2 The Equipment Rental Specialists
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
3 The Equipment Rental Specialists
Group thumbnail
The Equipment Rental Specialists
● 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
4 The Equipment Rental Specialists
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
5 The Equipment Rental Specialists
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
6 The Equipment Rental Specialists
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
7 The Equipment Rental Specialists
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)
8 The Equipment Rental Specialists
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
9 The Equipment Rental Specialists
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
10 The Equipment Rental Specialists
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
11 The Equipment Rental Specialists
Business attributes delivering success
The Equipment Rental Specialists
● 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
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!
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
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 2
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
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 3
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
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 4
Product Range
Trench Boxes
Sheets & Braces
Propping
Safety
Complementary fleet
Focus on Excavation Support
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 5
Fixed steel solution Traditional methods
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 6
Markets & Key Customers
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 7
Extensive Coverage
Operating Depots
Regional Call Centres
UK & Ireland Centric
19 Depots & Offices
EU Distribution
Rental Footprint
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 8
Scale of engineering
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 9
Differentiators
Peace of
Mind
Ease of Transaction
Quality of Assets
Size and Range of Fleet
Added Value
People
Innovation
Specialism Technical Leadership
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 10
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
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 11
Technical Innovative Solutions
Wandsworth, London 40m clear span facilitating work underneath
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 12
Technical Innovative Solutions
Liebigstraße Frankfurt Support required for adjacent building
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 13
Technical Innovative Solutions
Liebigstraße Frankfurt Old methods meet new
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 14
Technical Innovative Solutions
Therisienstrasse, München Leapfrog throughout the length
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 15
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.
Technical Innovative Solutions
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 16
Technical Innovative Solutions
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
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 17
Technical Innovative Solutions
Doha, Qatar Exceeding extreme demands
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 18
Technical Innovation
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 19
Industry Recognition Industry Recognition
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 20
Continuing Growth
Self Help
Geographic Infills
Product Range Extensions
Technology Adoption
New Product Development
Opportunistic Bolt-On Acquisitions
Strategic Platform market entry
Groundforce | Specialist Construction Solutions | www.vpgroundforce.com Slide 21
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
Top Related