Trading Update

RNS Number : 1533B

Vp PLC

06 October 2020

 

Press Release

6 October 2020

Vp plc

('Vp' or the 'Group')

Trading Update

Vp plc, the equipment rental specialist, announces the following update on trading since the Annual General Meeting held on 23 July 2020.

Over recent months the Group has continued to focus on rebuilding business activity back to pre-Covid levels, whilst at the same time giving top priority to the health and wellbeing of our colleagues, customers and other stakeholders.

Group revenues have continued to improve, although the initial impact from the re-opening of existing sites has slowed and the business has become more reliant on new projects starting.  Group revenues are now running at circa 85% of pre-Covid levels.

In response to the downturn in trading, the Group initially mothballed about 120 locations but we are pleased to report that over 100 of those are once again fully operational and are responding to the growing demand from our customer base as they themselves have returned to work.  However, the re-alignment of capacity to better reflect current levels of demand has required us to merge or close 17 branches and regrettably make approximately 150 positions redundant across our various businesses, in the UK and internationally.  The costs of these branch closures and the redundancies will be recognised as an exceptional charge in the current financial year ending 31 March 2021.

The Group has continued to demonstrate excellent cash management and net debt has reduced further to £118.7 million at 30 September 2020, which compares with £159.7 million at 31 March 2020, an improvement of £41.0 million.  A sustained period of strong cost control, reduced capital expenditure and excellent working capital management has delivered this impressive net debt improvement.

Markets are generally stable and infrastructure work, in particular, should be supportive as the likes of the AMP7, HS2 and Hinkley Point programmes start to gain momentum.  We do however remain slightly cautious with regard to the short to medium term prospects as we await evidence of a recovery in confidence and the commencement of new projects.  In addition we also remain conscious of the fact that the Covid pandemic is yet to be fully under control.

The longer term outlook for the Group remains positive and we are proactively identifying organic growth opportunities, focused particularly within those of our businesses already achieving pre-Covid levels of trading.

We would also like to take this opportunity to thank all of our colleagues for the strenuous efforts that they have made over recent months under the most challenging and unusual circumstances.

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For further information:

Vp plc
Jeremy Pilkington, Chairman		Tel: [phone]
Neil Stothard, Chief Executive		www.vpplc.co.uk
Allison Bainbridge, Group Finance Director
Media enquiries:
Buchanan
Henry Harrison-Topham / Jamie Hooper / George Beale		Tel: [phone]
[e-mail]	www.buchanan.uk.com

Notes to Editors

Vp plc is a specialist rental business providing products and services to a diverse range of markets including infrastructure, construction, housebuilding and oil and gas, both in the UK and overseas.

The Group comprises a UK and an International division:

UK

Groundforce

Excavation support systems and specialist products for the water, civil engineering and construction industries primarily in the UK, but also in the Republic of Ireland and mainland Europe.

Brandon Hire Station

Tools and specialist products for industry, construction and home owners.

Torrent Trackside

Infrastructure equipment and services for the railway renewals and maintenance industry.

TPA

Portable roadway access solutions to the transmission, outdoor events, construction and utility sectors in the UK, the Republic of Ireland and mainland Europe.

UK Forks

Rough terrain material handling equipment for the housebuilding, general construction and industrial markets.

International

Airpac Bukom Oilfield Services

Equipment and service providers to the international oil and gas exploration and development markets.

TR Group

Specialist rental of test & measurement, communications and audio visual equipment in Australia, New Zealand and Malaysia.

Further information is available at www.vpplc.com/investors

 

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