Trading and COVID-19 Update

RNS Number : 4648H

Vp PLC

25 March 2020

 

Press Release

25 March 2020

Vp plc

( ' Vp ' or the ' Group ' )

Trading and COVID-19 Update

Vp plc, the equipment rental specialist, announces the following update on trading in the period since the interim results were issued on 4 December 2019 together with a COVID-19 update.

The Group as a whole has traded satisfactorily since the interim results.

In the UK, we experienced a reduction in construction industry related demand in December 2019 ahead of the general election and this continued into the final quarter of our financial year.  The infrastructure and house building sectors by contrast held up well.  Trading levels in our international division remained satisfactory without any material changes in market demand.

We, like the rest of the business community, are currently fully engaged in responding to the challenges posed by the global COVID-19 pandemic.  The health and well-being of our colleagues, our customers and our suppliers is our absolute priority and in this regard we continue to follow the latest Government guidelines.

To date the impact on most of our UK businesses has been relatively limited but revenues have reduced in the latter part of March 2020 and we expect this trend to continue.  We have also seen some of our international markets impacted by stringent government action limiting activity to all but essential business.  Consequently, whilst we anticipate a satisfactory full year result for the Group, this will be marginally behind current market expectations.

The Group has total committed facilities of £200 million plus an overdraft facility of £7.5 million.  The facilities include a new £65 million loan note finalised in January 2020 which matures in January 2027.  This new private placement includes an additional uncommitted US$39.6 million shelf facility.  Net debt at 31 March 2020 is anticipated to be c. £165 million leaving substantial headroom in our facilities.

Historically, Vp has from time to time experienced significant market challenges and we are already well underway with an appropriate business response to mitigate, as much as possible, the financial as well as human impact of the current situation.  The Group is inherently strong in generating cash and also has the ability to quickly and significantly reduce capital expenditure.

All of our businesses wherever they are based, are fully focused on a balanced and appropriate response to the rapidly evolving COVID-19 situation.  Whilst the immediate term challenges maybe significant, we are confident that we have the strength and experience of management, the strength of balance sheet and the strength of business model to emerge from this global crisis and secure the longer term future.

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For further information:

Vp plc
Jeremy Pilkington, Chairman		Tel: [phone]
Neil Stothard, Chief Executive		www.vpplc.com
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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