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Published byGwendolyn Carpenter Modified over 9 years ago
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1 26 February 2010 Interim Results to 31 December 2009
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2 Presenting Team Martin Ward Group Managing Director Ian Wardle Chief Financial Officer
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3 Contents Summary Highlights Operational Highlights December 2008 Issues, December 2009 update Current Agenda Current Progress, Moving to Drive phase Financials -Current Status -Profit and Loss -Exceptionals -Balance Sheet/Working Capital -Cash/Borrowings Summary
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4 Introduction Summary Highlights Adjusted operating profit up 12.4% to £10.0m (2008: £8.9m) Net operating cash inflow of £20.2m (2008: £2.9m outflow) Net debt reduced by £30.4m since June 2009 (Dec 2008: £347.7m Dec 2009: £209.1m) ABI Cash receipts at 110% of adjusted ABI hire and repair revenue (2008: 89%) Debtor days reduced by 11.7% to 234 days (2008: 265 days) Statutory loss before tax of £0.4m (2008: £59.3m loss) after £6.0m exceptionals (2008: £62.3m) Unutilised fleet and working capital bank facilities of £44.6m at 31 December 2009
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5 Annualised overhead reduction of £44.0m from December 2008 to December 2009 Total open case count reduced by 24% to approximately 92,000 cases at 31 December 2009 (2008: 121,000) Fleet utilisation averaging 85.7% in the period to 31 December 2009 (2008: 72.0%) Reduction of £88.4m in operating working capital, including fleet, since February 2009 Consolidation of operational centres, management teams and IT platform leading to improved productivity and cost per case New fixed price services being piloted or agreed with 13% of current claims market New referral contract wins underpinning future case volumes and strong pipeline of new business opportunities Operational Highlights
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6 Issues December 2008 IssuesDecember 2009 ‘Focus’ Update Hire length deterioratingNow stabilised Over fleeted – low utilisationRight sized with 85%+ utilisation
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7 Issues December 2008 IssuesDecember 2009 ‘Focus’ Update Debtor days risingDecrease of 11.7% to 234 days (2008:265 days) Profit not turning into timely cash flowABI Cash running at 110% of ABI revenue
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8 Issues December 2008 IssuesDecember 2009 ‘Focus’ Update High cost base£44.0m annualised reduction (Dec 2008- Dec 2009) High open case volumeDecrease of 29,000 cases since Dec 2008 High levels of borrowingTotal net debt, including fleet, down £138.6m
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9 Current Agenda Management Plans Complete Focus phaseRestructuring complete by June 2010 Debtor daysTarget case closure and receivables plan continuing Ageing fleet assetRotation plan in 2010 to improve costs/quality Open case volumeLitigation and legacy case actions Risk managementImprove operational capability
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10 Right size – Right shape Ready to return to controlled growth New business model opportunity Stronger operational focus One business June 2010- ‘Drive’ Phase – ‘Changing Gear’
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Financial overview Current Status Hire length recovering – January peak due to weather Own Fleet Revenue Utilisation consistently above +80% target Fleet Holding Costs stable, December/January cost premium due to planned 20% sub-contract content to meet seasonal peak demand All above driving improved gross margin +2.1% pts vs. 2H FY09 Overheads £44.0m annualised reduction December 2008 – December 2009; 1,118 headcount reduction through January 2010, more to come Sub-contract cost premium to service peak on- rent
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12 Financial overview Summary Profit & Loss Cost driven turnaround -Gross Margin repaired -Overheads tracking down Performance Stabilised -Case volume -Hire length -Utilisation 1H FY10 6 mths 31/12/09 £m 2H FY09 6 mths 30/06/09 £m 1H FY09 6 mths 31/12/08 £m Accident Management108.1120.8144.3 Credit Repair44.448.061.0 Adjusted Revenue152.5168.8205.3 Adjusted Gross Profit / Margin44.244.159.9 % Gross Margin29.0%26.1%29.2% Overheads34.248.351.0 Adjusted Operating Profit10.0-4.28.9 % Operating Margin6.6%-2.5%4.3% KPI’s Hire Cases ‘000s77.588.298.8 Hire Days ‘000s1557.21799.22187.7 Hire Length20.120.422.1 % Fleet holding cost to Hire Revenue 19.0%23.9%28.5% % Revenue Utilisation85.7%70.2%72.0%
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13 Financial overview Exceptionals Restructuring: target completion by 30 June 2010 £m1H FY10 31/12/09 2H FY10 30/06/10 Full Year 30/06/10 Closure of TSS / Legal Services3.40.13.5 Expedite IT Decommissioning0.80.10.9 General Redundancy1.40.62.0 Share-based Payment / Intangible0.70.41.1 Other(0.3) Operational Plan8.5 Data Network0.3 6.010.016.0 Cash3.21.85.0 Non-Cash2.88.211.0
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14 Financial overview Balance Sheet / Working Capital Progress – Project Century Further £25.3m reduction in Operational Working Capital – Project Century Focus Net Debt outstanding reduced by £30.7m* Profitable Cash Flow after debt service etc £m31/12/0930/06/09Change Goodwill / Intangibles44.945.2 Fixed Assets Exc. Fleet15.819.5 Other Non-Current2.1 Total Non-Current Exc. Fleet62.866.8 Fleet109.7132.2-22.5 Receivables198.6202.8-4.2 Trade / Other payables-69.8-71.21.4 Operating Working Capital238.5263.8-25.3 Other Assets / Liabilities-4.6-2.3 Total Assets/ Liabilities296.7328.3 *Net Debt excl unamortised fees 212.1242.8-30.7 Net Assets84.685.5
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15 Financial overview Cash/Borrowings Net debt outstanding reduced by £30.7m* 31 December 2009 unutilised Corporate working capital and fleet bank facilities of £44.6m £m 31 Dec 2009 30 June 2009 Change Cash / Cash Equivalents1.011.5-10.5 Corporate Debt Due < 1 Year-8.7-7.8 Asset Finance Leases Due < 1 Year -65.6-71.9 Net Current-74.3-79.75.4 Mix34.9%31.3% Corporate Debt Due > 1 Year-103.6-117.9 Asset Finance Lease Due > 1 Year -35.2-56.7 Net Non-Current-138.8-174.635.8 Mix65.1%68.7% *Total Net Debt exc unamortised bank fees 212.1242.830.7
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16 Summary Business trading performing to expectations Good demand for services with strong prospect pipeline Overhead substantially reduced and further improvements crystallising New protocol model emerging which changes cash profile Development of new service concepts – early stages of ‘Broaden’ phase
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