26.11.2013

UK Forks surges ahead

UK telehandler rental company UK Forks has reported a strong first half in terms of profits and revenues, as has parent company Vp.

Six month revenues at UK Forks were up 20 percent on last year at £8.4 million, while operating profits surged almost 60 percent to £1.5 million. The company said that its business has experienced strong and sustained demand, particularly from residential construction and that it has made further investments in its fleet in response to high levels of utilisation.

It also says that while the market remains competitive, it sees further opportunities for growth especially in the residential building market.

Owner Vp, which also includes general rental company Hire Station and ground cover specialists TPA, saw first half revenues increase almost nine percent to £91.3 million, while pre-tax profits were up 12 percent to £12.3 million.

Chairman Jeremy Pilkington said: “I am very pleased to report another set of excellent results. Although uncertainties and challenges remain, we have seen a notable improvement in sentiment in certain key market sectors in the UK, particularly within residential and infrastructure investment. This has contributed to the significantly improved performances at Groundforce, UK Forks and Hire Station.”

“The scale of opportunities is reflected in the capital investment in rental fleet which was over 46 percent higher than the prior year at £18.3 million. We also completed the acquisition of Mr Cropper, the UK's leading pile cropping rental company, in September 2013 for a consideration of £4.6 million. Strong operating cash flow absorbed this investment whilst holding period end net borrowings to £56 million (2012: £50 million).”