Vp trading update
6 October 2020
In a trading update today, Vp plc reports that group revenues are running at approximately 85% of pre-Covid levels.
It says that the initial positive impact from the re-opening of customers’ existing sites has slowed and the business has become more reliant on new projects starting.
The group, whose businesses include Brandon Hire Station, initially mothballed about 120 locations. Over 100 of these are now fully operational, but 17 have been merged or closed with 150 redundancies in UK and overseas businesses.
Net debt has reduced to £118.7m at 30 September 2020, compared with £159.7m at 31 March 2020.
Vp says that markets are “generally stable” and that infrastructure work, in particular, should be supportive as projects such as the AMP7 water industry review, HS2 and Hinkley Point programmes start to gain momentum.
It adds, however, that it remains “slightly cautious with regard to the short to medium term prospects as we await evidence of a recovery in confidence and the commencement of new projects.”