Vp bounce back
UK based rental group Vp, owner of telehandler rental company UK Forks, spider lift specialist Higher Access, low level access company MEP and general rental business Brandon Hire, has issued a second half trading statement which says that revenues are within five percent of 2019 levels.
The statement says: “Vp's core markets of infrastructure, construction and housebuilding have experienced a positive trajectory over recent months and with the prospect of returning to greater economic normality the board is confident that the recovery will accelerate and become increasingly robust. Revenues recovered to 95 percent of pre-Covid levels during the period. In the year debt has reduced by 22 percent from £160 million at 1 April 2020 to £124 million at 31 March 2021.”
“Highlights in the period in the UK, include the securing of a long term preferred supply agreement with Balfour Beatty Rail. Elsewhere, new management at ESS has successfully completed its exit from the Netherlands and is currently supporting one of the largest industrial shutdowns in the UK at the Valero plant in South Wales. The group has also been increasingly busy supporting contractors on HS2 in both the enabling and construction phases and the previously announced long term contract with Network Rail has had a successful first year. The lockdown has also catalysed further innovation at Vp with growth in online tool hire rental for Brandon Hire Station progressing well.”
“The International businesses have experienced equally volatile trading conditions to the UK, but as we enter the new financial year those overseas territories are also recovering well as markets reopen.”
Chief executive Neil Stothard said: "As we have seen specific markets pick up, we have started to invest again in new equipment to meet demand as the latent capacity of the fleet has been drawn back into productive use. The timing of some of this investment has been accelerated due to hopefully short term supply chain challenges for certain products, relating to both Covid-19 and Brexit disruptions.”
"As we enter the new financial year, we are pleased to see revenues returning to 95 percent of pre-Covid levels and this despite some sectors (such as events and hospitality) remaining closed, infrastructure programmes (such as AMP7 and CP6) not yet fully up to speed and confidence in the general construction market improving but still not fully recovered to pre-Covid levels. Our financial position remains strong having further reduced debt during the period leaving a platform for growth. We look forward to reporting another market leading performance in the UK this year and view the next 12 months with increasing confidence."