11.02.2026

Vp trading statement

UK rental group Vp - owner of UK Forks, MEP and Brandon Hire Station has issued a downbeat trading update for the 10 months to the end of January.

The main point it makes is that the fourth quarter has got off to a slow start, while reducing expectations for its full year profits.

The statement says:

“The board remains confident that the group, aided by its robust balance sheet and transformation of Brandon Hire Station, underpinned by a focused strategy targeted at core sectors, is well positioned to take advantage of future market opportunities. However, current market headwinds, particularly in construction and water, have resulted in a disappointingly muted January 'return to work' and a correspondingly slow fourth quarter ramp-up in activity volumes. Therefore, Vp now expects to report a profit for the current financial year within the range of £26-29 million.”
The original profit forecast was £37.3 million, compared to £36.7 million last year

“Across the sectors in which we operate, we continue to see growth and strong demand in energy transmission, whilst rail activity remains steady yet subdued. We remain positive about prospects in water and confident in our ability to take advantage of the significant increase in expenditure to come in AMP8*. However, while we have seen an uptick in design and planning work, we now expect to see meaningful increases in water revenues in 2027 rather than the current financial year. General construction remains subdued, with follow-on implications for activity levels across several Vp businesses.”

Note: Vp's Financial year 2027 = April 2026 to end of March 2027 - i.e 2026/2027

*Asset Management Period 8 is the water industry regulatory framework, which runs from April 2025 to 2030 and sets out the financial and operational expectations for water companies across England and Wales.

“In the group's smaller end markets, performance in housebuilding has benefited from operating model changes made in the last financial year, but overall activity levels remain subdued. Energy continues to be impacted by macroeconomic factors, with increased project activity expected in 2027.”

“Against this backdrop, Vp continues to deliver on its strategy, including the continued implementation of our digital roadmap alongside further harmonisation of systems and business processes, all of which will drive further opportunities for the group.”

“At Brandon Hire Station, good progress has been made delivering the transformational activities announced in November, which will result in a smaller, more focused and profitable business. These actions include a reduction in the branch footprint from over 100 to 41 and a headcount reduction in the region of 400. We remain on track to materially complete the transformation programme at Brandon by 31 March.”