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Published byWinfred Welch Modified over 9 years ago
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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 30 September 2010
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Very satisfactory results
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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
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Revenue and Operating Profit trends Revenue (£m) Operating Profit (£m) 10.0
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Group structure The Equipment Rental Specialists
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Strength through diversity
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Overseas development
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Oil and Gas – global support network North Sea Middle East Singapore Australia Americas Africa Overseas hubs established 2002 - 2008
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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
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Business performance
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Capital expenditure
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Financials
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Highlights
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Pre-tax profit bridge
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Earnings and dividend per share
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Robust balance sheet
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Operating cash flow
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Total cash flow
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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%
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Bank facilities
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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
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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
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Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Supplementary Schedules
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Net working capital
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Effective rate of tax
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