30.11.2021

Strong recovery for Vp

UK based equipment 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 published its half year results to the end of September.

Total revenues increased almost 24 percent to £176.1 million, thanks to a rebound in the UK market coupled with stability in its overseas operations. This time last year the company posted a pre-tax loss of £6 million, which has been converted into an £18.6 million profit this year. Although last year’s numbers did include £13 million of write downs and exceptional costs, without 'exceptionals' pre-tax profit would still have more than doubled, from £8.6 to £20.2 million.

Net debt increased 11 percent to £131.7 million, partly due to the company more than doubling its capital expenditure to £31.7 million.

Chairman Jeremy Pilkington said: "I am pleased to report an excellent set of results for the period, reflecting a strong and continuing recovery in all of our businesses and delivery of market leading profit margins. Once again Vp has demonstrated the resilience of our distinctive business model and the inherent strength of our businesses.”

"Very encouragingly, some of our businesses are already trading in line or ahead of expectations. Where this is not the case, it is generally down to factors such as the longer term cyclical nature of some of our infrastructure markets and localised supply chain constraints which are impacting elements of the construction sector. We expect these markets will recover and this remains an opportunity for further growth.”

"In the light of these strong results and our confidence in the future prospects of the group, the board is declaring an interim dividend of 10.5 pence per share, reinstating our progressive dividend policy. The combination of our financial strength, unique market positions and exceptional team of people will continue to deliver strong results for all stakeholders, and we look to the future with much optimism."

Vertikal Comment

This is an excellent result from Vp, which has quietly continued to add to its business through greenfield expansion and small acquisitions, earlier this month it acquired M&S Hire. The company still has much upside potential in a relatively diverse set of industries from rail infrastructure to house building, all of which have a positive outlook in the UK.