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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.

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Presentation on theme: "Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Vp plc Interim Results for the six months ended."— Presentation transcript:

1 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 2011

2 Agenda Summary Operational review Financial review Conclusion 1

3 Results Summary 2

4 Excellent profit and revenue growth in a challenging trading environment Significantly increased fleet investment Modest increase in borrowings – strong cash generation ROCE and net margin improved Diversity smooths impact of individual sector dynamics Highlights – sector leading performance 3

5 Revenue and operating profit trends Revenue (£m) Operating Profit (£m) FY FY 2012

6 Group structure 5

7 Market diversity 6

8 Divisional overview All divisions profitable Profit growth from UK Forks/Torrent Trackside/Airpac Bukom Increased capex - supporting growth opportunities Improved utilisation and pricing countering some supply cost inflation Quality returns – double digit margins, double digit ROCE Current year strength in Regulated Markets, Oil & Gas and Housebuild European expansion continues in TPA and Groundforce Financial strength enables the business to respond quickly 7

9 Business performance 8

10 Fleet capital expenditure 9

11 Operational outlook Markets offer opportunity though general construction is expected to remain weak Quality of opportunity governs investment decision Overseas activities will continue to develop Macro challenges ongoing, but we are confident in our ability to maintain our strong track record 10

12 Financials 11

13 Highlights 12

14 Earnings and dividend per share 13

15 Quality returns Operating margin (%)Return on Average Capital Employed (%) Earnings per share (pence)Dividend per share (pence)

16 Robust balance sheet 15

17 Operating cash flow 16

18 Modest gearing, comfortably within covenants Net debt Underlying gearing Interest cover (12 months) Net debt / EBITDA (12 months) 17

19 Bank facilities 18

20 Vp qualities that will deliver further progress Resilient –market leading positions –diverse markets –specialist Consistent –quality returns, even in downturn Financial –positive cash generation –strong balance sheet Sustainable –consistently enhancing shareholder value 19

21 Presentation to Carillion The Equipment Rental Specialists 9 th June 2010 The Equipment Rental Specialists Supplementary Schedules 20

22 Net working capital 21

23 Effective rate of tax 22

24 Group history – 1954 to date Turnover 1970: £2m 1980: £14m1990: £70m2000: £55m2010: £134m2011: £141m 23

25 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 °Piletec – piling equipment °Stopper Specialists – pipeline pressure testing °Shorflo – pumps °U Mole – trenchless technology Markets: Civil engineering (including regulated AMP programme), construction and housebuilding Opportunities: AMP 5 European growth 24

26 National hire of telescopic handlers/rough terrain forklifts : Only UK national telehandler specialist Fleet of c.1200 machines Strategically located distribution network Markets: General construction, housebuild and industry Opportunities: Housebuilding improvement Market share growth 25

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: Recovery in well test market New applications Greater penetration of under represented geographic regions 26

28 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 Opportunities: Network Rail maintenance contract LUL, Crossrail, renewal activity 27

29 Europes market leader in portable roadways: Operations in UK, Republic of Ireland and Germany Skilled installation of bespoke roadway and fencing solutions Markets: Transmission, outdoor events, rail, construction - UK and Europe Opportunities: Regulated transmission programme New products European growth 28

30 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 and electrofusion equipment °Climate Hire – heating and cooling products °Virtual Hire – own brand partnerships, e.g. Homebase, Garden Centre Group Markets: Construction, industry, civil engineering, housebuild, DIY Opportunities: Specialist products Market share growth 29


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