15.06.2004

VP profits jump 19 percent : New MD appointed

VP plc, the plant hire company previously known as Vibroplant, has reported a strong set of results with revenues rising by almost 11 percent to £83.5 million. Operating profits rose by seven and a half percent, but profits on the sale of surplus property combined with lower interest charges provided a pre tax profit of £8.9 million an increase of 19 percent on 2003. profit After Tax rose by 17 percent to £6.3 million.

UKForks, the UK’s largest renter of telescopic handlers turned in a solid 15 percent increase in revenues to £12.4 million, with a fleet of around 1,000 units, this suggests high utilisation levels at typical market rates. Profit for UK forks remained static at £1.3 million in spite of the increased turnover. The division invested £2.5 million in new units, in the past 12 months, slowing from previous years levels.

The Hire station, tool hire business, which represents 44 percent of group revenues, had another poor year, revenues were static but restructuring charges resulted in a £400,000 loss compared to a 900,000 profitin 2003.

Ground force was the star performer with revenues rising by almost 60 percent a large part due to the acquisition of Trench shore last July. Profits almost doubled though to £5.3 million.

Torrent Track side which rents equipment for rail maintenance did not, as predicted, see a repeat of last years exceptional performance, revenues were flat while profits fell, but this is still a highly lucrative venture.

At the same time as Chief executive Jeremy Pilkington released the results he announced that Neil Stothard, group finance director will take over as Group managing director, while Pilkington will move to executive chairman. Mike Holt, currently with Rolls- Royce Group plc, will take over the finance directors role in July 2004

Referring to the results for 2004, Pilkinton said “Overall, the Group has delivered another very satisfactory performance with some excellent individual results. Hire Station has been a disappointment but we have taken robust steps which we believe will provide a sound platform for the future.

Our ambition remains to deliver sustainable profit growth whilst further improving return on capital employed and we believe that the constituent elements to achieve this are in place.

The Group’s strong balance sheet and low gearing enables us to take advantage of growth opportunities as they arise, as has been clearly demonstrated by the successful expansion within Groundforce this year”.