14.02.2010

Vp sees market stability

UK rental company Vp, owner of UK Forks, has issued a relatively positive interim statement at the end of its third quarter.

The company says that with house building picking up and other opportunities it expects to meet market expectations and deliver a very strong full year result.

The statement is brief, so here it is in full.

“Market conditions have remained stable, although the adverse weather in early January did exacerbate the seasonal winter slowdown for most, but not all, of our businesses. Demand, however has subsequently recovered to anticipated levels of activity. We expect to report full year results in line with market expectations.”

“General construction has remained challenging, and whilst we have seen some tentative recovery in demand from house builders, commercial construction remains very subdued, a feature we expect to continue. The regulated infrastructure sector has held up well, and although we anticipate good demand from transmission, and a potential improvement in rail, the end of the AMP4 water programme will lead to an expected hiatus before the AMP5 activity commences. The oil and gas exploration market is stable, with improving prospects in the medium term.”

“Investment in the business has continued in support of opportunities as they have arisen. We have continued to generate strong operational cash flow in line with our plan to further reduce net debt. Debt levels are well within the capacity of our committed facilities and their associated covenants, and the balance sheet remains robust.”

“The outlook for the current year remains unchanged. We anticipate relative overall stability, with some downward pressure in specific markets. However, our broad range of specialist rental activities and market diversity should continue to provide some resilience. We believe that the Group will deliver a very satisfactory result in the current financial year, given the challenging trading environment.”