30.11.2010

Solid result from Vp

Vp, owner of UK Forks, one of the UK's largest telehandler rental companies and general rental company Hire Station, has reported a solid pick up in the first half of its financial year. The company has also acquired a 150 unit telehandler fleet from one of its customers, complete with a three year exclusive supply agreement.

Group revenues for the six months to the end of September were £71.1 million, almost exactly the same as for the first half in 2009. Pre tax profits however slipped almost seven percent to £8.2 million.

Discussing its UK Forks results the company said:

“After two very difficult trading years, it was pleasing to experience an increase in demand from the housing sector. Hire revenues have increased substantially and with the benefit of our reduced cost base and the supply constraints in the marketplace, this has had a very positive impact on profitability. The decrease in reported top line revenues reflects a significant reduction in the level of rental fleet disposals when compared with the same period last year. For the first time in nearly two years, as fleet physical utilisation levels have recovered to more optimal levels, the Group is once again reinvesting in fleet to meet contract opportunities.”

The group’s capital investment during the period increased from 7.6 to £9.7 million, while net debt fell from £48 to £40 million – one of the lowest gearings in the industry.

Chairman Jeremy Pilkington, added: “Despite the adverse conditions which have existed in some of our core markets, the Group has delivered very satisfactory profits and margins. These results reinforce our confidence in the quality of our business model, which has demonstrated once again its ability to mitigate the impact of individual sector weaknesses through the diversity of the Group's activities. The Group has delivered further significant debt reductions and our balance sheet is again stronger than at the same time last year. This financial strength will continue to be a great asset to the Group in its future development.”

“The group has experienced a period of general stability over the last six months and this has continued since the end of the half year. We believe any recovery in the economy will be slow and that there will be further challenges along the way. However, the Board remains confident of the group's ability to capitalise on opportunities as they arise."