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Vp plc 2008 Preliminary Results: Strong Growth and Diversification Strategy

Discover the performance summary, operational highlights, and business expansions of Vp plc in 2008. Explore the financial review, strategic investments, and future growth initiatives outlined by the Chairman Jeremy Pilkington, Group Managing Director Neil Stothard, and Group Finance Director Mike Holt.

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Vp plc 2008 Preliminary Results: Strong Growth and Diversification Strategy

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  1. Preliminary Results 2008 Jeremy Pilkington - Chairman Neil Stothard – Group Managing Director Mike Holt – Group Finance Director Vp plc - The Equipment Rental Specialist

  2. Performance summary

  3. Operational Review

  4. 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

  5. Strength through diversity

  6. Business performance

  7. 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

  8. 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

  9. Investing for future growth Capital Expenditure

  10. 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)

  11. Financial Review

  12. Financial highlights

  13. Earnings and dividend per share

  14. Components of profit growth (39%)

  15. Robust balance sheet

  16. Strong cash flow and re-investment

  17. Increased net debt but modest gearing

  18. Quality returns Operating Margin (%) Return on Average Capital Employed (%) Earnings per share (pence) Dividend per share (pence) CAGR = 26% CAGR = 20%

  19. Financial summary • Pre tax profit growth +39% • Operating margins 15.6% • Operating cash flows +42%

  20. Summary

  21. 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

  22. Excellent business momentum and consistency Operating Profit (£m) Revenue (£m) CAGR = 15.6% CAGR = 26.8%

  23. Shareholder return Vp Total Shareholder Return

  24. Preliminary Results 2008 Vp plc - The Equipment Rental Specialist

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