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Discover Vp plc's operational highlights, financial review, and strategic response during challenging market conditions in the first half of 2008. Learn about the company's diverse market exposure, strong shareholder return potential, and robust balance sheet.
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Interim Results for the six months ended 30 September 2008 Jeremy Pilkington - Chairman Neil Stothard – Group Managing Director Mike Holt – Group Finance Director Vp plc - The Equipment Rental Specialist
Operational highlights • Operating profits 18% up at a margin of 19.5% • Healthy net capex of £13.2m • 4 acquisitions - £5.0m • Good AMP4 and infrastructure demand • Oil and gas exploration • Weak housebuilding • Strong start but changing trends
Further progress against challenging market backdrop • Selective acquisitions • Redding Hire, Arcotherm (UK) Ltd, DJ Tool Hire and UCS Plant • Acquisition post half year end : Power Tool Supplies • Quality maintained • Good earnings growth • Margins improved further • Maintained return on capital at 19%
Our response to challenging times • Market diversity provides resilience • regulated markets • oil and gas • Managing for tougher conditions • careful cost control • reducing capital investment • reduced acquisition plans • Opportunity still exists • organic product extensions • current year specialist acquisitions • bolt on acquisitions and new branches • overseas markets
Continued growth, albeit slowing Operating Profit (£m) Revenue (£m) Actual H1ActualBrewin Dolphin Forecast
Resilient business model • Strong market positions • Diverse offering provides resilience to individual market fluctuations • Adding value through products, services and operating efficiency • Organic product extension and acquisitions provide seeds for further growth • Balance sheet strong • Financing and covenants robust • Strategically focussed on specialist rental sectors
Interim Results for the six months ended 30 September 2008 Vp plc - The Equipment Rental Specialist
Vp plc - The Equipment Rental Specialist Supplementary data
Investment case • Specialist rental business • Diversified market exposure • Market leading positions • Strong value added service element • Double digit earnings growth potential • Building sustainable capabilities • Consistent performer with quality returns
UK Forks • Rough terrain material handling equipment for industry, residential and general construction
Groundforce • Excavation support systems, specialist solutions and trenchless technology for the water, civil engineering and construction industries, incorporating: • - Groundforce Shorco : shoring • - Piletec : pile driving and breaking • - Stopper Specialists : pipe integrity testing • - Survey Technology : surveying and water flow measurement • - U Mole : trenchless technology
Airpac Bukom Oilfield Services • Equipment and service providers • to the international oil and gas • exploration and development • markets
Hire Station • Small tools and equipment for industry and construction incorporating: • - Hire Station : tool hire products • - ESS Safeforece : safety and environmental products • - Lifting Point : materials handling and lifting gear products • - MEP : pipe fitting equipment • - Climate Hire and Sales : warm, cool, clean and dry air products
Torrent Trackside • Infrastructure equipment and services for the railway renewals and maintenance industry
TPA • Portable roadway systems, bridging, fencing and barriers primarily to the UK market, but also in the Republic of Ireland and mainland Europe
Quality returns Operating Margin (%) Return on Average Capital Employed (%) Earnings per share (pence) Dividend per share (pence) ActualBrewin Dolphin Forecast