Vp stays resilient
29 November 2022
Vp’s interim results announced today for the six months ended 30 September 2022 show a resilient performance despite the challenging wider economic background.
The group reports a pre-tax profit of £21.5 million compared with £20.2 million for the same period last year, representing a six per cent increase, with revenues at £186.5 million up from £176.1 million, again rising by six per cent.
Statutory profit before taxation was lower by four per cent at £17.9 million (H1 2022: £18.6 million), impacted by £1.9 million of exceptional costs in relation to formal sale process costs and restructuring costs involved in the aborted attempt to find a buyer for the business earlier this year.
Vp states that the results reflect sustained demand across the group's business units, with improved return on average capital employed, and that its UK division delivered a “very satisfactory” performance driven by infrastructure and a resilient house building sector. International Division revenues increased by 28 per cent and operating profits doubled.
Vp comprises Brandon Hire Station, Groundforce, portable roadway business, TPA, safety specialist ESS, mechanical and electrical equipment provider MEP Hire, Torrent Trackside, UK Forks, Airpac Rental and TR Group in Australasia.
Chairman Jeremy Pilkington said: "Our businesses have continued to make good progress in their engagement with customers and supply chain partners to deliver sustainable and innovative fleet solutions as we collectively strive to reduce emissions.
"The period under review has seen continued inflationary pressure on fleet capital costs, transport, fuel, wages, utilities and interest costs, but we have largely mitigated these with agreed price increases combined with a diligent focus on efficiencies within our business. We expect these actions to remain a priority for the foreseeable future.
Notwithstanding these challenges, we remain alert to quality growth opportunities whether organic or via acquisitions and we remain confident of delivering a full year outcome in line with the Board's expectations."
"Capital investment in equipment was £33.8 million (H1 2022: £31.7 million) with a continuing emphasis towards environmentally friendly products as customers seek greener alternatives.
For the UK division, the infrastructure sector remains a major business driver with the key water (AMP7) and rail (CP6) programmes now coming on stream more strongly. Vp says transmission demand has been good but HS2 work has been quieter than anticipated with the transition to phase 2.
The group states that, while new non-residential construction has remained soft, commercial re-purposing of property has emerged as a buoyant alternative, adding that “Housebuilding, despite popular commentaries, remains a resilient and important market for us with good long-term prospects.”
● Allison Bainbridge, Vp group finance director, will retire and step down from the Board on 31 December. She will be succeeded by Anna Bielby who will join as chief financial officer on 1 January. Allison will remain in the business to support with the transition until 31 January.
Anna Bielby qualified as a chartered accountant with PwC where she was a director in its audit and consulting teams. Her other roles include chief financial officer of communications business KCOM Group and most recently interim chief financial officer at car dealer Lookers.
Jeremy Pilkington commented: "Allison has been group finance director and a highly valued member of our Board since March 2011. I would like to thank her for her very considerable contribution over these eleven years during what has been a period of material and successful growth for the Group.”
Also, Stephen Rogers, who has been a Vp non‐executive director since October 2008, will retire from the Board on 31 December, with two new non-executives being appointed from 1 January. Stuart Watson was most recently a non‐executive director and audit committee chair at Clipper Logistics, and Mark Bottomley is chief financial officer at food producer Cranswick.
