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Published byVincent Strickland Modified over 8 years ago
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Vp plc The Equipment Rental Specialist Final Results Year ended 31 March 2007 Rental and sale of specialist products and services to construction, civil engineering, rail, oil and gas exploration, events and industrial markets
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Agenda Financial Review Mike Holt – Group Finance Director Business Review Neil Stothard – Group Managing Director Concluding Remarks Jeremy Pilkington - Chairman
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Mike Holt Group Finance Director Financial Review
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Financial Highlights
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Earnings and Dividend per Share
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Balance Sheet
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Operating Cash Flow
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Cash Flow
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Fleet Investment
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Net Debt
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Excellent Financial Health Operating cash flows remain strong (2x profits) Interest cover is robust (8x) Balance sheet capable of supporting further growth Effective internal controls
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Neil Stothard Group Managing Director Business Review
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Vp’s Investment Case Specialist business with diversified market exposure Market leading positions Strong value added element Excellent cash generation and financial strength Proven management team with strength and depth Consistent performer with quality returns
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Vp Markets Exposure
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Strength through diversity
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Business Performance Record operating profits of £16.5m up 44% 30% of profit growth is organic Substantial revenue growth - up 22% to £121.6m Operating margins improved to 13.4% Fleet investment £32.6m - up 57% ROCE 16%
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Segmental Analysis
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Excellent Business Momentum Revenue (£m) Operating Profit (£m)
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Quality Returns Return on Average Capital Employed (%) Dividend per share (pence) Earnings per share (pence) Operating Margin (%)
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Growth Strategy Progressing Well Delivery of substantial earnings growth Significant organic capital investment Prior year acquisitions integrated successfully New geographic markets, e.g. Ireland, Germany New markets e.g. transmission, events Successful diversification of offering, e.g. formwork, pipe fitting Acquisitions: MEP, Evershore, Midway, Cool Customers
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Total Shareholder Return
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Jeremy Pilkington Chairman Concluding Remarks
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Value added, specialist rental sectors Market leadership – supplier of choice Double digit earnings growth potential > 15% ROACE Building sustainable capabilities Business Model
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Repeat business, share of wallet Business growth supports investment – assets, skills, capabilities Employee satisfaction, retention and development Improved service levels Customer satisfaction Virtuous Service Cycle
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Record year – Group making strong progress Excellent growth opportunities within existing markets – organic and acquisition Financial capacity to fund significant growth Ambitious and proven management team able to deliver Summary
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Vp plc The Equipment Rental Specialist Final Results Year ended 31 March 2007 Rental and sale of specialist products and services to construction, civil engineering, rail, oil and gas exploration, events and industrial markets
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