Strong Vp performance
30 November 2021
Vp reports a strong performance in its interim results announced today for the six months ended 30 September 2021 and anticipates further growth through the second half of the year and beyond.
Profits before tax, amortisation and exceptional items rose to £20.2m (H1-2021: £8.6m) on revenues of £176.1m (£142.1m). Statutory profit before taxation was £18.6m (£6.0m loss) and EBITDA increased to £44.5m (£34.1m).
Return on average capital employed was 13.5% (10.3%) and Vp says that capital investment in equipment amounted to £31.7m (£14.6m) as the post-lockdown recovery created opportunities to re‐invest in the hire fleet.
The UK Division, whose businesses include Brandon Hire Station and Torrent Trackside, delivered operating profits before amortisation and exceptional items more than doubling to £21.8m (£9.9m) on revenues ahead 25% to £160.8m (£128.9m). Statutory operating profit was £23.3m (£11.5m).
Vp reports that major infrastructure projects such as HS2 remain key markets, supported by “very buoyant” housebuilding activity. The company adds that AMP7 (water) and CP6 (rail) infrastructure programmes have seen some delays in their implementation but this is expected to improve in the second half and beyond.
The group has signed up to the Science Based Targets Initiative to reach net‐zero global emissions by 2050 and will, over the next 24 months, set goals in line with these commitments.
Vp Chairman Jeremy Pilkington said the results reflected “a strong and continuing recovery in all of our businesses and delivery of market leading profit margins.”
He continued, "Very encouragingly, some of our businesses are already trading in line or ahead of expectations. Where this is not the case, it is generally down to factors such as the longer‐term cyclical nature of some of our infrastructure markets and localised supply chain constraints which are impacting elements of the construction sector.”
He said that Vp expects these markets will recover further to give more opportunities for growth and that “we look to the future with much optimism."
Vp recently acquired M&S Hire based in Sittingbourne which specialises in supplying access systems and working at height equipment in Greater London and will now be be integrated into the MEP Hire business.
● For more news stories click here.
