07.06.2007

Strong second half for Vp

VP the telehandler to tool hire company saw revenues rise by 22 percent to £122 million in the fiscal year to the end of March 2007. Operating profits jumped by 44 percent to £16.5 million, while pretax profits rose by 36 percent to £14.5 million.

Jeremy Pilkington, VP chairman, said:
“The record result we are reporting reflects the underlying strength of the markets served by the Group and the success of our strategy in translating opportunities into profitable growth”.

“The outlook remains positive and we are confident that the Group can deliver sustainable growth over the medium term.”

Looking at the two businesses that fall within the areas we cover – Telehandlers and Tool rental which includes some access equipment, lifting gear and safety equipment and training.

UK Forks

UK forks the telehandler rental business, saw revenues slip by 2.5 percent to £13.9 million as activity, particularly in South East England, softened in the first nine months of the year, however a strong fourth quarter (first three months of 2007) lifted revenues closer to last years high levels.

The unbalanced activity levels and volatility caused by consolidation in the housebuilding sector eroded margins, with operating profits slumping by 33 percent to £1.4 million.

However the company stepped up its investment in new telehandlers by 10 percent to £3.4 million largely on replacement and fleet balancing purchases.

Fleet size remained static at around 1,200 machines with increased demand for telehandlers at both ends of the product size spectrum. In construction, tighter access within sites created higher demand for smaller machines up to six metres and for larger 360 degree telehandlers of up to 25 metres.

In housebuild, an increased popularity of apartments, now representing nearly 50 percent of housing starts in the UK in 2006, meant that 17 metre rigid frame telehandlers saw increased demand.


Hire Station

The Tool and general rental business saw revenues rise seven percent to almost £45 million, mostly from organic growth. Operating profits more than doubled to £3.1 million while capital expenditure was ratcheted up by 15 percent to £8.4 million.

Hire Stations specialist lifting business, Lifting Point, continued to grow with the company introducing satellite-stocking operations in all of the tool hire branches. This has apparently boosted revenues in this area by 20 percent.

ESS Safeforce the specialist safety rental business within Hire Station that includes training and sales of safety items, put in a strong performance in its first full