capital markets day vp plc/media/files/v/vp-plc/company... · 2016-09-29 · customer compliance...

1 The Equipment Rental Specialists

Capital Markets

Day

Vp plc

28th September 2016


INTRODUCTION

The Equipment Rental Specialists

Vp representation:

Neil Stothard Chief Executive

Allison Bainbridge Finance Director

John Singleton Managing Director Hire Station

David Williams Managing Director Groundforce


Group thumbnail


● Rental specialist serving diverse markets

● UK and International divisions

● Over 60 years’ experience in the equipment rental market

● Full listing since 1973

● 2000+ employees; £209m revenues


Division Activity Market Geography

UK

Rough terrain fork lift trucks /

Tracked access

Housebuild, general

construction and industry UK

Excavation support systems

and

portable roadways

Civil engineering,

construction, transmission,

rail

UK

Germany

Ireland

Tool hire, safety equipment

and low level access

Construction, industry,

housebuild

UK

Netherlands

Rail specific plant and

operators National rail network and LUL UK

International

High pressure compressors,

steam generators and

ancillaries

Well testing, rig maintenance,

gas transfer and LNG

UK, Australia,

Singapore, Middle East,

South America

Test & measurement,

communications and audio

visual rental

Construction, defence,

education, events,

government, mining and

tele communications

Australia

New Zealand

Malaysia

Vp – main divisional brands


Vp markets

Infrastructure

44%

Construction

29%

Oil & Gas

9%

House

building

12%

Other

6% Market segment

Revenue to

31 March 2016

£m

Infrastructure* 92.1

Construction 60.0

Housebuilding 25.7

Oil & Gas 19.7

Other 11.2

Total 208.7

*Utilities, Rail, Transmission and Facilities Management


Revenue and profit trends

129.5 138.1

161.5 167.0

183.1

205.6 208.7

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015 2016

16.0

13.8 16.0

17.4

20.1

26.8

29.8

0

5

10

15

20

25

30

35

2010 2011 2012 2013 2014 2015 2016

(£m) (£m)

Revenue Profit before tax


Progressive dividend

10.8 10.8 11.4

12.3

14.0

16.5

18.9

0

2

4

6

8

10

12

14

16

18

20

2010 2011 2012 2013 2014 2015 2016

● Dividend growth

● Good cover (>3x)

● Maintained through the recession

(pence)


RO

AC

E %

13.0 13.3 13.5

16.2 16.3

6

7

8

9

10

11

12

13

14

15

16

17

2012 2013 2014 2015 2016

Estimated

WACC

Robust ROACE


STRATEGIC AIM HOW WE DELIVER WHERE FROM

• To generate

sustainable value

creation for

shareholders

• Utilising our

expertise in asset

management

• Exceeding

customer

expectations

• Maintaining and

leveraging our

financial strength

• Retaining and

attracting the best

people

• Serving diverse

markets in the UK

and overseas

Strategic aims


Acquisitions – delivering on strategic objectives

Test &

Measurement

(UK)

Higher Access

(UK)

TR Group Pty

(Australia,

Malaysia,

New Zealand)

• October 2015

• £3.95 million

• Instrumentation and

testing equipment

rental

• March 2016

• £4.1 million

• Specialist tracked

access platforms

• April 2016 (post y/e)

• A$17.4 million

• Test & measurement,

communications and

audio visual rental


Business attributes delivering success


● Consistent - quality returns

● Resilient – diverse markets,

specialist, market leading

● Sustainable – long term,

embrace change

● Financial strength

● Service reliability and excellence

● Genuine value added service

● The best people

Hire Station

Hire company of the year 2015

Safehire company of the year 2016

Contents

Who are Hire Station?

Trading Model Why we are successful Why we are different

Growth prospects

Innovation Valero

Pembroke Dock

John Singleton • 18 years with Vp plc

• Managed 5 of the 7 businesses • Broad sector experience

• Managed through 4 business cycles • Business requirements and tactics are very different

• Acquisition/Divestment/Greenfield – a place for all • Specialism works • Experience says the simple things deliver the best results

Who are Hire Station?

Asset management specialist serving the construction, industrial, housing & residential markets mainly in the UK

Part of the Group since 1998, the business has grown through a combination of acquisition and green field locations

Hire Station has 3 Specialist Business streams

Small tools, Lifting &

Climate

hire products

National Hire Centre

70+ locations

Tools MEP ESS Safeforce

Press fitting

Electrofusion

Low Level Access

10+ locations

Safety,Survey

products,

confined

space training

20+ locations inc 2

overseas

50% 14% 36%

Each business adopts Central Hire Desk concept

Sales team focus on select National but mostly Regional and local customers

Branches focus on AVAILABILITY RELIABILITY and COMPLIANCE

Central hire desk handles approx 60% of all customer transactions

IT systems give central desk Live Time view of rental assets and status

Business Model

Senior Management have full autonomy to run the business

> 80% of our hires are delivered

almost 50% of hires required same day

500 lines account for 93% of our hire revenue Always on the shelf

Continual replenishment programme

Market leading ROCE

Tertiary Industrial estate

Close to major conurbation

9-10,000 sq ft with showroom

10 year lease 5 year break

Typical Branches

Customer

Compliance

Availability

Yes Culture Loyal &

experienced Staff

Reliability

We are successful because we keep things simple – everything we focus on has to impact the customer or make us more efficient

The rental market is traditionally very reactive – genuine added value can be delivered by doing the basics extremely well .......... That is and will remain our key focus!

Those that can react...... win!

Example of how as Specialists we innovate

Valero – Pembroke Haven

Maintaining Growth • Expand Depot footprint

• Relocation & up to 10 new branches

• Market share gains via successful “Reactive Model” • Bolt on acquisitions • Overseas expansion • Entry into new specialist rental arenas

3% Market growth forecast in 2016

9% forecast for period 2017-2020... Source AMA

Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 1

Groundforce Division

Overview

David Williams

September 2016


Specialist Business Units

Excavation Support

Piling Equipment

Pipe Stoppers

Excavation Training

Temporary Bridging

Portable Roadways

Groundforce

Groundforce is the market leading rental

provider of excavation support systems

and specialist products for the water, civil

engineering and construction industries

in the UK, the Republic of Ireland and

mainland Europe


2013 2010

2008

2006

2003

1981 2004

2002

Turn

over

2016 2010 2006 2002 1998 1994 1990 1980

1990 2001

Our History Consolidation to Market Leadership


Product Range

Trench Boxes

Sheets & Braces

Propping

Safety

Complementary fleet

Focus on Excavation Support


Fixed steel solution Traditional methods


Markets & Key Customers


Extensive Coverage

Operating Depots

Regional Call Centres

UK & Ireland Centric

19 Depots & Offices

EU Distribution

Rental Footprint


Scale of engineering


Differentiators

Peace of

Mind

Ease of Transaction

Quality of Assets

Size and Range of Fleet

Added Value

People

Innovation

Specialism Technical Leadership


Technical Leadership

Value Engineers, practical & Safe Solutions

Compliant with CDM 2007 & BS 5975:2008

Major Project Specialists

Qualified & Experienced Engineers

In-house developed design software

ISO 9001/14001

Tool Box Talks Videos

Tailored Training Courses


Technical Innovative Solutions

Wandsworth, London 40m clear span facilitating work underneath



Liebigstraße Frankfurt Support required for adjacent building



Liebigstraße Frankfurt Old methods meet new



Therisienstrasse, München Leapfrog throughout the length


Crossrail is among the most significant

infrastructure projects ever undertaken in the UK.

Groundforce supplied high load capacity

hydraulically actuated struts which include a

dedicated on board load monitoring system.




St Helens Place, London Creating working space whilst providing support

Groundforce Shorco designed a complex

basement propping solution for one the UK’s

most delicate and challenging redevelopment

projects in London



Doha, Qatar Exceeding extreme demands


Technical Innovation


Industry Recognition Industry Recognition


Continuing Growth

Self Help

Geographic Infills

Product Range Extensions

Technology Adoption

New Product Development

Opportunistic Bolt-On Acquisitions

Strategic Platform market entry


Summary

Market Leading Specialist GoTo business in the industry

Excellent market reputation

40 years of trading

Range of Sectors & Markets Diversity delivering stability

Selective provider to EU market

Solution provider to key contractors

Robust Sales Programme National coverage with regional management

Disciplined Investment & Divestment Clear focus on ROI

Strong Management Team Appetite to grow

Development programme for next generation

A Business That Continues To Grow & Deliver Good Returns

capital markets day vp plc/media/files/v/vp-plc/company... · 2016-09-29 · customer compliance...

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