Vp stays confident
28 November 2023
In its interim results announced today for the six months to 30 September 2023, Vp reports an increase in revenue of 2.4% of £190.9m compared with the same period last year (£186.5m), with adjusted profit before tax rising to £21.9m from £21.5m, an increase of 1.9%.
Capital investment in the hire fleet reduced by 17.8% to £27.8m, compared against £33.8m.
Vp comprises Brandon Hire Station, Groundforce, portable roadway business TPA, safety specialist ESS, mechanical and electrical equipment provider MEP Hire, Torrent Trackside and UK Forks in this country, along with Airpac Rental serving Australia and the international TR Group activity.
The group says that its key infrastructure markets including water (AMP7), rail (CP6) and transmission were supportive, whilst general construction activity remained soft. It believes housebuilding fundamentals to be positive over the medium term with current activity being stable but marginally below prior year levels.
Vp says the announcement of the cancellation of HS2 beyond Birmingham was not unexpected and will have little impact on immediate business activity. It hopes that activity from alternative rail initiatives, replacing HS2, will provide opportunities for its TPA UK and Groundforce activities in particular.
Vp Chairman Jeremy Pilkington says that Brandon Hire Station has suffered from the softness of the general construction market and its performance is materially below prior year levels. He believes that, with a new management team in place with targeted revenue and cost initiatives being implemented, the business can respond to an upturn in demand without requiring significant additional capital investment.
Torrent Trackside (pictured) had a solid first half ahead of prior year levels, and as it is more concerned with maintenance rather than new-build activity, the curtailment of HS2 is not expected to have a major negative impact.
“Having multiple sector exposure diversifies our revenue streams and has contributed to the robust performance in the period, with infrastructure demand remaining supportive,” said Jeremy Pilkington.
“Vp has an excellent track record of successfully navigating difficult markets and the diversity of our operations provides us with a solid foundation from which to grow the business both organically or via acquisitions. There is a great sense of enthusiasm throughout the Group, driven in part by a refreshed leadership team, which makes us optimistic for the future and our ability to continue to deliver an attractive level of returns for our shareholders. The Board anticipates a full year performance broadly in line with market expectations.”
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