REG - Vp PLC - Trading Update

VPAnnouncement

15/04/2025 07:02

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RNS Number : 9575E  Vp PLC  15 April 2025

 
Vp plc

('Vp', or the 'Group')

 
Trading Update
 

Specialist offering delivering a resilient performance in line with
expectations

 

Vp plc, the specialist equipment rental business, today announces a trading
update for the financial year ended 31 March 2025 ("FY25" or "the year").

The Group has recorded a resilient performance in FY25 and expects to report a
performance in line with market expectations* despite previously reported
challenges in certain end markets.

This performance reflects the strengths of both Vp's specialist,
solutions-based offering, as well as its exposure to a diverse range of end
markets.

The Group is making good progress in refreshing and centralising its operating
model, assisted by its digital roadmap. This is enabling Vp to simplify the
way it operates, which will in turn drive efficiency and improve cross
divisional working to enhance the customer experience.

Infrastructure continues to be Vp's largest end market. Conditions have
generally been supportive, and the Group remains optimistic about future
growth opportunities:

•      Activity levels in Water have been strong and are expected to
continue with the start of Ofwat's new Asset Management Period 8 (AMP8).

•      Significant opportunities in Transmission exist in the UK and
Germany, particularly in relation to the renewal and upgrade of grid
infrastructure to support renewable energy sources.

•      Activity levels in Network Rail's Control Period 7 (CP7) have
been slower than anticipated. However, Vp remains optimistic about prospects
within the rail sector and the launch of Vp Rail during FY25 positions the
Group well to take full advantage of opportunities as they arise.

Within Construction, market dynamics have remained mixed:

•      The Group continues to enjoy good market activity levels in
Specialist Construction particularly in London and the Republic of Ireland,
where prospects remain strong. Vp's recent acquisition, CPH in Ireland, is
integrating into the Group well and trading is in line with expectations.

•      Non-residential Construction activity levels remain subdued.
Despite actions taken in Brandon Hire Station, improvements to the division's
performance have been slower than anticipated. The Group continues to monitor
the division's performance closely and continues to execute against the
previously announced recovery plan.

In Vp's smaller end markets, Energy has been supportive with a good level of
project activity. Housebuilding has been stable albeit at lower levels than
expected, however, the Group remains encouraged by the UK Government's focus
on this area.

The Group has continued to invest in its rental fleet in support of its
strategy of building long term sustainable competitive advantage, capitalising
on opportunities when they arise and driving attractive returns for the
Group.  Vp's balance sheet remains strong with a net debt/ EBITDA gearing
ratio of c1.5x**.  Net debt, which reflects growth capex and the acquisition
of CPH in October 2024, is in line with market expectations.

Anna Bielby, Chief Executive of Vp, said: "I am pleased to report a strong
performance that continues to demonstrate the resilience of our specialist
businesses and end markets, reinforced by improvements made to the Group's
operating model. While we have seen challenges in some of our markets
alongside wider geo-political uncertainty, our clear strategy combined with
our strong balance sheet and investment commitments by the UK Government,
underpins our ability to continue generating long-term sustainable shareholder
returns."

 

 

- ENDS -

 

*Vp compiled analyst consensus for revenue of £371m, Profit before tax,
amortisation and impairment of goodwill, trade names and customer
relationships and exceptional items of £37m and pre-IFRS 16 net debt of
£141m.

**Gearing ratio calculated using management information and excluding the
impact of IFRS16.

 

 

For further information:

 Vp plc
 Anna Bielby, Chief Executive               Tel: +44 (0) 1423 533 400
 Keith Winstanley, Chief Financial Officer  www.vpplc.com (http://www.vpplc.com)

 

 Media enquiries:
 Sodali & Co
 Justin Griffiths / Nick Johnson / Amy Gibson  Tel:  +44 (0) 2039 840 163
                                               vp@client.sodali.com (http://www.buchanancomms.co.uk)

 

 

Notes to Editors

Vp plc is a specialist equipment rental business providing equipment, people,
services and support for specialist projects. It focuses on niche sectors
principally in the Infrastructure Construction, Housebuilding and Energy
markets in the UK and overseas. Businesses include: Groundforce, TPA, Torrent
Trackside, Brandon Hire Station, MEP, ESS, UK Forks, Airpac Rentals, CPH and
Tech Rentals.

 

Our approach to environmental and social impact is guided by our core values
and responsible business framework, for more information go to:
www.vpplc.com/esg-and-governance/.

 

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