Trading Update

Vp PLC

03 October 2024

 

For release on 3 October 2024

 

Vp plc

('Vp', or the 'Group')

Trading Update

Diversified, specialist businesses offsetting challenging macro-economic environment

Vp plc, the specialist equipment rental business, today provides a trading update for the six months ended 30 September 2024.

Despite a backdrop of challenging macro-economic conditions in many of its end markets, the Group's performance remains resilient, which is testament to its specialist businesses and diversified revenue streams.

The Infrastructure market continues to be supportive with year on year growth and strong demand in transmission, water and civil engineering. While there has been a slower than anticipated rollout of projects following the beginning of the new Network Rail Control Period, CP7, the Group remains positive around its opportunities within the rail sector.

Non-residential Construction activity remains subdued. In Brandon Hire Station, while progress continues to be made by the new management team, planned improvements to the performance of the business have been slower than anticipated. Growth in Construction redevelopment projects has been encouraging, notwithstanding the tough credit environment and the impact of recently announced administrations in the sector.

Despite continued short-term softness in Housebuilding, Vp is encouraged by the UK Government's push for rapid progress in this area. Additionally, the Energy market remains positive, with strong demand and a good level of project activity.

The Group continues to focus on delivering its refreshed strategy which will generate long-term sustainable returns for stakeholders. Good progress is being made with its digital roadmap which will drive simplicity and operational efficiency in its business model.

Acquisition of Charleville Hire and Platform Ltd ("CPH")

Today, in a separate statement, Vp announced the acquisition of a majority interest in CPH, a highly specialist powered access business with a leading position in the Republic of Ireland. The acquisition complements the Group's differentiated, specialist customer offering, provides a platform for growth and allows it to take advantage of opportunities that exist in the buoyant Irish market.

Outlook

Underpinned by a robust balance sheet, the Group remains in a strong financial position with an excellent track record of delivery. However, as a result of current market headwinds in Construction and Housebuilding, alongside a slower start to CP7, Vp now expects to report a profit* for the current financial year of c.£37 million.

Anna Bielby, Chief Executive of Vp, said "Despite an uncertain and challenging economic backdrop, we have delivered a resilient performance which is testament to our specialist businesses and diversified revenue streams. We are encouraged by initial steps taken by the new UK Government to reinvigorate its industrial and housebuilding strategies. However, further clarity and action in these areas is needed to boost confidence and drive investment and activity."

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* Profit before tax, amortisation and impairment of goodwill, trade names and customer relationships and exceptional items

The information contained within this announcement is deemed by Vp to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018). On the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

For further information:

Vp plc
Anna Bielby, Chief Executive	Tel: [phone]
Keith Winstanley, Chief Financial Officer	www.vpplc.com

Media enquiries: Sodali & Co
Justin Griffiths/Nick Johnson/Amy Gibson	Tel: [phone]
	[e-mail]

Notes to Editors

Vp plc is a specialist equipment rental business providing equipment, people, services and support for specialist projects. It focuses on niche sectors principally in the Infrastructure, Construction, Housebuilding and Energy markets in the UK and overseas. Businesses include: Groundforce, TPA, Torrent Trackside, Brandon Hire Station, MEP, ESS, UK Forks, Airpac Rentals and Tech Rentals.

For the year ended 31 March 2024, the Group recorded revenue of £368.7 million and profit* of £39.9 million. For more information go to www.vpplc.com.

Our approach to environmental and social impact is guided by our core values and responsible business framework, for more information go to: www.vpplc.com/esg-and-governance/.

 

END