11.10.2022

Positive trading statement from Vp

UK rental group Vp - owner of telehandler rental company UK Forks, low level access company MEP and general rental business Brandon Hire - has issued a trading statement for the six months to the end of September - the first half if its fiscal year - in advance of its Interim results due to be published at the end of November.

The statement said: “The group is continuing to trade satisfactorily and has seen further growth in the first half of the new financial year.”

UK
“In the UK, housebuilding and infrastructure activity has been supportive throughout the period, whilst construction market conditions were stable. In infrastructure markets, the group has experienced good transmission demand and the AMP7 water programme has picked up during the last few months. Elsewhere in infrastructure, the recent strike actions on the UK rail network have partially impacted some planned works, and in HS2, demand has slowed as Phase 2 of the project has experienced delays. General construction was satisfactory, with repair and maintenance remaining positive and new build relatively quiet, although pleasingly general civil engineering activity is picking up. Housebuilding also provided positive demand in the first half of the financial year.”

International
“The International division has made good progress in the first half of the financial year with both constituent businesses, Airpac Rentals and TR group, delivering good growth on the prior year.
At the AGM, the chairman's statement highlighted the headwinds of cost inflation and supply chain disruption. Whilst both remain factors, the group has started to see some improvement in lead times in recent months.”

Outlook
“Whilst Vp remains alert to quality growth opportunities, we remain mindful of the current uncertainties in the wider economy, and we continue to carefully manage the group's costs and fleet expenditure. The group remains in excellent financial shape to invest into further growth as and when market conditions improve.”

Vertikal Comment
This looks like a positive yet cautious statement from Vp, which earlier this year changed its mind on selling a controlling interest in the business, having failed to find an acceptable buyer. See: Vp closes sale effort
The company is managed conservatively in terms of debt and borrowings and is well placed to take advantage of most outcomes that may arise from the current uncertain political/economic climate in the UK.