REG - Vp PLC - Final Results
11/06/2025 07:00
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RNS Number : 2849M Vp PLC 11 June 2025
For immediate release 11 June 2025
Vp plc
('Vp', the 'Group' or the 'Company')
Final Results
Resilient and in-line performance delivered alongside progression of refreshed
operating model
Vp plc, the equipment rental specialist, announces its audited Final Results
for the year ended 31 March 2025
Financial highlights
31 March 2025 31 March 2024 % change
Revenue (£m) 380.0 368.7 3%
Adjusted Profit* (£m) 36.7 39.9 (8)%
Return on Average Capital Employed* 14.2% 14.5% (0.3)pp
Adjusted basic EPS* (pence per share) 67.3 74.8 (10)%
Proposed final dividend (pence per share) 28.0 27.5 2%
Proposed dividend for the year (pence per share) 39.5 39.0 1%
Adjusted EBITDA* (£m) 90.6 91.2 (1)%
Net debt excluding lease liabilities* (£m) 138.5 125.2 11%
Capital investment in rental fleet (£m) 65.4 62.8 4%
Statutory profit before tax (£m) 21.7 2.8 >100%
Statutory earnings/(loss) per share (pence) 36.6 (13.4) >100%
* These measures are explained and reconciled in the Alternative Performance
Measures section below.
· Maintained sector-leading Return on Average Capital Employed
(ROACE*) of 14.2%
· Resilient performance and 3% revenue growth:
· Infrastructure market has been supportive, with strong demand from
water and transmission sectors partially offset by a slower start to Network
Rail's Control Period 7
· Specialist construction activities, particularly in London and the
Republic of Ireland, have been strong with performance in general construction
remaining subdued
· Energy markets have been supportive with a good level of project
activity
· Housebuilding has been stable with slightly lower activity levels
than anticipated
· Capex investment in rental fleet of £65 million, with a focus on
growth areas including Infrastructure and opportunities in Ireland and Germany
· Strong balance sheet with Net debt/EBITDA gearing*** of 1.5x,
comfortably within stated target of less than 2x
· Increase in proposed full year dividend to 39.5 pence per share,
maintaining a 30+ year uninterrupted dividend track record
Strategic update
· Acquisition of Charleville Hire and Platform Ltd ("CPH") in October
2024, increasing Vp's presence in the Republic of Ireland. CPH's performance
post-acquisition has been in line with expectations
· Launch of Vp Rail, providing an integrated rail sector solution for
customers drawing on the capabilities across the Group's divisions and
positioning Vp well to take advantage of sector opportunities
· Continued progress in refreshing and centralising the Group's
operating model to drive efficiency and improve cross divisional working to
enhance the customer experience
· Further investment in people, including strengthening of the senior
management team in Technology, Health & Safety and Sustainability, and
Procurement
· Brandon Hire Station recovery plan continues. Further decisive
actions will be taken in FY26, to be materially complete by the end of the
financial year
Current trading and outlook
· The Group continues to make progress with its strategy and remains
optimistic about future growth opportunities
· Despite continued economic uncertainty, Vp has made a solid start
to the financial year with strong momentum in Infrastructure and specialist
construction
· Vp expects performance for the new financial year to be in line
with current market expectations**
Anna Bielby, Chief Executive Officer of Vp, commented:
"We have delivered a resilient performance against a period of varied economic
and geopolitical headwinds, with our diverse and increasingly collaborative
specialist businesses driving sector leading returns. As a result of this
performance and our robust balance sheet, we are pleased to propose an
improved full year dividend - maintaining our 30+ year uninterrupted track
record and aligning with our commitment to deliver long-term sustainable
shareholder returns.
"During the year, we continued to make changes to our operating model to
capitalise on growth opportunities, including the centralisation of operations
and the launch of Vp Rail.
"Vp has entered the new financial year in a solid position, with strong early
momentum in Infrastructure and specialist construction. While we are
encouraged by the UK Government's revitalisation initiatives in Housebuilding,
Construction and Infrastructure projects, it is important that we get clarity
and certainty around these from the timely publication of its long-term
industrial strategy."
Analyst Briefing: 9.30am BST Today, Wednesday 11 June 2025
A live briefing for sell-side analysts will be hosted at the offices of Sodali
& Co, The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AB, at
9.30am BST today. After the briefing has finished, an audio webcast of the
presentation will be made available on the Group's Investor Relations website
here (https://www.vpplc.com/investors) .
Presentation with Equity Development: 10am BST, Friday 13 June 2025
Vp management will host an online presentation for retail investors via Equity
Development at 10am BST on Friday 13 June. The session is open to all existing
and potential shareholders, and registration is free. Questions can be
submitted during the presentation and will be addressed at the end. To
register for the event, please click here
(https://www.equitydevelopment.co.uk/news-and-events/vp-fullyear-investor-presentation-13june2025)
.
A recording will be available shortly after the event on Equity Development's
website here (https://www.equitydevelopment.co.uk/research/tag/vp) and Vp's
website here (https://www.vpplc.com/investors) .
- Ends -
** Vp compiled analyst consensus for 2025/2026: Revenue of £383.2m, Profit
before tax, amortisation and impairment of goodwill, trade names and customer
relationships and exceptional items of £37.3m and pre-IFRS 16 net debt of
£137.2m.
*** Gearing ratio calculated using management information and excluding the
impact of IFRS16.
For further information:
Vp plc
Anna Bielby, Chief Executive Officer Tel: +44 (0) 1423 533 400
Keith Winstanley, Chief Financial Officer www.vpplc.com (http://www.vpplc.com)
Media enquiries:
Justin Griffiths/Nick Johnson/Amy Gibson Tel: +44 (0) 2071 006 451
vp@client.sodali.com
(https://vpplc-my.sharepoint.com/personal/lmansf_vpplc_com/Documents/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 focusses 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, ESS, MEP Hire, CPH, UK Forks, Airpac Rentals
and Tech Rentals. Vp Rail is the Group's integrated rail solution providing
customers with direct access to all of Vp's rail specialisms through a central
team.
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/)
- ENDS -
CHIEF EXECUTIVE'S STATEMENT
I am pleased to report that Vp has delivered a resilient set of results in FY
2024/25, against a mixed market backdrop. Group adjusted profit* of £36.7
million represents a strong performance, underpinned by careful capital
allocation and a robust balance sheet. The Group's track record of strong
returns continues with a Return on Average Capital Employed of 14.2% (2024:
14.5%), slightly below the target level of 15%. Vp has also made good progress
in executing its strategy.
Market summary
The Group operates across four end markets: Infrastructure, Construction,
Housebuilding and Energy. These diverse end markets, alongside its specialist
focus, underpins Vp's strong, resilient business model. During FY 2024/25 the
Group has experienced differing conditions across these end markets, with
opportunity and growth, as well as challenges.
In Infrastructure, water and transmission have been supportive, with good
prospects for FY 2025/26 with the new AMP8 water cycle and a number of major
transmission projects across the UK and Europe. The new Rail Control Period
(CP7) began with lower activity levels, however, rail remains an important
part of the Group and Vp Rail was launched during the year to take full
advantage of market opportunity across Vp.
Elsewhere, the Group saw a mixed performance in Construction with specialist
construction performing well but continued challenges in general construction,
where non-residential activity levels remain subdued.
In Vp's smaller end markets, Energy has been supportive with a good level of
project activity, and Housebuilding has been stable albeit at lower levels
than expected.
Strategy
Delivering growth
The Group continues to progress its strategy of delivering profitable growth,
including through acquisition. Organically, as well as investing in capex,
opportunity exists for the Group's specialist divisions to work better
together to provide cohesive solutions for customers. In November, the Group
launched Vp Rail, a specialist end sector focussed solution giving customers
access to the full breadth of Vp's specialist rail offering. This is Vp's
first true end sector focussed offering, and represents a subtle shift in Vp's
operating model towards Group-wide propositions and solutions for our largest
customers. This approach is in response to customer feedback and ensures that
Vp is easy to do business with and that the customer is at the heart of the
Group's operations.
The Group's acquisition of CPH in October 2024 represented good strategic
progress and an opportunity, along with the Group's existing Groundforce
business, to capitalise on strong market conditions within the Republic of
Ireland. CPH, which is integrating into the Group well, operates in a niche
end market, providing specialist solutions to a specific customer base.
Operational excellence
The Group continues to review its operating model, to ensure that Vp is best
placed to execute its strategy and drive growth. Fundamental to Vp's operating
model is a delicate balance between agile customer-focussed divisions and
efficient central operations improving the customer experience and operating
in a cost-effective way.
During the year, Vp has made progress in centralising certain activities and
FY 2025/26 will see the launch of Vp Rental Solutions, a Group function which
will offer central account management for Vp's strategic customers alongside
centralised Group-wide rehire operations. For strategic customers, Vp Rental
Solutions will allow customers simple access to all of Vp's divisions,
alongside the Group's supply chain partners for extended product offerings. By
centralising these activities, Vp can leverage its supply chain, while
ensuring that the Group works with its customers to provide bespoke solutions
and meet complex project demands.
Vp has also introduced central procurement and property functions during FY
2024/25 to take advantage of scale and support better collaborative working
between the Group's specialist divisions.
People
People are at the heart of Vp and the Group works hard, supported by its HR
team, to be an employer of choice in order to attract and retain exceptional
people who can grow their careers and support the Group's customers.
Vp continues to invest in training, developing and rewarding its people. This
includes the Group's successful graduate and apprenticeship programmes, with
almost 100 placements across the Group. These important schemes support career
development and provide the opportunity to grow key roles in a labour market
with skills challenges and shortages.
The Group has also made further additions to the senior management team
including the leadership of technology, health and safety and sustainability,
procurement and property.
This year marked Vp's 70th anniversary and to celebrate this the Group
organised a number of initiatives, including anniversary awards, which had
peer-nominated categories across a number of areas including wellbeing and
ESG. The Group received a high number of colleague nominations, with a
fantastic awards ceremony held for the finalists in each category.
A key part of Vp's People Strategy is ensuring that our people, customers and
supply chain go home safely and healthily each day. Under new leadership, Vp's
Health and Safety Strategy has been refreshed with a focus on leadership
engagement, enabling people through education and training, and understanding
to effectively mitigate key risk areas.
Digital
The Group is making good progress with its digital roadmap, with a focus on
Vp's strategy of growth and operational excellence and making Vp easier to do
business with.
The Group expects investment in this area to be relatively modest and key
priorities include harmonising Vp's systems (so that the Group's specialist
divisions can collaborate better) the introduction of a CPQ tool (to reduce
quote wait times for customers, also reducing the administration required in
converting a quote to an invoice, minimising error rates, and improving the
customer experience), alongside continued data improvements and increased
cloud resilience.
ESG
Vp's approach to ESG continues to be pragmatic, taking into consideration its
stakeholders and the wider environment. Where possible, Vp engages with its
customers and suppliers to help them achieve their own ESG objectives. For
example, in the Group's TPA division, the use of temporary access panels is
often a cheaper solution for the customer and also carry a much lower carbon
footprint.
The Group has spent time in the last year developing its Social Strategy, to
be delivered in FY 2025/26, focussing on social mobility and social impact.
Operational review
Infrastructure
Infrastructure is the Group's largest end market and an area of significant
investment during the year. This end market generally has a greater degree of
complexity and solution based offerings and as a result, returns in this area
are typically strong.
Rail
In rail, the Group provides people, plant and equipment to support major
projects, renewals, maintenance and access. We work closely with Network
Rail, alongside key rail contractors.
The launch of Vp Rail in November provides customers with direct access to the
Group's rail capabilities across each of its specialist divisions, whilst
providing a single point of contact and centralised offer.
The first year of Network Rail's CP7 has been slower than anticipated, which
has led to lower activity levels. Outside of CP7, the Group has supported a
number of major projects, including ongoing work around HS2 and the
TransPennine Route Upgrade. Other projects include the rail construction
elements of major infrastructure works, providing key communication and
technology solutions, as well as site access and groundworks.
Water
In water, the Group provides people, plant and equipment to support a number
of areas across the industry including groundworks to support pipeline
construction, reservoir enhancements and treatment plant upgrades, alongside
site access, stopper and pressure testing and specialist survey and testing
equipment. Key customers include water companies and their main contractors.
Market conditions in FY 2024/25 have been supportive with a strong final year
to Ofwat's Asset Management Period (AMP) 7 and optimism remains for FY 2025/26
due to the increased size and scale of the AMP8 spend programme. The Group has
invested capital in this area to take advantage of market opportunity,
alongside working with customers to support product innovation.
Transmission
In transmission, the Group provides people, plant and equipment to support
site access, groundworks alongside survey, communications solutions and test
and measurement equipment. Key customers include major contractors.
The transmission sector across both the UK and Europe has been very strong
during FY 2024/25, with a particular positive impact on our divisions
providing temporary access solutions. Market opportunity remains strong in
relation to the renewal and upgrade of grid infrastructure to support
renewable energy sources in both the UK and Germany and we have invested
significantly in this area during FY 2024/25.
Outside of the provision of temporary roadway access, FY 2024/25 has seen a
good level of activity across our specialist divisions where a full-scale
transmission project often requires a number of bolt on provisions, including
onsite stores and technicians, training facilities and contingency stock. We
remain optimistic around the transmission opportunities in FY 2025/26.
Construction
Construction is the Group's second largest end market, slightly smaller than
Infrastructure. During the year, investment has been focussed on specialist
construction where a clearer market opportunity exists and where returns have
been strongest.
Specialist construction
Our divisions provide specialist assets (examples being highly technical
survey and scanning equipment, press fit tools and access equipment) to niche
end markets with a particular focus on site redevelopments, commercial fit
outs and 'clean rooms' in data centres, food and beverage and pharma.
During FY 2024/25, the Group has enjoyed good market activity levels, which
are expected to continue, particularly in London where we have supported a
number of major projects including providing CitiBank with a bespoke onsite
hire centre, allowing the customer to remain safe, efficient and productive at
all times.
Our recent acquisition, CPH operates in the growing pharma, renewables,
technology and food ingredient sectors in the Republic of Ireland, where
market opportunity is strong and capital investment will support high levels
of demand.
General construction
General construction principally relates to the Group's Brandon Hire Station
division where we provide small plant, tools and equipment to a broad customer
base. This division has the largest physical footprint of all Vp divisions
and most employees.
Brandon Hire Station also plays a broader role across the Group, providing
certain high-return general assets (non-mechanical plant such as scaffolding
tower and fence panels) to the Group's specialist divisions to ensure that we
can provide a comprehensive offering to support customers and complex
projects. During the year, a recovery plan has been underway to improve
performance. This plan has been centred on a more focussed offering to our
target customers across a smaller footprint. We have also made changes to
control and process with a focus on pricing.
Market conditions in general construction have remained challenging throughout
the year and, despite actions taken, Brandon Hire Station has underperformed.
The Group continues to monitor the division's performance closely. Further
decisive actions will be taken in FY26, to be materially complete by the end
of the financial year.
Housebuilding
The Group provides material handling solutions to national UK housebuilders.
During FY 2024/25, the UK housebuilding sector was subdued but stable. The
Group's UK Forks business, which operates principally in housebuilding, has
taken the opportunity to reduce its physical footprint in order to reduce its
cost base, while maintaining service levels to its national customers. This
change in operating model provides a greater level of agility to respond to
market demand, and we remain encouraged by the UK Government's continued focus
in this area.
Energy
Our divisions provide people, plant and equipment to support upstream and
downstream projects including infrastructure maintenance, major pipeline
projects and industrial shutdowns.
Our assets are typically air compressors and steam generators alongside safety
and communications equipment and associated training. Our major customers in
this area are generally large oilfield services and petroleum refinery
companies.
During FY 2024/25, the energy market was positive with strong demand and a
good level of project activity. The Group also benefited from a number of
industrial shutdown projects where our specialist divisions have had the
opportunity to work closely together to support significant and
highly-specialised customer projects.
Dividend
The Board is proposing a final dividend of 28.0 pence per share (2024: 27.5
pence per share). Together with the interim dividend of 11.5 pence per share,
this equates to a total dividend for the year of 39.5 pence per share (2024:
39.0 pence per share).
The proposed level of dividend is a balance between dividend growth and
dividend cover. Whilst acknowledging the temporary reduction in dividend
cover, the Board supports modest dividend growth as a reflection of its
confidence in the Group's future prospects. Dividend cover is expected to
return to two times in the medium term.
Board
After over ten years as a Non-Executive Director, Phil White will retire from
the Board in June 2025. The Group would like to thank Phil for the outstanding
contribution he has made to the management and direction of Vp over this time.
In February 2025, Vp appointed Richard Smith to the Board, an experienced FTSE
100 Chief Executive, formerly with Unite Group. Vp looks forward to working
closely with Richard to bring his skills and experience to bear on the future
growth of the Group.
Current trading and outlook
The Group continues to make progress with its strategy and remains optimistic
about future growth opportunities. Despite continued economic uncertainty, Vp
has made a solid start to the financial year with strong momentum in
Infrastructure and specialist construction. Vp expects performance for the new
financial year to be in line with current market expectations.
Anna Bielby
Chief Executive
10 June 2025
FINANCIAL REVIEW
Results
Group revenue increased by 3.1% to £380.0 million (2024: £368.7 million),
with adjusted profit* decreasing by 8.0% to £36.7 million (2024: £39.9
million). Statutory profit before tax increased from £2.8 million to £21.7
million.
The Return on Average Capital Employed* was 14.2% (2024: 14.5%).
Segmental performance
The Group's segmental performance has been restated to reflect the financial
information provided to the Board. The Group's UK and international segments
now reflect operational locations, after previously representing the location
of historic management teams.
Revenue generated by the Group's UK segment was £317.6 million (2024
restated: £309.3 million), while adjusted operating profit* decreased to
£37.4 million (2024 restated: £39.4 million) predominately due to
challenging conditions in the general construction market.
Revenue generated by the Group's International segment was £62.3 million
(2024 restated: £59.4 million), while adjusted operating profit* was broadly
flat at £9.6 million (2024 restated: £10.1 million), with the contribution
of CPH (see acquisitions below) being offset by performance outside of Europe.
Acquisitions
In October the Group acquired a majority interest in Charleville Hire and
Platform Ltd (CPH). The Group acquired 90% of the shares in CPH for an initial
cash consideration of €12.1 million with the remaining 10% to be purchased
over a three-year period from the acquisition date. Subject to business
performance against stretching EBITDA targets, a further maximum deferred and
earn-out payment of €21.7 million may be payable across the second and third
anniversaries of the deal.
As part of the accounting for the acquisition a gain on bargain purchase of
£1.1 million has been recognised, while future deferred and earn-out payments
have been treated as post combination remuneration costs (£1.8 million). Both
items, alongside acquisition-related costs (£1.0 million) have been
classified as exceptional items.
Exceptional items
The Group recorded net exceptional items of £10.9 million (2024: £5.8
million). These items have been reported separately due to their size, nature
or irregularity and in order to better understand the underlying performance
of the Group.
In addition to those items relating to the CPH acquisition, exceptional items
also include £5.4 million of impairment charges against property, plant and
equipment and right-of-use assets, as well as £3.8 million restructuring
costs.
Impairment charges against property, plant and equipment and right-of-use
assets, alongside the impairment of intangible assets (see below), have been
recognised against assets held in the Brandon Hire Station cash generating
unit (CGU), where challenges in the general construction sector continue to
impact performance. These non-cash impairments have been calculated by
comparing the carrying value of the CGU against its recoverable amount.
Restructuring costs mainly relate to branch closure costs in the Group's
Brandon Hire Station and UK Forks divisions.
Amortisation and impairment of intangible assets
Amortisation and impairment of goodwill, trade names and customer
relationships £4.1 million (2024: £31.2 million) includes £3.2 million of
amortisation (2024: £3.1 million) and £0.9 million of impairment charges
(2024: £28.1 million).
Earnings per share and dividends
Adjusted basic earnings per share* was 67.3 pence (2024: 74.8 pence) and 36.6
pence (2024: loss per share of 13.4 pence) on a statutory basis. The weighted
average number of shares in issue for the period was 39.5 million.
The Board is recommending a final dividend of 28.0 pence per share. If
approved, the full-year dividend would increase to 39.5 pence per share (2024:
39.0 pence per share) with dividend cover of 1.7 times (2024: 1.9 times) based
upon adjusted earnings per share.
Finance costs and funding
Net financial expense of £10.3 million (2024: £9.6 million) includes £6.7
million (2024: £6.4 million) of bank finance costs and £3.7 million (2024:
£3.3 million) of IFRS 16 lease interest.
The Group has £190.5 million debt capacity (2024: £190.5 million) comprising
£93.0 million private placements, a £90.0 million revolving credit facility
(RCF), and a £7.5 million net overdraft. The private placement agreements
have low fixed interest rates and will expire in January 2027 and November
2028. In November, the RCF was extended for a further year and will now mature
in November 2027.
The Board has evaluated the facilities and covenants on the basis of the FY
2025/26 long-term forecasts which have been prepared taking into account the
current economic climate, together with severe but plausible downside
scenarios. All scenarios retain adequate headroom against borrowing facilities
and fall within existing covenants.
This evaluation gives the Directors confidence that the Group has adequate
resources to continue in operation over the viability period.
Cash flows and net debt
The net cash generated from operating activities in the year was £80.7
million (2024: £89.6 million). The decrease of £8.9 million was primarily
due to a small working capital cash outflow following a relatively large
working capital cash inflow in the prior year.
Net debt, excluding the impact of IFRS 16 lease liabilities, increased to
£138.5 million (2024: £125.2 million) with the inflow from operating
activities offset by £41.6 million invested in the Group's rental fleet (net
of disposal proceeds), £9.9 million used in the acquisition of CPH, £8.3
million invested in other assets, £15.4 million of dividends paid to the
Group's shareholders, £18.0 million of lease principal payments and £4.6
million of income tax paid.
Pensions
The Group operates defined contribution benefit schemes under which
contributions are determined as a percentage of employees' earnings.
The Group also has two defined benefit pensions schemes, the Vp Pension Scheme
and a small section of the Railways Pension Scheme. In November the Trustees
of the Vp Pension Scheme entered into a buy-in contract to secure the majority
of the benefits provided by the scheme.
The two defined benefit pension schemes have a combined net surplus of £0.9
million (2024: £1.9 million net surplus).
Taxation
The tax charge of £7.3 million (2024: £8.1 million) was 33.5% of profit
before tax. The effective rate was higher than the standard rate predominately
due to the impact of expenses not allowable for tax purposes. The effective
tax rate on adjusted profit before tax was 28.1% (2024: 27.2%).
Keith Winstanley
Chief Financial Officer
10 June 2025
* These measures are explained and reconciled in the Alternative Performance
Measures section below.
Consolidated Income Statement
for the year ended 31 March 2025
Restated*
Note 2025 2024
£000 £000
Revenue 1 379,957 368,691
Cost of sales (287,839) (283,159)
Gross profit 92,118 85,532
Administrative expenses (65,416) (48,644)
Impairment losses on trade receivables (1,753) (3,743)
Impairment of intangible assets (884) (28,120)
Profit on disposal of property, plant and equipment 7,973 7,456
Operating profit 32,038 12,481
Net financial expense (10,318) (9,635)
Profit before tax, amortisation and impairment of goodwill, trade names and
customer relationships and exceptional items
36,672 39,861
Amortisation and impairment of goodwill, trade names and customer (4,062) (31,198)
relationships
Exceptional items (included within administrative expenses) 2 (10,890) (5,817)
Profit before tax 21,720 2,846
Income tax expense 5 (7,275) (8,137)
Profit/(loss) after tax 14,445 (5,291)
Pence Pence
Basic earnings / (loss) per share 3 36.6 (13.4)
Diluted earnings / (loss) per share 3 36.5 (13.4)
Dividend per 5p ordinary share interim paid and final proposed 6 39.5 39.0
*Due to a change in presentation, profit on disposal of property, plant and
equipment is now presented on the face of the Income Statement. Previously
such profits were presented within cost of sales. The comparatives have been
restated accordingly.
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2025
2025 2024
£000 £000
Profit / (loss) for the year 14,445 (5,291)
Other comprehensive expense:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension schemes (746) (391)
Tax on items taken to other comprehensive income 342 248
Items that will not be subsequently reclassified to profit or loss
Foreign exchange translation differences (1,886) (1,522)
Tax on items taken to other comprehensive income 247 -
Net investment hedge (22) -
Total other comprehensive expense (2,065) (1,665)
Total comprehensive income/(expense) for the year 12,380 (6,956)
Consolidated Statement of Changes in Equity
for the year ended 31 March 2025
2025 2024
£000 £000
Profit / (loss) for the year 14,445 (5,291)
Other comprehensive expense (2,065) (1,665)
Dividends to shareholders (15,394) (14,997)
Net movement relating to shares held by Vp Employee Trust (41) (706)
Share based payments expense 433 767
Tax movements to equity - (20)
Change in equity (2,622) (21,912)
Equity at start of year 153,020 174,932
Equity at end of year 150,398 153,020
Consolidated Balance Sheet
as at 31 March 2025
Restated*
Note 2025 2024
£000 £000
Non-current assets
Property, plant and equipment 271,058 256,944
Intangible assets 29,398 28,572
Right-of-use assets 57,832 58,645
Employee benefits 858 1,853
Total non-current assets 359,146 346,014
Current assets
Inventories 9,911 9,548
Trade and other receivables 71,473 74,753
UK Income tax receivable 2,019 3,582
Cash and cash equivalents 4 29,870 24,527
Total current assets 113,273 112,410
Total assets 472,419 458,424
Current liabilities
Lease liabilities 4 (17,609) (16,319)
Overseas income tax payable (2,275) (1,501)
Trade and other payables (63,622) (71,720)
Bank overdraft 4 (17,202) (18,466)
Total current liabilities (100,708) (108,006)
Non-current liabilities
Interest-bearing loans and borrowings 4 (151,165) (131,280)
Lease liabilities 4 (47,815) (45,642)
Other payables (2,608) (667)
Provisions (2,937) (3,160)
Deferred tax liabilities (16,788) (16,649)
Total non-current liabilities (221,313) (197,398)
Total liabilities (322,021) (305,404)
Net assets 150,398 153,020
Equity
Issued share capital 2,008 2,008
Capital redemption reserve 301 301
Share premium 16,192 16,192
Hedging reserve (22) -
Foreign currency translation reserve (3,926) (2,040)
Retained earnings 135,845 136,559
Total equity 150,398 153,020
*Bank overdraft has been presented gross of cash and cash equivalents and the
comparatives restated
Consolidated Statement of Cash Flows
for the year ended 31 March 2025
Note 2025 2024
£000 £000
Cash flow from operating activities
Profit before taxation 21,720 2,846
Adjustments for:
Share based payment charges expense 433 767
Depreciation of property, plant and equipment 46,464 44,138
Impairment of property, plant and equipment 1,174 -
Depreciation of right-of-use assets 18,396 16,488
Impairment of right-of-use assets 4,219 -
Impairment of intangible assets 884 28,120
Bargain purchase (1,085) -
Contingent remuneration 1,800 -
Amortisation of intangible assets 4,026 3,934
Release of arrangement fees 346 427
Net financial expense 10,318 9,635
Profit on disposal of property, plant and equipment (7,973) (7,456)
Operating cash flow before changes in working capital and provisions 100,722 98,899
Increase in inventories (363) (633)
Decrease in trade and other receivables 4,154 6,760
(Decrease)/increase in trade and other payables (8,559) 2,082
(Decrease)/increase in provisions (223) 1,548
Cash generated from operations 95,731 108,656
Interest paid (6,795) (6,521)
Interest element of lease liability payments (3,698) (3,315)
Interest received 117 58
Income taxes paid (4,618) (9,233)
Net cash generated from operating activities 80,737 89,645
Proceeds from sale of property, plant and equipment 23,745 25,273
Purchase of property, plant and equipment (72,869) (71,375)
Purchase of intangible assets (800) (963)
Acquisition of subsidiary (net of cash acquired) (9,945) -
Net cash used in investing activities (59,869) (47,065)
Cash flow from financing activities
Purchase of own shares by Employee Trust (41) (706)
Repayment of borrowings (38,000) (76,000)
Drawdown of borrowings 57,738 62,000
Arrangement fees (199) (655)
Principal payment of lease liabilities (17,985) (17,275)
Dividends paid (15,394) (14,997)
Net cash used in financing activities (13,881) (47,633)
Net increase /(decrease) in cash and cash equivalents 6,987 (5,053)
Effect of exchange rate fluctuations on cash held (380) (26)
Cash and cash equivalents net of overdrafts at the beginning of the year 6,061 11,140
Cash and cash equivalents net of overdrafts at the end of the year 4 12,668 6,061
NOTES
The final results have been prepared on the basis of the accounting policies
which are set out in Vp plc's annual report and accounts for the year ended 31
March 2025. The accounting policies applied are in line with those applied in
the annual financial statements for the year ended 31 March 2024 and conform
with UK-adopted International Accounting Standards ('UK-adopted IASs'). The
financial statements have also been prepared in accordance with international
accounting standards in conformity with the requirements of the Companies Act
2006.
Whilst the financial information included in this announcement has been
computed in accordance with UK-adopted IASs, this announcement does not itself
contain sufficient information to comply with UK-adopted IASs. The Company
expects to publish full financial statements in June 2025.
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 March 2025 or 2024. Statutory
accounts for 31 March 2024 have been delivered to the registrar of companies,
and those for 31 March 2025 will be delivered in due course. The auditor has
reported on those accounts; the reports were (i) unqualified, and (ii) did not
contain a statement under section 498 (2) or (3) of the Companies Act 2006 in
respect of the accounts for 31 March 2025.
The financial statements were approved by the Board of Directors on 10 June
2025.
Going Concern
The going concern basis has been adopted in preparation of the consolidated
financial statements. The Board has evaluated funding, facilities and
covenants on the basis of the budget for 2025/26 and has been extended to the
period September 2026 and performed sensitivity analysis on them.
The Group and Parent Company forecast positive cash inflows through a pipeline
of existing and new hire agreements and other services; the Group and Parent
Company also have sufficient finance facilities available. The assessment
included an analysis of the Group's and Parent Company's current financial
position, ability to trade, principal risks facing the Group, and the
effectiveness of its strategies to mitigate the impact of liquidity risks and
included a severe but plausible downside scenario. On the basis of these
procedures, the Board has a reasonable expectation that the Group and Parent
Company has adequate resources to continue in operational existence for at
least the next 12 months from the date of approval of these financial
statements. The financial statements do not include the adjustments that would
result if the Group and Parent Company were unable to continue as a going
concern.
1. Business Segments
Adjusted Operating Profit
Revenue
Restated Restated
2025 2024 2025 2024
£000 £000 £000 £000
UK 317,617 309,312 37,405 39,361
International 62,340 59,379 9,585 10,135
Total 379,957 368,691 46,990 49,496
The segmental analysis is different from that presented in the year ended 31
March 2024 annual financial statements. Previously the segments were based on
the historic management location. Following a reorganisation of the internal
reporting of financial information, the UK segments now contain all divisions
and sub-divisions which are primarily operating in the UK. The International
segment contains all divisions and sub-divisions which are primarily operating
outside the UK. Prior year balances have been restated into the new
segmentation.
Adjusted Operating profit is reconciled to profit before tax in the
Alternative Performance Measures section.
2. Exceptional Items
During the year, those items considered exceptional include:
2025 2024
£000 £000
Restructuring and reorganisations 3,807 5,817
Gain on bargain purchase (1,085) -
Contingent remuneration for post-combination services 1,800 -
Acquisition-related costs 975 -
Impairment of property, plant and equipment and right-of-use assets 5,393 -
Total Exceptional items 10,890 5,817
Current year restructuring and reorganisation costs include branch closure
costs of £3.5 million in the Group's Brandon Hire Station and UK Forks
divisions (2024: £4.2 million) and system and structural changes required to
enable transformation projects within the Group (£0.3 million). Branch
closure costs are deemed exceptional due to their size and nature. Branch
closure costs included redundancies, property exit costs and the write-off of
assets that can no longer be used. Prior year restructuring and reorganisation
costs also included costs relating to changes to the Group's Board and Senior
leadership team (£1.6 million). Costs relating to Board and leadership
changes were considered exceptional due to the size and irregularity.
Gain on bargain purchase of £1.1 million relates to the difference between
consideration and assets acquired associated with the acquisition of CPH. This
item is considered exceptional due to its irregularity.
Contingent remuneration for post-combination services, associated with the CPH
acquisition, are based on CPH business performance against future EBITDA
targets, and may be payable on the second and third anniversary of the 2
October 2024 acquisition. The charge in the year represents the directors'
best estimate of amount to be paid, pro-rated based on employment term
completed post combination. They are deemed exceptional due to their size
and irregularity. As the remuneration costs are to be accrued across the
periods of two and three years post acquisition, costs in relation to this are
expected to be incurred over the next three financial years, up to the year
ending 31 March 2028. These costs are considered exceptional due to their
irregularity.
Acquisition-related costs are costs incurred in the process of acquiring CPH.
These costs are considered exceptional due to their irregularity.
Impairment charges against non-current assets, including property, plant and
equipment of £1.2m and right-of-use assets of £4.2m, have been recognised
against assets held in the Brandon Hire Station cash generating unit (CGU),
where challenges in the general construction sector continue to impact
performance. These non-cash impairments have been calculated by comparing the
carrying value of the CGU against its recoverable amount and allocating the
impairment identified across certain non-current asset categories in
accordance with IAS 36.
The exceptional items above result in a reduction of £2.0 million (2024:
£1.5 million) in the tax charge.
3. Earnings Per Share
The calculation of basic profit per share of 36.59 pence (2024: loss of 13.41
pence) was based on the profit after tax of £14,445,000 (2024: loss of
£5,291,000) and a weighted average number of ordinary shares outstanding
during the year-ended 31 March 2025 of 39,482,000 (2024: 39,470,000),
calculated as follows:
Shares Shares
2025 2024
000s 000s
Issued ordinary shares 40,154 40,154
Effect of own shares held (672) (684)
Weighted average number of ordinary shares 39,482 39,470
The calculation of diluted earnings per share of 36.48 pence (2024: loss of
(13.41) pence) was based on profit after tax of £14,445,000 (2024: loss of
£5,291,000) and a weighted average number of ordinary shares outstanding
during the year-ended 31 March 2025 of 39,594,000 (2024: 39,683,000),
calculated as follows:
Shares Shares
2025 2024
000s 000s
Weighted average number of ordinary shares 39,482 39,470
Effect of own shares held 112 213
Weighted average number of ordinary shares (diluted) 39,594 39,683
The calculation of diluted earnings per share in the prior year does not
assume conversion, exercise or other issue of potential ordinary shares that
would have an antidilutive effect on earnings per share.
4. Analysis of Net Debt
As at 31 Mar 2024 Cash movements Non-cash movements As at 31 Mar 2025
£000 £000 £000 £000
Secured loans 132,000 19,700 38 151,738
Arrangement fees (720) (199) 346 (573)
Cash and cash equivalents (6,061) (6,987) 380 (12,668)
Net debt excluding lease liabilities 125,219 12,514 764 138,497
Lease liabilities 61,961 (21,683) 25,146 65,424
Net debt including lease liabilities 187,180 (9,169) 25,910 203,921
Year-end gearing (calculated as net debt excluding lease liabilities expressed
as a percentage of shareholders' funds) stands at 92% (2024: 81%).
As at 31 March 2025, the Group had £183.0 million (2024: £183.0 million) of
debt capacity comprising committed revolving credit facilities of £90.0
million and private placements of £93.0 million. In addition to the committed
facilities, the Group net overdraft facility at the year-end was £7.5 million
(2024: £7.5 million).
5. Taxation
The charge for taxation for the year represents an effective tax rate of 33.5%
(2024: 285.9%). The adjusted tax rate of 28.1% (2024: 27.2%) was slightly
higher than the UK corporation tax rate predominately due the impact of
expenses not deductible for tax purposes and overseas tax rates.
6. Dividend
The Board has proposed a final dividend of 28.0 pence per share to be paid on
6 August 2025 to shareholders on the register at 20 June 2025. Including the
interim dividend of 11.5 pence per share, this makes a total dividend for the
year of 39.5 pence per share (2024: 39.0 pence per share).
The ex-dividend date will be 19 June 2025 and the last day to elect to
participate in the dividend reinvestment plan will be 4 July 2025.
7. Principal risks and emerging risk areas
The Group has an established risk management framework which identifies,
assesses, and mitigates key risks facing the business. The principal risks and
uncertainties facing the Group are set out in detail on pages 52 to 55 of the
Annual Report and Accounts for the year ended 31 March 2024, a copy of which
is available on the Group's website.
With the exception of technology & IT resilience, the Board considers the
principal risks and uncertainties as at 31 March 2025 to be the same as those
described in the Report and Accounts for year ended 31 March 2025. The level
of technology & IT risk is considered to have increased given the growing
complexity of cybersecurity threat landscape, and the concurrent delivery of
multiple IT projects under our Digital Roadmap.
The Group continues to closely monitor risks to ensure our operational
resilience remains strong and has robust measures in place to identify and
manage potentially disruptive events should they arise.
8. Forward Looking Statements
The Chief Executive's Statement and Finance Review include statements that are
forward looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which may cause
the actual results, performance or achievements of the Group to be materially
different from any future results, performance or achievements expressed or
implied by such forward looking statements. Except as required by the Listing
Rules and applicable law, the Company undertakes no obligation to update,
review or change any forward looking statements to reflect events or
developments occurring after the date of this report.
9. Annual Report and Accounts
The Annual Report and Accounts for the year ended 31 March 2025 will be
provided to shareholders before the end of June 2025.
Alternative Performance Measures
The Board monitors performance principally through adjusted and like-for-like
performance measures. Adjusted profit and earnings per share measures exclude
certain items including the amortisation of acquired intangible assets and
goodwill impairment charges and exceptional items.
The Board believes that such alternative measures are useful as they exclude
one-off (amortisation, impairment of intangible assets and exceptional items)
and non-cash (amortisation of intangible assets) items which are normally
disregarded by investors, analysts and brokers in gaining a clearer
understanding of the underlying performance of the Group from one year to the
next when making investment and other decisions.
The key measures used as APMs are reconciled below.
2024
2025 Restated
£'000 £'000
Profit before tax as per Income Statement 21,720 2,846
Amortisation and impairment of goodwill, trade names and customer 4,062 31,198
relationships
Exceptional items 10,890 5,817
Adjusted profit before tax, amortisation, impairment of goodwill, trade names 36,672 39,861
and customer relationships and exceptional items APM ('Adjusted Profit')
Interest 10,318 9,635
Operating profit before amortisation, impairment of goodwill, trade names and 46,990 49,496
customer relationships and exceptional items
Remove interest on lease liabilities (3,699) (3,315)
Depreciation of property, plant and equipment 46,464 44,138
Amortisation of software 848 856
Adjusted EBITDA APM 90,603 91,175
2025 2024
Pence Pence
Basic earnings per share 36.6 (13.4)
Impact of amortisation, impairment of intangible assets and exceptional items 30.2 88.5
after tax
Impact of IFRS 16 0.5 (0.3)
Adjusted basic earnings per share APM 67.3 74.8
2025 2024
£'000 £'000
Net debt including lease liabilities 203,921 187,180
Lease liabilities (65,424) (61,961)
Net debt excluding lease liabilities APM 138,497 125,219
Return on Average Capital Employed (ROACE) of 14.2% (2024: 14.5%) is based on
adjusted operating profit before interest on lease liabilities divided by
average capital employed on a monthly basis using the management accounts.
Directors' Responsibility Statement in Respect of the Annual Report and
Accounts (extracted from the Annual Report and Accounts)
We confirm that to the best of our knowledge:
· The Group and Parent Company financial statements which have been
prepared in accordance with UK-adopted IASs give a true and fair view of the
assets, liabilities, financial position and profit of the Group and Parent
Company; and
· The Operational Review and Financial Review, which form part of the
Directors' Report, include a fair review of the development and performance of
the business and the position of the Company and the undertakings included in
the consolidation taken as a whole, together with the description of the
principal risks and uncertainties that they face.
For and on behalf of the Board of Directors.
J F G Pilkington K J Winstanley
Director Director
- ENDS -
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