REG - Vp PLC - Trading Update

VPAnnouncement

03/10/2024 07:15

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RNS Number : 7439G  Vp PLC  03 October 2024

 For release on 3 October 2024

 
Vp plc

('Vp', or the 'Group')

 

Trading Update

 

Diversified, specialist businesses offsetting challenging macro-economic
environment

 

Vp plc, the specialist equipment rental business, today provides a trading
update for the six months ended 30 September 2024.

 

Despite a backdrop of challenging macro-economic conditions in many of its end
markets, the Group's performance remains resilient, which is testament to its
specialist businesses and diversified revenue streams.

 

The Infrastructure market continues to be supportive with year on year growth
and strong demand in transmission, water and civil engineering. While there
has been a slower than anticipated rollout of projects following the beginning
of the new Network Rail Control Period, CP7, the Group remains positive around
its opportunities within the rail sector.

 

Non-residential Construction activity remains subdued. In Brandon Hire
Station, while progress continues to be made by the new management team,
planned improvements to the performance of the business have been slower than
anticipated. Growth in Construction redevelopment projects has been
encouraging, notwithstanding the tough credit environment and the impact of
recently announced administrations in the sector.

Despite continued short-term softness in Housebuilding, Vp is encouraged by
the UK Government's push for rapid progress in this area. Additionally, the
Energy market remains positive, with strong demand and a good level of project
activity.

The Group continues to focus on delivering its refreshed strategy which will
generate long-term sustainable returns for stakeholders. Good progress is
being made with its digital roadmap which will drive simplicity and
operational efficiency in its business model.

Acquisition of Charleville Hire and Platform Ltd ("CPH")

Today, in a separate statement, Vp announced the acquisition of a majority
interest in CPH, a highly specialist powered access business with a leading
position in the Republic of Ireland. The acquisition complements the Group's
differentiated, specialist customer offering, provides a platform for growth
and allows it to take advantage of opportunities that exist in the buoyant
Irish market.

 

Outlook

Underpinned by a robust balance sheet, the Group remains in a strong financial
position with an excellent track record of delivery. However, as a result of
current market headwinds in Construction and Housebuilding, alongside a slower
start to CP7, Vp now expects to report a profit* for the current financial
year of c.£37 million.

 

Anna Bielby, Chief Executive of Vp, said "Despite an uncertain and challenging
economic backdrop, we have delivered a resilient performance which is
testament to our specialist businesses and diversified revenue streams. We are
encouraged by initial steps taken by the new UK Government to reinvigorate its
industrial and housebuilding strategies. However, further clarity and action
in these areas is needed to boost confidence and drive investment and
activity."

 

- E N D S -

 

* Profit before tax, amortisation and impairment of goodwill, trade names and
customer relationships and exceptional items

 

The information contained within this announcement is deemed by Vp to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) no. 596/2014 (as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018). On the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.

 

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) 2071 006 451
                                                         vp@client.sodali.com

 

 

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 and Tech
Rentals.

 

For the year ended 31 March 2024, the Group recorded revenue of £368.7
million and profit* of £39.9 million. For more information go to
www.vpplc.com (http://www.vpplc.com) .

 

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/ (http://www.vpplc.com/esg-and-governance/) .

 

 

 

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