1996Cannon Tool Hire

acquired

Exit from USA

1997Rail:

Torrent

Trackside acquired

2000UK

Forks

divisioncreated

2001Hire Station formed through merger

of 5 regional tool businesses

2001renamed Vp

plc

2005TPA and ESS

acquired

2006Acquisition of

Bukom

Oilfield Services(Airpac Bukom

formed)2010

Geographical expansion:Global (Airpac Bukom)

Eire (Groundforce)Germany (TPA)

2015Acquisition of

Test &

Measurement

2016Acquisition of Higher Access

and TR Pty (Australia)

2017Acquisition of

JMS M&E

Zenith Survey

Equipment

2014Vp

celebrates

60 years

2017

Acquisition of

Brandon Hire

2017

29



29

Rough terrain material handling equipment and

tracked access platforms

Excavation support systems and specialist products

Portable roadway and temporary access solutions

Tool hire, safety equipment, press fitting and low level

access

Tool and equipment hire to the building and

construction industry

Infrastructure equipment and services to the railway

renewals and maintenance sector

International

division

UK

division

Equipment and service providers to the international

oil and gas exploration and development markets

Test & measurement, communications and audio

visual rental in Australia, New Zealand and Malaysia.TR Group

The Equipment Rental Specialist Presentation to Carillion...

Documents

Transcript of The Equipment Rental Specialist Presentation to Carillion...