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Preliminary Results 2008 Jeremy Pilkington - Chairman Neil Stothard – Group Managing Director Mike Holt – Group Finance Director. Vp plc - The Equipment Rental Specialist. Performance summary. Operational Review. Operational highlights. Operating profits 41% up at a margin of 15.6%
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Preliminary Results 2008 Jeremy Pilkington - Chairman Neil Stothard – Group Managing Director Mike Holt – Group Finance Director Vp plc - The Equipment Rental Specialist
Operational highlights • Operating profits 41% up at a margin of 15.6% • Excellent organic profit growth (82%) • Strong capital investment - £43m on rental fleet • 8 acquisitions - £11m • Strong remediation demand in summer • AMP4 buoyant • Weak rail market • International expansion
Investing for future growth • Groundforce • Acquisition of ‘U’ Mole trenchless systems business • Expansion into Ireland including acquisition of USS and PTA • Acquisition of Redding Hire • Hire Station • 9 new locations for tools including acquisition of ET Hire and DJ Tool Hire • Development of ‘virtual hire’ concept • Growth of Climate Hire business and Arcotherm acquisition • Acquisition of NSS and Able safety businesses • Airpac Bukom • International hub expansion and capital investment programme
Investing for future growth • UK Forks • Fleet expansion (+13%) to meet growing demand in general construction and reducing reliance on housebuilding sector • TPA • Development of MD40 lightweight roll out roadway • Further penetration /investment in Germany • Torrent • Acquisition of First Engineering rail plant fleet with 3 year supply agreement
Investing for future growth Capital Expenditure
Growth strategy progressing well • Continued organic growth • Significant net capital investment (2 x depreciation) • Increasing ‘share of wallet’ • Complementary/bolt on acquisitions • New products (U-Mole) • New markets (Cool Customers, Arcotherm, NSS, PTA, USS) • Consolidations (ET Hire, DJ, Redding, Able, FEL) • International expansion • Oil and gas hubs (Sharjah, Curaçao and Perth) • Ireland (Groundforce and Hire Station) • Germany (TPA)
Quality returns Operating Margin (%) Return on Average Capital Employed (%) Earnings per share (pence) Dividend per share (pence) CAGR = 26% CAGR = 20%
Financial summary • Pre tax profit growth +39% • Operating margins 15.6% • Operating cash flows +42%
Resilient business model • Strong and growing market positions • Diverse offering provides resilience to individual market fluctuations • Adding value through products, services and operating efficiency • Prior year initiatives and acquisitions provide continuing momentum • Balance sheet strong - capacity as required • Acquisitions will continue where value is identified • Continued profitable growth despite challenges • Current year has started well
Excellent business momentum and consistency Operating Profit (£m) Revenue (£m) CAGR = 15.6% CAGR = 26.8%
Shareholder return Vp Total Shareholder Return
Preliminary Results 2008 Vp plc - The Equipment Rental Specialist