Presentation to Carillion

Transcription

1 Presentation to Carillion 9 th June 2010 Final results for the year ended 31 March 2015

2 Agenda 1 Results summary Operational review Financial review

3 Our strategy Agenda 2 Aim - to generate sustainable value creation for shareholders How - utilising our expertise in asset management - exceeding customer expectations - maintaining and utilising our financial strength - retaining and attracting the best people Where - serving diverse markets in the UK and overseas

4 Results summary Profit before tax and amortisation 26.8m 20.1m +33% Revenue 205.6m 183.1m +12% Earnings per share pre amortisation 54.5p 42.0p +30% Total dividend per share 16.5p 14.0p +18% Return on average capital employed 16.2% 13.5%

5 Another year of substantial progress Agenda 4 Record profits - 33% ahead of prior year 12% revenue growth Improved construction segment Housebuilding and infrastructure supportive Return on average capital employed improved to 16.2% Strong cash generation - EBITDA 53.8m Growing investment in rental fleet m Acquisition of rail plant rental activity from Balfour Beatty Rail

6 Revenue and profit profile 5 ( m) ( m) Revenue Profit before tax and amortisation ( m) Revenues growing Progressive profit trend

7 Operational review 6

8 Markets all key markets delivering growth Agenda 7 Market Segments Market Revenue Growth/ segment Decline Oil & Gas 12% House building 11% Other 6% Construction 25% Infrastructure 46% m m on prior year Infrastructure* % Construction % Oil & Gas % Housebuilding % Other % Total % *Utilities, Rail, Transmission and Facilities Management

9 Divisional overview Agenda 8 Construction sector recovery fuelling demand Housebuild & infrastructure supportive Oil and gas - progress but, oil price fall in H2 Fleet investment increased into opportunity Rail acquisition integrated well Return on Capital ahead of Group's target

10 Business performance 9 Revenues PBITA m m m m UK Forks Housebuild and construction Groundforce Good infrastructure demand Airpac Bukom Improved but H2 weaker Hire Station Significant growth TPA UK transmission market slowed Torrent Trackside Maintained rail investment TOTAL Operating Margin 14.0% 11.9% Strong margin improvement

11 Capital investment in fleet m m UK Forks Business growth Groundforce Fleet replacement Airpac Bukom Rental fleet upgrade Hire Station Strong demand, product availability TPA New product investment Torrent Trackside New growth opportunities Total fleet capex Disposal proceeds (12.0) (8.6) Net expenditure

12 Business attributes delivering success Agenda 11 Financial strength Quality products The best people Service reliability and excellence Genuine value added service Embrace innovation and change

13 Financial review 12

14 Financial highlights excellent performance Agenda Revenue 205.6m 183.1m +12% EBITDA 53.8m 44.3m +21% EBITA 28.8m 21.8m +32% Profit before tax and amortisation 26.8m 20.1m +33% Net margin 13.0% 11.0% ROACE 16.2% 13.5%

15 Earnings per share 30% increase Basic EPS 51.0p 39.8p +28% Basic EPS (pre amortisation) 54.5p 42.0p +30% Profit before tax and amortisation 26.8m 20.1m +33% Weighted average number shares 38.9m 39.5m Effective tax rate 20.8% 17.1%

16 Full year dividend per share 18% increase Agenda EPS pre amortisation 54.5p 42.0p +30% Full year dividend per share 16.5p 14.0p +18% Dividend cover 3.3x 3.0x Dividend per share (pence)

17 ROACE % Significant investing activity, ROACE further improved 16 % % % % 12.3% 13.0% 13.3% 13.5% *Average capital employed up by 16.1m to 177.3m

18 Strong balance sheet m m Property, plant and equipment % fleet Intangible assets Net working capital (9.3) (1.3) Deferred tax/pension (3.3) (3.9) Capital employed Modest increase Net debt (66.8) (53.0) Net assets Gearing 60% 49% Debtor days year end Bad debt write off as % turnover 0.3% 0.6%

19 Financial performance - strong cash generation Cash inflows EBITDA : 53.8m Cash outflows Net capex 40.9m Acquisition 5.5m Tax / Interest 4.9m Dividends 6.0m Other 10.3m Increase in net debt 13.8m

20 Bank facilities 19 Revolving credit 11 May 31 May m m Facility A to May 2020/May Facility B to Oct Facility C to Oct Total RCF Overdraft facility Total facilities Step up facility C/D March 31 March m m Net debt at year end

21 Headroom for growth Agenda EBITA Interest Cover Greater than 3 times FY 10 FY 11 FY 12 FY 13 FY 14 FY Net Debt / EBITDA Less than 2.5 times FY 10 FY 11 FY 12 FY 13 FY 14 FY 15

22 Supplementary schedules 21

23 Cash flow m m Operating profits Depreciation EBITDA Changes in working capital Gross capex (52.9) (39.5) Proceeds from disposals Profit on asset disposals (3.3) (2.9) Interest (2.0) (1.8) Tax (2.9) (3.9) Dividends (6.0) (5.0) Acquisitions (5.5) (4.5) Other (purchasing of own shares) (9.1) (6.9) Cash movement (change in net debt) (13.8) (7.7) Growth in EBITDA Increased capex Small increase in debt 22

24 Effective rate of tax Agenda March 2015 March 2014 % % 23 Standard rate Impact of tax rate change - (5.7) Permanent disallowables Chattels (0.9) (1.0) Prior year adjustments 0.1 (0.6) Non qualifying depreciation Overseas tax rate Other (0.4) - Effective rate

25 Group history 1954 to date 1954 Vibratory Roller & Plant Hire (Northern) Limited founded 1973 Floated on main market Vibroplant plc 1980 Shoring division established 1982 US powered access business established 1996 Tool Hire: Cannon Tool Hire acquired in Hire Station formed through merger of 5 regional tool businesses Shoring expansion through acquisition of Mechplant, Trenchshore & Eve Shorco 2006 Acquisition of Bukom Oilfield Services (Airpac Bukom formed) 2005 TPA and ESS acquired Mainland Europe - Groundforce Acquisition of "Mr Cropper" 2010 Geographical expansion: Global (Airpac Bukom). Eire (Groundforce), Germany (TPA) First move into specialist plant - Airpac Groundforce acquired from SGB 1997 Rail: Torrent Trackside acquired 2000 UK Forks division created 2001 Renamed Vp plc Continuing growth in specialist areas via acquisitions of MEP and U Mole 1996 Exit from USA; UK specialist businesses expanded Turnover: 1970: 2m 1980: 14m 1990: 70m 2000: 55m 2010: 128m 2013: 167m 2014: 183m 2015: 206m

26 Agenda 25 National hire of telescopic handlers/rough terrain forklifts: Only UK national telehandler specialist Fleet of c.1600 machines Strategically located distribution network Markets: General construction, housebuild and industry Opportunities: Housebuilding, construction, new products and market share growth

27 26 UK market leaders in the rental and sale of shoring products and solutions: Groundforce has the largest excavation support fleet in the UK and Ireland Plus specialist products and services Piltec & Mr Cropper - piling equipment Stopper Specialists - pipeline pressure testing Shorflo - pumps U' Mole - trenchless technology Markets: Civil engineering (including regulated AMP programme), construction and housebuilding Opportunities: Infrastructure, construction and Europe

28 Agenda 27 International rental of high pressure air compressors, steam generators and specialist equipment supported by skilled engineers: Global network of six service and distribution facilities located in the UK (Aberdeen and Great Yarmouth), Singapore, Australia, Middle East and Latin America Rental assignments in more than 60 countries Markets: Well testing, rig maintenance, gas transfer, LNG Opportunities: Leveraging global network via regional hubs

29 Agenda 28 Tool hire and specialist equipment for construction and industry: Local tool hire branches supported by national call centre Plus specialist products and services ESS Safeforce - safety equipment and confined space training MEP - press fitting, electrofusion and low level access Markets: Construction, industry, civil engineering, housebuild, DIY Opportunities: Specialist products, construction sector and market share growth

30 Agenda 29 One of Europe's largest suppliers of temporary access solutions: Operations in UK, Republic of Ireland and Germany Skilled installation of bespoke roadways and walkways Markets: Transmission, construction, rail and outdoor events Opportunities: Regulated transmission programme, new products and European growth

31 Agenda 30 Provision of rail specific light plant, trackside lighting and skilled trackside personnel: Genuine 24/7 x 365 national support The widest range of specialist portable rail equipment in the UK Significant safety and compliance barriers to entry in a regulated market Markets: Maintenance and renewals projects on national rail network, London Underground and Network Rail maintenance contract Opportunities: CP5, maintenance, London Underground