Strong Vp performance
8 June 2022
In its results issued today for the year ending March 31 2022, Vp reports a 14 per cent increase in revenue to £350.9m from £308.0m. Profit before tax rose by 67 per cent to £38.9m from £23.3m.
The group’s UK businesses include Brandon Hire Station, UK Forks, Groundforce, portable roadway supplier TPA, Torrent Trackside, MEP Hire and safety specialist ESS. Vp reports growth in operating profits across these, driven by the strength of certain infrastructure, construction and housebuilding sectors.
Vp has also achieved two substantial contract wins in March, namely the Pembrokeshire Valero refinery’s renewal of a long-running support contract, and a new five-year hire partnership agreement with Watkin Jones including the acquisition of the developer’s in-house plant and tools fleet.
Capital investment in the hire fleet grew almost 50 per cent to £59.8m (2021: £40.2m) with particular emphasis on lower emission products.
Vp states that Brandon Hire Station secured further recovery particularly in the early months of the financial year, but that activity levels subsequently flattened. It says that construction markets were led by a buoyant repair and maintenance segment, whilst new-build construction was less busy and impacted by materials and labour shortages.
In early 2022 Brandon Hire Station's new website was launched and developed as an app for mobile devices, regarded as an area of growth potential. The business also gained FORS Gold vehicle fleet accreditation for driving standards and safety processes, as well as the ISO 50001 standard for environmental performance, energy efficiency and sustainability.
Vp announced in April that it was for sale following its controlling shareholder’s intention to diversify its investments.
The group reports an “encouraging start to the new financial year” with an anticipated increase in work relating to the AMP7 waste water project and other infrastructure activity.
Jeremy Pilkington, Vp chairman, said: "These results represent significant progress across the group, as the business continues its recovery following Covid related impacts and we have seen substantial progress across all key financial metrics.”
He added, "Although there are some macro related headwinds from cost inflation and supply chain disruptions, we see significant upside growth opportunities for this year and further ahead."
Chief executive Neil Stothard commented: "The quality of the recovery in our trading performance is extremely pleasing and these results demonstrate a significant increase in profitability and a material recovery in the quality of those profits. These strong results have been largely supported by the core markets which we serve.
"Over the last financial year, I am particularly pleased with our ESG initiatives where we have continued to invest in apprenticeships and our employees as well as our commitment to the environment. Throughout the year we continued to invest in our ambition to be net carbon zero by 2050 with all our businesses continuing to introduce new greener equipment solutions to their customers.
"Although there are widely reported macro issues for all businesses, we continue to meet current challenges on a day to day basis. I am optimistic of Vp's future prospects and believe our core markets will continue to offer good opportunities for further increases in demand for our products and services in the new financial year."
