Interim Results

Vp PLC
21 November 2002


        Date :              Embargoed until 7.00 a.m. Thursday 21 November 2002
        Contacts :          Jeremy Pilkington, Chairman & Chief Executive
                            Neil Stothard, Group Finance Director
        Tel :               01423 533405

                        Vp plc : Interim Results



Vp plc, the specialist equipment rental group, announces its interim results for
the six months ended 30 September 2002.


  • Turnover of £37.1m (2001 : £31.9m)


  • Group profit before tax of £4.0m (2001 : £2.9m), an increase of 40%


  • Earnings per share of 6.34p (2001 : 4.72p)


  • Recommended interim dividend increased to 1.5p per share (2001 : 1.4p)


  • Net debt of £8.2m (31 March 2002 : £10.6m) representing gearing of 17%





Jeremy Pilkington, Chairman & Chief Executive, comments :

'The performance of the Group in the period has been very encouraging and
positions us well for further development.

Financially, the business remains in sound health with strong cash flow and low
gearing. We have both the financial and management resources to embrace
opportunities as they arise where the key criteria of price, compatibility with
our core businesses and potential for growth are satisfied.

Whilst the broader economic environment contains uncertainties and remains
challenging, the Group is well positioned to make further progress.'



CHAIRMAN'S STATEMENT

The performance of the Group in the six months to 30 September 2002 has been
very encouraging.

Turnover rose 16% to £37.1m (2001 : £31.9m) and operating profit before goodwill
amortisation improved 35% to £4.5m (2001 : £3.4m). Profit before taxation
increased to £4.0m (2001 : £2.9m) and earnings per share rose 34% to 6.34p (2001
: 4.72p).

Cash inflow from operating activities was £7.9m (2001 : £7.3m). Net debt at 30
September 2002 was £8.2m (31 March 2002 : £10.6m). This represents gearing of
17% on shareholders' funds of £48.6m.

The results for the first six months indicate that we have made satisfactory
progress towards our goals of improved return on capital employed, earnings
growth and market share gain.

The markets within which we operate have been challenging in the period and this
makes the achievement of the result all the more impressive and a credit to the
employees of the Group businesses.

In recognition of the progress made by the Group, your Directors are pleased to
recommend payment of an increased interim dividend of 1.5p (2001 : 1.4p) per
share payable on 6 January 2003 to shareholders registered as at 6 December
2002.

SERVICES


  • Turnover £14.6m (2001 : £12.1m)


  • Operating profit £2.0m (2001 : £1.3m)


  • Investment in rental fleet £2.0m (2001 : £2.8m)



UK Forks

UK Forks experienced a satisfactory six months trading in line with management
expectations. The division achieved further successes within its targeted
customer base, particularly in the residential construction sector.

The securing of longer term commitments has been key to progress within UK
Forks, as has our proactive approach to the introduction of new models and
functionality in response to our customers increased awareness of site health
and safety issues.

Groundforce

After a quiet start to the financial year, Groundforce activity improved in the
second quarter, performing in line with the business budgets and ahead of prior
year. The release of a number of delayed AMP3 water related projects has
strengthened demand for our more specialist equipment. Several new product lines
have been introduced in the first half including a 250T hydraulic strut which
has already featured on three large prestigious excavations.

Overall performance at Groundforce has been assisted by the successful
development of the complementary Piletec business which offers the rental and
sale of piling hammers and pile breakers.

Airpac

The Offshore business performed well with activity in our core North Sea market
strong. A number of large contracts have been successfully completed in South
East Asia. The newly established base in Singapore is improving the mobilisation
efficiency of the fleet and provides facilities on which we can expand our
presence in this market.

Onshore, the markets have remained difficult and we have reduced excess fleet
capacity as and when opportunities have presented themselves.

Safeforce

The Safeforce business continues to develop well in safety equipment hire, sales
and asset management. The introduction of new products has helped us to grow our
customer base and increase average transaction values.

In October, post the end of the period under review, this business made two
acquisitions. The material acquisition was the purchase, for a cash
consideration of £1.28m, of the entire issued share capital of Stopper
Specialists Limited, the market leading provider of pipe stopper hire and sales
to the groundwork and construction market. Stoppers are a product line,
complementary to both the Groundforce and Safeforce customer base, that has been
offered by Safeforce for many years and this acquisition represents a
significant expansion of that activity. We also made a small acquisition of the
assets and live contracts of a laser and survey equipment hire business.

HIRE STATION


  • Turnover £17.2m (2001 : £16.2m)


  • Operating Profit £1.1m (2001 : £1.4m)


  • Investment in rental fleet £2.9m (2001 : £2.9m)



The new management team at Hire Station has been very active during the period,
launching a number of initiatives designed to improve sales volume and margin.
These include a comprehensive staff training programme to strengthen our core
skills to enable us to deliver a sharper service offering. Other changes include
the reorganisation of the business into three geographical regions from four
which has permitted the elimination of a regional head office. The full benefit
of these initiatives will not be felt in full until next fiscal.

Whilst profits in the period are down compared with the same period last year,
this is due in part to the abnormally poor trading month in June as the country
focused on the World Cup and Jubilee celebrations, together with the costs of
regional restructuring. Additionally, the development of greenfield openings in
Glasgow and Edinburgh, whilst significantly improving the Hire Station offering
in Scotland, has imposed the drag effect of start up costs on the profit in the
period.

Hire Station One Call, the central hire desk reservation system for tool hire,
has successfully launched a 'fast-track' warehouse facility in East London,
serving the demanding but busy London market. Plans are in place to extend this
offering in the second half of the year.

The acquisition of Plymouth Hire Centre in June improved our geographic coverage
in the South West and a further three Lifting Point locations were opened in the
period.

Hire Station will shortly be launching, on a national basis, a safety equipment
rental and sales service through selected outlets within the existing tool hire
branch network. Branded as Safeforce, this will add a retail dimension to our
existing Safeforce offering.

The market in general for tool hire remains relatively flat but we believe there
is considerable scope for further improvement in Hire Station's performance. We
remain confident that the tool hire market will be a rewarding one for the
Group.



TORRENT TRACKSIDE


  • Turnover £5.3m (2001 : £3.6m)


  • Operating Profit £1.4m (2001 : £0.7m)


  • Investment in rental fleet £1.2m (2001 : £0.6m)



Torrent continues to perform extremely well, building further on its leading
position as a provider of non-operator plant and lighting services to the rail
infrastructure and maintenance market.

Further progress has been secured in the first half as Torrent has continued to
capture market share and has enjoyed an unusually strong summer trading period.
The extended offering of asset management contracts and training to the rail
maintenance sector has also given Torrent further impetus. Prospects for this
market remain good.



OUTLOOK

The performance of the Group in the period has been very encouraging and
positions us well for further development.

Financially, the business remains in sound health with strong cash flow and low
gearing. We have both the financial and management resources to embrace
opportunities as they arise where the key criteria of price, compatibility with
our core businesses and potential for growth are satisfied.

Whilst the broader economic environment contains uncertainties and remains
challenging, the Group is well positioned to make further progress.





J.F.G. PILKINGTON

Chairman & Chief Executive





Vp plc

Consolidated profit and loss account
                                                    Notes         Six months to      Six months to   Year to 31 Mar 2002
                                                                    30 Sep 2002        30 Sep 2001
                                                                    (unaudited)        (unaudited)
                                                                           £000               £000                  £000

Turnover                                                                 37,098             31,863                66,847
Trading profit                                                            9,571              8,272                17,585
Depreciation                                                            (5,049)            (4,918)              (10,406)
Operating profit before goodwill amortisation                             4,522              3,354                 7,179
Amortisation of goodwill                                                  (156)              (129)                 (280)
Operating profit                                                          4,366              3,225                 6,899
Net interest payable                                                      (356)              (369)                 (727)
Profit on ordinary activities before taxation                             4,010              2,856                 6,172
Taxation                                                                (1,243)              (771)               (1,664)
Profit on ordinary activities after taxation                              2,767              2,085                 4,508
Dividends
- Interim                                             5                   (654)              (615)                 (615)
- Final                                                                       -                  -               (1,222)
Retained profit for the period                                            2,113              1,470                 2,671
Earnings per 5p ordinary share                        6                   6.34p              4.72p                10.23p
Diluted earnings per 5p ordinary share                6                   6.21p              4.70p                10.12p
Earnings per 5p ordinary share before goodwill        6                   6.70p              5.02p                10.87p
amortisation
Dividend per 5p ordinary share                        5                   1.50p              1.40p                 4.20p

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

Vp plc

Consolidated balance sheet
                                             30 Sep 2002                 31 Mar 2002                 30 Sep 2001
                                             (unaudited)                                             (unaudited)
                                         £000          £000          £000          £000          £000          £000
Fixed assets
Intangible assets - goodwill                 5,139                       5,388                       4,808
Tangible assets                             50,763                      51,024                      50,961
Investments - own shares                     1,495                       1,521                       1,121
                                                          57,397                      57,933                      56,890
Current assets
Stocks                                       2,415                       2,293                       2,233
Debtors                                     18,939                      16,792                      16,809
Cash at bank and in hand                     1,813                       1,050                       1,146
                                            23,167                      20,135                      20,188
Creditors: amounts falling due            (19,268)                    (18,569)                    (21,393)
within one year
Net current assets / (liabilities)                         3,899                       1,566                     (1,205)
Total assets less current                                 61,296                      59,499                      55,685
liabilities
Creditors: amounts falling due after                     (8,508)                     (8,704)                     (6,076)
more than one year
Provisions for liabilities and                           (4,150)                     (4,270)                     (4,285)
charges
Net assets                                                48,638                      46,525                      45,324

Capital and reserves
Called up share capital                                    2,309                       2,309                       2,309
Share premium account                                     16,192                      16,192                      16,192
Revaluation reserve                                        1,230                       1,230                       1,520
Profit and loss account                                   28,880                      26,767                      25,276
Equity shareholders' funds                                48,611                      46,498                      45,297
Equity minority interests                                     27                          27                          27
                                                          48,638                      46,525                      45,324


Vp plc

Consolidated cash flow statement
                                                      Note         Six months to      Six months to            Year to 
                                                                     30 Sep 2002        30 Sep 2001         31 Mar 2002
                                                                     (unaudited)        (unaudited)
                                                                            £000               £000                £000

Cash flow from operating activities                     7                  7,932              7,306              15,087

Net cash outflow from returns on investments and                           (352)              (378)               (653)
servicing of finance

Tax (paid) / received                                                      (695)                194             (1,062)

Net cash outflow from capital expenditure and                            (4,379)            (3,971)             (5,661)
financial investment

Net cash outflow from acquisitions and disposals                           (158)               (62)             (3,440)

Equity dividends paid                                                          -                  -             (1,785)

Cash inflow before management of liquid resources                          2,348              3,089               2,486
and financing

Net outflow from financing                                               (1,585)            (3,213)             (2,706)

Increase / (decrease) in cash in the period                                  763              (124)               (220)


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 2002.

   A tax rate of 31% has been used in the profit and loss account to reflect the estimated tax charge for the full year.

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 2002

                                                                     Six months to           Year to    Six months to
                                                                       30 Sep 2002       31 Mar 2002      30 Sep 2001
                                                                       (unaudited)                        (unaudited)
                                                                              £000              £000             £000

               Profit for the period                                         2,767             4,508            2,085
               Dividends                                                     (654)           (1,837)            (615)
                                                                             2,113             2,671            1,470
               Goodwill write off                                                -               (6)              (6)
               Net increase in shareholders' funds                           2,113             2,665            1,464
               Opening shareholders' funds                                  46,498            43,833           43,833
               Closing shareholders' funds                                  48,611            46,498           45,297

5. The Directors are proposing an interim dividend of 1.50 pence (2001: 1.40 pence) per share payable on 6 January 2003 
   to shareholders on the register on 6 December 2002. 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 43,625,536 shares (2001: 44,144,981) being the weighted average number of
   shares in issue during the year. Diluted earnings per share have been calculated on 44,548,251 shares (2001:
   44,322,639).

7. Reconciliation of operating profit to net cash inflow from operating activities.

                                                      Six months to  Six months to        Year to
                                                        30 Sep 2002    30 Sep 2001    31 Mar 2002
                                                        (unaudited)    (unaudited)
                                                               £000           £000           £000

           Operating profit                                   4,366          3,225          6,899
           Depreciation                                       5,049          4,918         10,406
           Amortisation of goodwill                             156            129            280
           Profit on sale of tangible fixed assets            (665)          (752)        (2,163)
           (Increase) / decrease in stocks                    (117)             44             65
           Increase in debtors                              (2,147)        (1,906)        (1,889)
           Increase in creditors                              1,290          1,648          1,489
           Net cash inflow from operating activities          7,932          7,306         15,087

8. Analysis of net debt (unaudited)
                                                 As at  Cash flow      Acquisitions         Other        As at
                                            1 Apr 2002                                   non-cash  30 Sep 2002
                                                                                          changes
                                                  £000       £000              £000          £000         £000

   Cash at bank and in hand                      1,050        763                 -             -        1,813
   Medium term loan                            (8,387)         65                 -             -      (8,322)
   Loan notes                                  (1,944)      1,024                 -            51        (869)
   Finance leases and hire purchase            (1,281)        496                 -             -        (785)
                                              (10,562)      2,348                 -            51      (8,163)


Other information

Comparative figures

The comparative figures for the financial year ended 31 March 2002 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 2002.


KPMG Audit Plc
Chartered Accountants
Leeds
21 November 2002


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