05.06.2014

Solid result from Vp

Vp, the UK based rental group and owner of UK Forks has reported a strong set of results for 2013-14.

UK Forks, one of the leading telehandler rental companies increased revenues by 19 percent to £16.3 million, while operating profits increased by the same percentage to £2.5 million. Capital expenditure for the year was £7 million, compared to just £400,000 in the previous year. The company says that it has seen a substantial improvement in demand from both house builders and general construction.

Hire Station which rents tools, towers and low level powered access increased revenues by seven percent to £66.2 million, with operating profits of £4.8 million – 11 percent higher than last year. Capital expenditure was £13.4 million compare to 9.4 million the prior year.

The other business that relates to lifting is TPA, which rents ground protection mats and temporary roadways in the UK and Germany, which are widely used for cranes and larger platforms etc… Revenues improved six percent to £15.8 million while operating profits jumped almost 40 percent to £1.8 million.

The group as a whole achieved revenues of £183.1 million, 10 percent up on the year, while pre-tax profits also increased 10 percent to £18.9 million. Total capital expenditure was £38.2 million 70 percent higher than for 2012/13.

Chairman Jeremy Pilkington said: "It has been another highly successful year for the group with significant progress in revenue, profits, earnings per share and dividends. Economic indicators in the UK and mainland Europe now appear more positive than for some time and all businesses within the group are identifying significant opportunities for growth and investment. We believe that our established financial discipline combined with the active pursuit of growth opportunities will continue to deliver quality returns for shareholders. We look forward to the year ahead with confidence."

Vertikal Comment

Another set of excellent results from Vp which has been building the business on a steady basis throughout the slowdown, with a longer term focus than many others in the market. It is very well placed to take advantage of opportunities for further bolt on acquisitions and is clearly heading for annual revenues of £200 million – not that far behind two of the three larger competitors – HSS and A-Plant.