01.12.2005

VP reports strong first half

Vp, parent of telehandler rental company UK forks, (Vibroplant) has reported first half revenues up four percent to £47.4 million. Pre tax profits jumped 19 percent to £5.9 million, prior to a £400,000 integration charge for the Pivotal acquisition.

The three recent acquisitions had no impact on the first half, which ended September 30th.

UK Forks had an excellent first half with revenues up 17 percent to £7.5 million, profits rose to £1.3million (2004: £0.8m) The business benefited from house building and general construction sectors and it has a strong order book for the second half. However the company said that the second half of the year is unlikely to be as strong as the first due to normal seasonal slow down.

Hire station has also finally returned to profitablility after a period of losses. The division reported revenues up 15 percent to £20 million with a profit of £900,000 compared to a £300,000 loss last year.

Net debt doubled due to its acquisition splurge and heavier capital expenditure on new equipment, but is still only £5.7 million, giving a gearing of 10%. Although in the second half, the company has agreed a five year, £45 million revolving line of credit to fund its acquisitions.

Chairman Jeremy Pilkington, said “Vp has made a strong start to the new financial year and created a platform which we believe will deliver a satisfactory outcome for the year as a whole. In addition, we are very pleased to have secured three important acquisitions and look forward to their contribution to future performance.”