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Vp plc The Equipment Rental Specialist Interim Results For the six months ended 30 September 2005

Vp plc The Equipment Rental Specialist Interim Results For the six months ended 30 September 2005. Agenda. Highlights : Jeremy Pilkington – Chairman Financial Review : Mike Holt – Group Finance Director Business Review : Neil Stothard – Group Managing Director. An Excellent Start.

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Vp plc The Equipment Rental Specialist Interim Results For the six months ended 30 September 2005

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  1. Vp plc The Equipment Rental Specialist Interim Results For the six months ended 30 September 2005

  2. Agenda • Highlights : • Jeremy Pilkington – Chairman • Financial Review : • Mike Holt – Group Finance Director • Business Review : • Neil Stothard – Group Managing Director

  3. An Excellent Start • Underlying PBT +19% to £5.9m – entirely organic, no contribution from acquisitions • Group PBT +11% to £5.5m • EPS +10% to 8.96p • ROCE increased to 17% • Interim dividend lifted 11% to 1.95p

  4. An Excellent Start • Hire Station in profit - £0.9m v p.y. £0.3m loss • 3 significant acquisitions completed : Pivotal Services Group – July : £4.5m : TPA – November : £11.5m + 3 year earn-out : Dudley Vale – November : £3.5m • New banking facilities

  5. Financial Review Mike Holt Group Finance Director

  6. Financial Highlights *Pre Pivotal one-off costs

  7. Earnings per share and Dividends

  8. Revenue(£m)

  9. Profit Before Interest and Tax (£m) Restated for IFRS

  10. Return on Capital Employed (%) % H1 Restated for IFRS

  11. Dividend / Earnings (pence per share) H1 H1 Basic EPS

  12. Balance Sheet

  13. Operating Cash Flow

  14. Cash Flow

  15. Acquisitions Pivotal Services : - initial cost £4.5m - adjusted cost £3.9m Trax Portable Access : - initial cost £11.5m - deferred £7.9m Dudley Vale : -cost £3.5m

  16. Net Debt

  17. Loan Facilities • Existing loan facilities replaced by a new loan facility: - Five year facility (previously 3 years) - £45m facility (previously £8m) - Club deal (previously single bank) • New facility provides further leverage to fund future acquisitions

  18. Business Review Neil Stothard Group Managing Director

  19. Segmental Analysis *Pre-Pivotal one-off costs

  20. Groundforce • Groundforce Shorco • Piletec Dudley Vale • Stopper Specialists • Survey Technology Excavation support systems and specialist products for the water, civil engineering and construction industries

  21. Groundforce

  22. Groundforce • Market Leader in ground support systems • Core shoring demand remained good • AMP4 delay affecting specialist divisions • Acquisition of Dudley Vale - November 2005 • Continuing fleet rationalisation programme • New products introduced e.g. Formwork • Division remains well placed to embrace AMP4 driven demand

  23. UK Forks Rough terrain material handling equipment for industry, residential and general construction

  24. UK Forks *Including new operating lease commitments

  25. UK Forks • Unique service offering – attracting customers • Progress in housebuilding and general construction • Regional and national successes • Revenue growth has leveraged structure • Fleet growth to over 1,200 machines • ROCE continues to improve • Markets stable but remain very competitive

  26. Airpac Oilfield Services • Aberdeen • Great Yarmouth • Singapore Equipment and service providers to the international oil and gas exploration and development markets

  27. Airpac Oilfield Services

  28. Airpac Oilfield Services • Solid performance • Strong demand from North Sea – well testing and rig maintenance • International project activity quieter but improving • Product expansion • Geographic growth opportunities remain • Market prospects remain positive

  29. Hire Station • Hire Station • ESS Safeforce • Lifting Point Tools and specialist products for industry and construction

  30. Hire Station *Pre Pivotal one-off costs £0.4m

  31. Hire Station • Substantial profit turnaround after prior year losses • Management actions bear fruit • Key account wins aid revenue growth • Efficient cost structure in place • Investment in core products • One Call central hire desk complete

  32. Hire Station • Specialist Products further recovery • Pivotal acquisition key development • ESS Safeforce created – market leader • Confined Space Entry training • Potential remains for further improvement overall

  33. Torrent Trackside Portable rail infrastructure equipment, lighting and related services for the railway renewals and maintenance industry

  34. Torrent Trackside

  35. Torrent Trackside • Remains a quality business • Network Rail maintenance plant contract impact • Maintenance activities continue as secondary provider • Renewals remains stable • Further progress with LUL • Product expansions/further opportunities • Market remains flat

  36. ACQUISITIONS

  37. TPA Portable roadway systems, bridging, fencing and barriers

  38. TPA • Acquired 4 November 2005 • Portable aluminium roadways • Fencing and barriers • Events, construction, rail and power transmissions markets • Experienced management team • Market opportunities remain strong • Business positioned for further growth • Separate trading division of Vp

  39. Pivotal Services Group • Acquired July 2005 from Babcock • Safety equipment rental sales and maintenance • Confined Space Entry Training • Integration with Safeforce, trading as ESS Safeforce • Health & Safety and Management Development training • Now trading as Pivotal Performance

  40. Dudley Vale • Acquired 25 November 2005 from GE • Rental and sale of piling hammers and pile breakers • Merged with Piletec division of Groundforce • Trading as Piletec Dudley Vale

  41. Summary • Period of further profit improvement – all organic • Business markets varied, but generally positive • Delivering on growth strategy with acquisitions • Further opportunities for growth will be pursued • New banking facilities in place • Finances remain in excellent shape • Platform set for coming year • Continuing to deliver value to shareholders

  42. Total Shareholder Return

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