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Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Interim Results for the six months ended.

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Presentation on theme: "Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Interim Results for the six months ended."— Presentation transcript:

1 Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Interim Results for the six months ended 30 September 2010

2 Very satisfactory results

3 Resilient business model  Difficult trading environment in most markets  No revenue deterioration  Prior year cost actions effective  Strong operational cash flows - £10.8m net  Fleet sales continued, generating profits of £1.3m  Net capex more than doubled to £5.6m  Borrowings reduced by further £7.9m in period - £14.4m over 12 months  Results endorse the quality of our business model

4 Revenue and Operating Profit trends Revenue (£m) Operating Profit (£m) 10.0

5 Group structure The Equipment Rental Specialists

6 Strength through diversity

7 Overseas development

8 Oil and Gas – global support network North Sea Middle East Singapore Australia Americas Africa Overseas hubs established 2002 - 2008

9 Divisional overview  All divisions profitable  All divisions cash generative  Lower cost base helps maintain profitability  Positives UK Forks and Torrent Trackside profit recovery Network Rail 5 year contract win Major customer telehandler acquisition with sole supply agreement  Negatives Shorter hire periods Rate pressure in certain areas but activity levels improved  Fleet investment resumed  Overseas activity expanding

10 Business performance

11 Capital expenditure

12 Financials

13 Highlights

14 Pre-tax profit bridge

15 Earnings and dividend per share

16 Robust balance sheet

17 Operating cash flow

18 Total cash flow

19 Modest gearing, comfortably within covenants Net debt -17% Underlying gearing -23% Interest cover (12 months) Net debt / EBITDA (12 months) -7% -12% -17% -6% -16% -20% -12%

20 Bank facilities

21 Conclusion Highly satisfactory results in a difficult trading environment  Diversity smooths impact of specific sector weakness  Double digit margins, double digit ROCE  Recovery success – UK Forks and Torrent Trackside  Long term contract wins – Hire Station and Torrent Trackside  Fleet acquisition – UK Forks  Balance sheet further strengthened  Dividend maintained  £8m net cash generation

22 Outlook  Assumption of overall market stability and slow recovery  Focus on leveraging opportunities within existing business streams  Delivery on recent investments and contract wins  Reinvestment into improving markets  Overseas expansion  Financial strength an asset to future development  Focus maintained on long term shareholder value creation

23 Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Supplementary Schedules

24 Net working capital

25 Effective rate of tax


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