ProService Building Services Marketplace (PRO) H1 2024 earnings summary

Executive summary

• Revenue grew 3.2% year-over-year to £170.8m in H1 2024, outperforming the UK equipment rental market despite seasonal and end-market softness.

• Strategic separation of ProService and Operations to be completed by end of September 2024, enabling independent growth strategies and management teams.

• ProService marketplace adoption accelerated, with buyers up 38% year-over-year to 2,200 and double-digit services growth.

• Sale of Power businesses completed in March, with proceeds used to reduce debt and strengthen the balance sheet.

• Interim dividend maintained at 0.18p per share, reflecting board confidence in strategy and financial position.

Financial highlights

• Adjusted EBITDA was £26.9m, down from £28.9m in H1 2023; Adjusted EBITA was £7.3m, down from £10.8m, mainly due to seasonal weakness and increased technology costs.

• Adjusted profit before tax fell to £1.2m from £5.0m; adjusted basic EPS declined to 0.13p from 0.55p.

• Net debt reduced to £37.9m (non-IFRS16), down £17.2m year-over-year, with leverage at 1.0x; IFRS16 leverage at 1.5x.

• ROCE at 14.9%, down from 18.0% but remains above cost of capital.

• Cash conversion well over 100%, with liquidity headroom of £75m.

Outlook and guidance

• Guidance withdrawn during the transition period due to business separation and operational changes; timing for reinstatement will be reviewed.

• Market remains flat post-election, with no immediate bounce-back, but industry indicators and macroeconomic data suggest growth in 2025.

• Capital Markets Days planned for Q2 2025 to detail growth strategies for both businesses.

• Board remains confident in resilience and ability to capitalise on market recovery, with new contracts mobilising in H2.