Vp plc

1
Vp plc The Equipment Rental Specialist Prelimin
ary Results For the year ended 31 March 2006
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Agenda

• Highlights
• Jeremy Pilkington Chairman
• Financial Review
• Mike Holt Group Finance Director
• Business Review
• Neil Stothard Group Managing Director

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Highlights

• Operating profit 17 to 12.0m
• PBT 13 to 11.2m
• EPS 12 to 18.3 pence
• Hire Station profit recovery
• 4 significant acquisitions completed - 36m
• Markets supportive - outlook positive

Pre restructuring costs
4

• Financial Review
• Mike Holt
• Group Finance Director

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Financial Highlights
Prior year restated for IFRS
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Earnings per share and Dividends
Prior year restated for IFRS
7
Revenue(m)
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Profit Before Interest and Tax (m)
Pre one-off restructuring costs Restated for
IFRS
9
Return on Average Capital Employed ()

Restated for IFRS
10
Dividend / Earnings (pence per share)
Basic EPS restated for IFRS
11
Balance Sheet
Prior year restated for IFRS
12
Operating Cash Flow
Prior year restated for IFRS
13
Cash Flow
Prior year restated for IFRS
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Acquisitions
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Net Debt
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Financial Summary

• Operating profits (pre one-off costs) up 17 to
  12.0m
• Profit before tax up 8 to 10.7m
• Operating cash flows remain strong (1.9x profits)
• Acquisitions totalled 44m (7.9m deferred)
• Fleet additions totalled 20.8m (39)
• Gearing increased to 54 (still modest)
• Interest cost covered 14.5x
• New loan facilities support further growth

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• Business Review
• Neil Stothard
• Group Managing Director

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Segmental Analysis
Pre 0.5m one-off restructuring costs
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UK Forks
Rough terrain material handling equipment for
industry, residential and general construction
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UK Forks
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UK Forks

• Excellent profit result
• Good housebuilding and general construction
  demand
• National and regional accounts developing well
• Revenue growth delivered incremental margin
• Slower final quarter
• Prospects remain good subject to market

22
Groundforce

• Groundforce Shorco
• Piletec Dudley Vale
• Stopper Specialists
• Survey Technology

Excavation support systems and specialist
products for the water, civil engineering and
construction industries
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Groundforce
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Groundforce

• Profits reduced as anticipated
• Good performance from Shoring division
• AMP4 delay affected Specialist divisions
• Piling division expanded via Dudley Vale
  acquisition
• Survey business consolidated Birse purchase
• Formwork division established
• Remains well placed to leverage off AMP4 driven
  activity

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Groundforce Dudley Vale acquisition

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

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Airpac Bukom Oilfield Services

• Aberdeen
• Great Yarmouth
• Singapore

Equipment and service providers to the
international oil and gas exploration and
development markets
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Airpac Bukom Oilfield Services
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Airpac Bukom Oilfield Services

• Solid profit performance
• Strong demand for North Sea well testing and rig
  maintenance
• Acquisition of Bukom delivers new products and
  geographical expertise
• Significant additional investment committed for
  new financial year
• Market prospects remain positive

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Bukom Oilfield Services

• Acquired March 2006
• Long established competitor
• Leading international supplier of equipment and
  services to global oil and gas exploration market
• Doubles size of our oil and gas business
• Improves our penetration of African and South
  American markets
• Increases breadth of products to offer to our
  customers
• Integration has gone well

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Hire Station

• Hire Station
• ESS Safeforce
• Lifting Point

Tools and specialist products for industry and
construction
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Hire Station
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Hire Station

• Excellent turnaround to profit
• Good organic growth in tools
• Central hire desk operating well
• Strong investment levels in core products
• Continuing sales success
• Lifting Point expanded via additional satellites
• Pivotal Services Group acquisition

33
Pivotal Services Group acquisition

• Acquired July 2005 from Babcock
• Loss making business restructured at 0.5m cost
• Market leader in safety rental, servicing and
  sales
• Confined Space entry training complementary
  offering
• Integration with Safeforce, trading as ESS
  Safeforce
• Health Safety and Management Development
  training trading as Pivotal Performance

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

• Renewals demand quieter but stable
• Reduced revenue levels from Network Rail plant
  maintenance contract
• Success in continuing as secondary provider in
  maintenance market
• Good progress on London Underground
• Product expansion
• Market has improved in short term and the year
  finished well

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TPA
Portable roadway systems, bridging, fencing and
barriers
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TPA
39
TPA

• Acquired November 2005
• Separate trading division of Vp
• Portable aluminium roadways and barriers
• Events, construction, rail and power
  transmissions markets
• Experienced management team

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TPA

• Quiet winter trading period
• New Year has started strongly
• Significant additional investment to meet current
  demand
• Events market good
• Construction activity improving
• Business positioned for further growth
• Market opportunities remain strong
• Prospects for current year positive

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Summary

• Another year of significant development for Vp
• Further good progress for established business
• Excellent turnaround at Hire Station
• UK Forks performance very strong
• Certain markets quieter, but medium term remains
  positive

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Summary

• Leveraging balance sheet to create growth
  opportunities
• Identified and secured four quality acquisitions
• All command or complement significant market
  positions
• All fit our core skill set
• Integration process has gone well
• Impetus for further growth in current year and
  beyond
• Enter the the new financial year in excellent
  shape

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Total Shareholder Return