Interim Results

Vp PLC
27 November 2001


Date:     Embargoed until 7:00am Tuesday 27 November 2001
Contacts: Jeremy Pilkington, Chairman & Chief Executive
          Neil Stothard, Finance Director
          Vp plc
          Before 8:00am on 27 November only             Tel: [phone]
          Thereafter                                    Tel: [phone]



                           Vp plc: Interim Results



Vp plc, the specialist equipment rental group, announces its interim results
for the six months ended 30 September 2001:

  * Turnover of £31.9m (2000: £29.7m including terminated operations)
  * Group operating profit before goodwill amortisation of £3.4m (2000: £
    1.5m including terminated operations)
  * Earnings per share, before amortisation of goodwill, of 5.02p (2000:
    1.38p)
  * Recommended interim dividend of 1.4p per share
  * Net debt of £9.8m (31 March 2001: £12.8m) representing gearing of 22%

Post period end:

  * Purchase of assets and goodwill of the shoring business of Mechplant for
    £3.1m
  * Support Services re-classification



Jeremy Pilkington, Chairman & Chief Executive, comments:



'I believe that the actions we took last year, to exit from the low margin
general plant hire sector, have been justified as we begin to enjoy improved
returns within the Group.

Notwithstanding the background uncertainties about the state of consumer
confidence and the more specific uncertainties posed by the winter trading
period, your board believe the Group is well placed and look forward to a
satisfactory result for the year as a whole.'





 CHAIRMAN'S STATEMENT

I am pleased to report our first set of interim results since the exit from
general plant rental activities last year. Turnover in the six months ended 30
September 2001 rose to £31.9m; turnover in the prior period, excluding £3.6m
of revenue generated from terminated activities was £26.1m, an underlying
increase of 22%.

Operating profit before goodwill amortisation more than doubled to £3.4m
(2000: £1.5m) and profit before taxation increased to £2.9m (2000: £0.9m).
Earnings per share before goodwill amortisation rose to 5.02p (2000: 1.38p).

Cash inflow from operating activities was £7.3m (2000: £2.7m). Net debt at 30
September 2001 was £9.8m (31 March 2001: £12.8m). This represents gearing of
22% on shareholders' funds of £45.3m.

Your Directors are recommending payment of a maintained interim dividend of
1.4p per share payable on 7 January 2002 to shareholders registered as at 7
December 2001.

I am pleased to advise shareholders that the company has been re-classified by
the FTSE under Support Services with effect from 19 November 2001, better
reflecting the current composition of group activities.

SERVICES DIVISION

  * Turnover £12.1m (2000: £14.4m)
  * Operating profit £1.3m (2000: £125,000 loss)
  * Investment in rental fleet £3.5m (2000: £9.0m)

Prior year comparatives include terminated activities.

UK Forks

UK Forks has continued the successful expansion of its specialist rough
terrain materials handling business, utilising last year's significant capital
investment to secure longer term customer contracts and strengthen its market
share position.

The consolidation amongst the national house builders, a key customer segment
for the business, is accelerating the trend towards longer term negotiated
supply agreements. UK Forks, as the only national specialist hirer and with
its unique central reservations system, is well positioned to capitalise on
the opportunities presented by this type of work.

Groundforce

Groundforce experienced a quiet start to the year. The water industry's latest
5-year asset management plan (AMP3) was slow to translate into contracts
awarded and further delays arose in rural areas as a result of the foot and
mouth epidemic. However, I am pleased to say that more recent trading has
shown signs of improved activity levels and we remain confident of the
prospects for this business for the year as a whole.

As previously announced, in October we acquired the assets and goodwill of the
shoring business of Mechplant Ltd, a part of the Shepherd Building Group, for
a consideration of £3.1m. This activity has now been integrated within
Groundforce and the combined business, trading as Groundforce Mechplant, has
got off to a good start. This acquisition achieves our strategic objective of
market leadership in this specialist field and will make a positive
contribution in the current financial year.

Airpac

A slow start in the offshore oil and gas sector combined with continuing
competition in our traditional onshore markets resulted in a weak first half
for Airpac.

More recently, we have secured significant domestic and overseas contracts
which will underpin the performance in the second half.

Safeforce

Last year's re-branding of our safety equipment rental business has given
Safeforce a solid basis for growth in this rapidly expanding market. We are
now seeing the fruits of the prior year's investment and look forward to a
strong performance for the year as a whole.

Safeforce has recently launched UK Training, a national safety training
business which we believe will provide valuable additional revenue
opportunities in the future.

HIRE STATION

  * Turnover £16.2m (2000: £12.7m)
  * Operating Profit £1.4m (2000: £1.2m)
  * Investment in rental fleet £2.9m (2000: £3.8m)

Since the beginning of the year, our tool hire activities have been operating
under the single national identity of Hire Station. Building on the
pre-existing strong regional identities of our tool hire network, Hire Station
has been well received by customers and staff alike, as it develops a national
infrastructure.

Hire Station One Call, our premium service national hire desk, has continued
to grow strongly, winning customers over to its simplified ordering procedure
and value added services.

Seven new branches have been added during the period, including the further
expansion of our specialist Lifting Point service. In August we acquired the
assets of a single branch tool hire business in Cardiff, giving us our first
outlet in Wales.

TORRENT TRACKSIDE

  * Turnover £3.6m (2000: £2.6m)
  * Operating Profit £0.7m (2000: £0.4m)
  * Investment in rental fleet £0.6m (2000: £0.4m)

Investment over the last two years in quality systems, training and expansion
of the rental fleet offering have provided a platform from which Torrent has
produced a very strong performance in the first half of the year.

Despite the recent uncertainty over the future structure and ownership within
the rail industry, we believe Torrent is very well placed to capitalise on the
significant workload associated with regeneration of the rail network
infrastructure over the coming years.



OUTLOOK

I believe that the actions we took last year, to exit from the low margin
general plant hire sector, have been justified as we begin to enjoy improved
returns within the Group.

Notwithstanding the background uncertainties about the state of consumer
confidence and the more specific uncertainties posed by the winter trading
period, your board believe the Group is well placed and look forward to a
satisfactory result for the year as a whole.





J.F.G. PILKINGTON

Chairman & Chief Executive


Vp plc

Consolidated profit and loss account

                        Notes   Six months to    Six months to          Year to
                                  30 Sep 2001      30 Sep 2000      31 Mar 2001
                                  (unaudited)      (unaudited)      
                                                      Restated         Restated
                                         £000             £000             £000
Turnover                              31,863           29,685           59,822
Trading profit                         8,272            6,564           13,996
Depreciation                          (4,918)          (5,036)          (9,691)
Operating profit before                3,354            1,528            4,305
goodwill amortisation
Amortisation of                         (129)            (100)            (229)
goodwill
Operating profit                       3,225            1,428            4,076
(Loss) / profit on                         -              (15)              30
termination of
businesses
Profit on ordinary                     3,225            1,413            4,106
activities before
interest
Net interest payable                    (369)            (506)          (1,047)
Profit on ordinary                     2,856              907            3,059
activities before
taxation
Taxation                                (771)            (394)            (827)
Profit on ordinary                     2,085              513            2,232
activities after
taxation
Dividends
- Interim                   5           (615)            (618)            (618)
- Final                                    -                -           (1,150)
Retained profit /                      1,470             (105)             464
(loss) for the period
Earnings per 5p             6           4.72p            1.15p            5.03p
ordinary share
Diluted earnings per 5p     6           4.70p            1.15p            5.03p
ordinary share
Earnings per 5p             6           5.02p            1.38p            5.55p
ordinary share before
goodwill amortisation
Dividend per 5p             5           1.40p            1.40p            4.05p
ordinary share

All the activities reflected in the profit and loss account are continuing as
defined by FRS 3.

Comparative figures have been restated to reflect the adoption of FRS 19 on
deferred tax.



Vp plc
Consolidated balance sheet

                             30 Sep 2001       31 Mar 2001       30 Sep 2000
                             (unaudited)                         (unaudited)
                                                 Restated          Restated
                             £000    £000      £000    £000      £000    £000
Fixed assets

Intangible assets -           4,808             4,889             4,675
goodwill
Tangible assets              50,961            51,183            53,420
Investments - own shares      1,121             1,130             1,168
                                     56,890            57,202            59,263
Current assets
Stocks                        2,233             2,277             2,169
Debtors                      16,809            15,191            17,667
Cash at bank and in hand      1,146             1,270                76
                                                                     
                             20,188            18,738            19,912
Creditors: amounts falling (21,393)          (25,337)          (25,237)
due within one year
Net current liabilities             (1,205)           (6,599)           (5,325)
Total assets less current            55,685            50,603            53,938
liabilities
Creditors: amounts falling          (6,076)           (2,344)           (6,589)
due after more than one
year
Provisions for liabilities          (4,285)           (4,399)           (4,358)
and charges
Net assets                           45,324            43,860            42,991

Capital and reserves
Called up share capital               2,309             2,309             2,309
Share premium account                16,192            16,192            16,192
Revaluation reserve                   1,520             1,520             1,646
Profit and loss account              25,276            23,812            22,817
Equity shareholders' funds           45,297            43,833            42,964
Equity minority interests
                                         27                27                27
                                     45,324            43,860            42,991



Vp plc

Consolidated cash flow statement


                                  Note
                                        Six months to   Six months to  Year to
                                           30 Sep 2001     30 Sep 2000
                                                                        31 Mar
                                         (unaudited)     (unaudited)       2001

                                                  £000            £000     £000
Cash flow from operating           7             7,306           2,717   10,856
activities
Net cash outflow from returns on                 (378)           (506)    (992)
investments and servicing of
finance
Tax received / (paid)                              194           (212)    (784)
Net cash (outflow) / inflow from               (3,971)               6    (718)
capital expenditure and financial
investment
Net cash outflow from                             (62)           (628)  (1,211)
acquisitions and disposals
Equity dividends paid                                -               -  (1,788)
Cash inflow before management of                 3,089           1,377    5,363
liquid resources and financing
Net outflow from financing                     (3,213)         (2,208)  (4,286)
(Decrease) / increase in cash in                 (124)           (831)    1,077
the period



Vp plc

Notes



 1. Basis of preparation


    The interim financial statements have been prepared on the basis of the
    accounting policies set out in the Group's financial statements as at 31
    March 2001, with the exception that the Group has amended its policies to
    take account of Financial Reporting Standard 19. In accordance with FRS 19
    deferred tax is now provided on the basis of the full potential liability,
    no discounting has been applied. A prior year adjustment has been made to
    restate the comparative profit and loss and balance sheet figures to
    reflect this change in policy. A tax rate of 27% has been used in the
    profit and loss account to reflect the estimated tax charge for the full
    year after taking into account estimated over provisions for prior years.

 2. Total recognised gains and losses

    All recognised gains and losses for the reporting periods are reflected in
    the consolidated profit and loss account.
 3. Trading performance of acquisitions

    The trading performance of acquisitions in the period is not material in
    Group terms and therefore has not been disclosed separately.
 4. Reconciliation of movements in consolidated shareholders' funds for the six
    months ended 30 September 2001

                                       Six months to   Year to     Six months to
                                         30 Sep 2001  31 Mar 2001    30 Sep 2000
                                          (unaudited)                (unaudited)
                                                         Restated      Restated

                                               £000         £000           £000
     Profit for the period                    2,085        2,232            513
     Dividends                                 (615)      (1,768)          (618)
                                              1,470          464           (105)
     Goodwill (write off) /                      (6)         300              -
     write back
     Net increase / (decrease)                1,464          764           (105)
     in shareholders funds
     Opening shareholders' funds             43,833       46,489         46,489
     Prior year adjustment                        -       (3,420)        (3,420)
     Closing shareholders' funds             45,297       43,833          42,964


 5. The Directors are proposing an interim dividend of 1.40 pence (2000: 1.40
    pence) per share payable on 7 January 2002 to shareholders on the register
    on 7 December 2001. The profit and loss account charge for dividends
    reflects the adjustments for the interim and final dividends waived by the
    Vibroplant Employee Trust in relation to the shares it holds for the
    Group's share option schemes.
 6. Earnings per share have been calculated on 44,144,981 shares (2000:
    44,528,919) being the weighted average number of shares in issue during
    the year. Diluted earnings per share have been calculated on 44,322,639
    shares (2000: 44,554,871).


 7. Reconciliation of operating profit to net cash inflow from operating
    activities.
                                       Six months to      Six months to  Year to
                                        30 Sep 2001        30 Sep 2000    31 Mar
                                                                           2001
                                          (unaudited)        (unaudited)        
                                             £000               £000     £000
    Operating profit                        3,225              1,428    4,076
    Exceptional business termination            -               (553)    (939)
    costs
    Depreciation                            4,918              5,036    9,691
    Amortisation of goodwill                  129                100      229
    Profit on sale of tangible fixed         (752)              (945)  (1,785)
    assets
    Decrease / (increase) in stocks            44                 29      (71)
    (Increase) / decrease in debtors       (1,906)              (802)   1,827
    Increase / (decrease) in                1,648             (1,576)  (2,172)
    creditors
    Net cash inflow from operating          7,306              2,717   10,856
    activities




 8. Analysis of net debt (unaudited)

                        As at   Cash flow   Acquisitions      Other      As at
                        1 Apr                               non-cash    30 Sep
                           2001                             changes        2001

                           £000     £000             £000         £000     £000
Cash at bank and in       1,270    (124)                -            -    1,146
hand
Medium term loan        (6,513)    1,060                -            -  (5,453)
Loan notes              (3,113)       25                -           46  (3,042)
Finance leases and                 2,128                -        (140)  (2,488)
hire purchase           (4,476)
                       (12,832)    3,089                -         (94)  (9,837)



Other information

Comparative figures

The comparative figures for the financial year ended 31 March 2001 are not the
Group's statutory accounts for that financial year. Those accounts have been
reported on by the Group's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified and did not contain a
statement under Section 237(2) or (3) of the Companies Act 1985.

Independent review report by KPMG Audit Plc to Vp plc

Introduction

We have been instructed by the company to review the financial information set
out on pages 5 to 9 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where they are to be changed in the next annual accounts in which case
any changes, and the reasons for them, are to be disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4: Review of interim financial information issued by the Auditing
Practices Board for use in the United Kingdom. A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially
less in scope than an audit performed in accordance with Auditing Standards
and therefore provides a lower level of assurance than an audit. Accordingly
we do not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modification that
should be made to the financial information as presented for the six months
ended 30 September 2001.

KPMG Audit Plc

Chartered Accountants

Leeds

27 November 2001