REG - Vp PLC - Interim Results
Today 07:00
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RNS Number : 1746J Vp PLC 27 November 2025
27 November 2025
Vp plc
('Vp', the 'Group')
Interim Results
Solid first half performance, despite challenging market backdrop. Decisive
actions taken to reposition Brandon Hire Station
Vp plc, the equipment rental specialist, today announces its Interim Results
for the period ended 30 September 2025 (the 'Period')
Financial highlights
30 Sept 2025 30 Sept 2024 % change
Revenue (£m) 188.4 192.5 (2)%
Adjusted profit* (£m) 17.3 21.0 (18)%
Return on average capital employed* 12.8% 14.7% (2)ppts
Adjusted basic earnings per share* (pence) 33.0 39.0 (15)%
Interim dividend (pence per share) 11.5 11.5 -
Adjusted EBITDA* (£m) 43.0 47.0 (9)%
Net debt excluding lease liabilities* (£m) 155.9 140.4 11%
Capital investment in rental fleet (£m) 39.6 38.5 3%
Exceptional items (£m) (4.7) - >100%
Statutory profit before tax* (£m) 11.0 19.5 (44)%
Basic earnings per share (pence) 19.8 36.2 (45)%
· Solid first half performance given difficult macro-economic
environment and market backdrop
· Reduction in adjusted profit reflects challenges in the UK market, in
particular in Brandon Hire Station, where decisive actions have been taken to
reposition the division
· Strong performance in International segment led by good growth levels
in Ireland and Germany
· In Vp's end markets:
- In Infrastructure, Transmission has been strong, Water activity levels
are undergoing their usual transition from AMP7 to AMP8 and Rail activity has
been subdued, but is improving
- Specialist construction continues to perform well. General
construction remains challenging
- Housebuilding and Energy performance has been satisfactory
· The Group's Return on Average Capital Employed (ROACE*) remains
sector leading at 12.8% and the decisive actions taken on Brandon Hire Station
will see this increase in FY27
· Strong investment of £39.6m in rental fleet to support growth
opportunities, particularly in Infrastructure market and key growth
geographies of Ireland and Germany
· Robust balance sheet with leverage* expected to be c.1.6x at end of
the year, well within stated target
· Interim dividend of 11.5 pence per share, continuing an uninterrupted
30+ year track record of shareholder returns
Strategy update
· Decisive actions taken to reposition Brandon Hire Station, which
will result in a smaller, more focussed and profitable business
· These changes will progress the Group's strategy by reducing
exposure to the challenging General construction market and support Vp's major
customers, complex projects and specialist divisions:
- Division will support Vp's strategic and B2B customers only and will
no longer serve consumers (retail/ DIY)
- Asset (range and quantity) will be rationalised with a focus on higher
return assets necessary to support customer profile
- Continued national presence with c40 branches (reduced from c100) and
headcount reduction of c400, ensuring appropriate footprint to serve customer
base
- These actions are expected to meaningfully increase Group
profitability and drive an improvement in Group ROACE of 2ppts
- Executing this plan will incur an exceptional P&L charge of c£22m
in the current financial year with a total cash cost of c£16m, of which £9m
will outflow before the end of FY26
- These changes, which will require careful execution, will be
materially complete by the end of the current financial year
· Continued focus on the Group's operating model, including
progression of our digital roadmap, to enhance the customer
experience through greater efficiencies and improved cross divisional working
· Progression with the Group's People Strategy, including Vp's
first groupwide people survey, the launch of a new reward framework and
groupwide competencies
Current trading and outlook
· The second half of FY26 continues to be impacted by the backdrop of
challenging market conditions and economic uncertainty. However, activity
levels are starting to increase in key Infrastructure sectors of Water and
Rail and our businesses in Ireland and Germany continue to perform well
· Whilst the Board acknowledges both the difficult underlying market
conditions and the need to successfully execute the required actions in
Brandon Hire Station, FY26 performance is currently expected to be in line
with market expectations**
· The Group remains confident in its ability to leverage its strong
balance sheet and market position to deliver consistent returns and long-term
value for shareholders
· The CEO recruitment process is in progress with a focus on a smooth
leadership transition
Anna Bielby, Chief Executive of Vp plc, said:
"Vp's diversified and resilient businesses have delivered a good result
against a challenging and uncertain market backdrop. Our continued investment
in attractive markets such as Ireland and Germany - enabled through our robust
balance sheet - continues to yield strong returns, with improvements in our
operating model bringing more opportunities to the Group.
"The decisive actions to reposition Brandon Hire Station further progresses
the Group's strategy, ensuring greater focus on higher returns, specialist
assets and markets.
"Whilst we expect market conditions to remain difficult in the second half of
the year, performance is currently expected to be in line with market
expectations."
Analyst Briefing: 9.30am GMT Today, 27 November 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 GMT today.
Presentation with Equity Development: 10am GMT, Friday 28 November 2025
Vp management will host an online presentation for retail investors via Equity
Development at 10am GMT on Friday 28 November. 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-plc-hy-results-investor-presentation-28-november-2025)
. 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 -
* These measures are explained and reconciled in the Alternative Performance
Measures section in note 14 below.
** Vp compiled analyst consensus for 2025/2026: Revenue of £386.1m, 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
£137.3m.
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
(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 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, 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/)
Interim Review
Our specialist businesses and diversified revenue streams have enabled us to
deliver a solid performance in the first half of the year, despite challenging
macroeconomic conditions.
Decisive actions taken on Brandon Hire Station
One of the key challenges in the first half of the year has been the continued
subdued conditions within the General construction market which has impacted
the performance of the Group's Brandon Hire Station division.
We have taken decisive actions to reposition the division, which will result
in a smaller, more focussed and profitable Brandon Hire Station. These changes
will progress the Group's strategy by reducing exposure to the challenging
General construction market alongside supporting Vp's major customers, complex
projects and specialist divisions.
Brandon Hire Station will now only support Vp's strategic and B2B customers
and will no longer serve the consumer (retail/DIY) market.
This new customer focus allows us to reduce Brandon Hire Station's asset range
and concentrate on higher return, more specialised assets necessary to support
our customer profile.
The division will retain a national footprint to serve its customers, but this
footprint will reduce to c.40 branches (from c.100), with a headcount
reduction of c.400. These actions are expected to meaningfully increase Group
profitability and drive an improvement in Group ROACE of 2ppts.
Executing this plan will incur an exceptional P&L charge of c.£22m in the
current financial year with a cash cost of c.£16m (cash cost this year of
c.£9m) which represents a payback (cash basis) of four years.
As part of our assessment of Brandon Hire Station other options were explored.
The actions taken represent the lowest cost, most controllable plan which best
supports the Group's Strategy. These changes, which will require careful
execution, will be materially complete by the end of the financial year.
Maintained investment in strategic initiatives and opportunities
Aside from changes to the Group's Brandon Hire Station division, we have
continued to invest in our asset base to take advantage of those areas where
strong market opportunities exist. Consistent with FY25, we see the biggest
opportunities in Ireland and Germany and supporting Infrastructure in the UK
where large multi-year spend programmes exist. The Group's specialist
divisions are also continuing to work together closely to maximise customer
opportunities and Vp's share of wallet.
Our focus on operational excellence includes the continued evolution of our
operating model and progress with our digital roadmap where we are working
with key partners to simplify and streamline how we operate and best serve our
customers. In the first half of the year, we have been embedding a Configure,
Price, Quote tool, alongside improving our data quality and focussing on
effectively managing our Cyber risk.
Progress with our People Strategy includes the introduction of Vp's first
groupwide people survey, where we were pleased with both the level of
participation and the engagement levels of our colleagues. We also launched a
new reward framework and groupwide competencies to ensure that our people
continue to grow their careers with us.
ESG remains a key part of our strategy. We work closely with our customers to
help them meet their objectives while also making improvements to mitigate the
impact of our activities on the environment. We are increasingly focussing on
our social strategy and working with organisations like Business in the
Community to ensure that our operations have a positive societal impact.
Financial Review
The Group's revenue for the Period was £188.4m (H1 FY25: £192.5m), a
reduction of 2.1%. Adjusted profit* decreased by £3.7m to £17.3m and
statutory profit before tax decreased from £19.5m to £11.0m.
The reduction in adjusted profit has been driven by challenging trading
conditions and increased employment costs in the Group's UK segment, with
adjusted operating profit* decreasing £5.8m to £15.5m. Challenges in our UK
segment have been partially offset by our International segment, with trading
conditions in Ireland and Germany remaining favourable and particular strong
performances from last year's acquisition, CPH and our Germany portable
roadways business which serves the buoyant Transmission sector. Adjusted
operating profit for the International segment increased from £4.5m to
£6.7m. Further segmental analysis is shown in note 3.
During the Period, we incurred exceptional costs of £4.7m (H1 FY25: £nil),
with £2.4m relating to branch closures in Brandon Hire Station as part of the
measures we are taking to reposition that division. Exceptional costs also
include £1.7m of contingent remuneration for post-combination services
associated with last year's CPH acquisition, and £0.6m of other
transformational costs.
Net debt excluding lease liabilities* increased to £155.9m (H1 FY25:
£140.4m) reflecting the continued investment in our rental fleet, targeting
areas that offer strongest returns and growth potential, which include
Specialist construction in Ireland and the Transmission sector in Germany.
The balance sheet continues to be well managed with a small working capital
outflow in the Period and well controlled debtors with Days' Sales Outstanding
of 54 (H1 FY25: 57).
Despite the increase in net debt, we continue to operate with a good level of
headroom and remain well within our stated leverage target of less than 2x.
Post Period end, we were pleased to extend our revolving credit facility for a
further year to November 2028.
Return on average capital employed (ROACE)* was 12.8% (H1 FY25: 14.7%),
impacted by challenging conditions in the Group's UK segment.
Adjusted basic earnings per share* decreased in line with the reduction in
adjusted profit to 33.0 pence per share (H1 FY25: 39.0 pence per share).
Operating Review
During the Period we have seen varied conditions across the Group's four main
end markets.
Infrastructure
Revenue in Infrastructure is consistent with H1 FY25 but performance was mixed
across our segments. We remain optimistic about our opportunities within
Infrastructure which are underpinned by large non-discretionary multi-year
spend programmes.
Activity levels in Transmission remain strong, particularly in Germany where
the Group has continued to invest significant capex to take advantage of
favourable market conditions where high levels of demand exists to support the
construction of new high voltage transmission lines as part of the German Grid
Development Plan.
Transmission markets have also been supportive in the UK during the Period and
continue to represent an opportunity across our specialist divisions.
Electricity demand has quadrupled in the last 70 years and the National Grid
requires significant investment and modernisation to meet demand and to
connect Britain to more affordable sources of homegrown energy.
Prospects in Water remain extremely positive. However, revenue in the first
half of the year was lower than H1 FY25 as capital delivery programmes
undertook their normal transition from AMP7 to AMP8. As we enter the second
half of FY26 we are seeing activity levels increase as AMP8 design and
planning work progresses.
We expect Water revenue to increase in the second half of the financial year
with anticipation of a strong FY27 onwards. Our specialist divisions and the
nature of our assets means that we are well positioned to capitalise on
opportunities supporting critical Water infrastructure upgrades with a focus
on areas such as sustainability and compliance.
Market conditions in Rail remained subdued in the Period due to the continued
slow start to Network Rail's CP7. In recent months we have seen activity
levels increase and we remain cautiously optimistic about the second half of
the year and beyond.
Our Vp Rail offering means we are easier to do business with, and our
customers can simply access the rail solutions from each of our specialist
divisions from one place. We continue to invest in the best and most
innovative rail products, fulfilling the needs of Network Rail and major
contractors.
Prospects in Rail remain positive as we look to take advantage of planned
investment in CP7, projects outside of CP7 along with opportunities in both
Northern Ireland and the Republic of Ireland.
Construction
Our revenue in Construction increased compared to H1 FY25, with Specialist
construction revenue increasing (and benefitting from the prior year
acquisition of CPH which is performing ahead of expectations) being offset by
the continuing tough market conditions in General construction.
The good performance in Specialist construction has been seen in both the UK
and Ireland. In the UK, we continue to benefit from strong levels of fit out
and refurbishment projects. The market remains supportive in the Republic of
Ireland with continued overseas investment and positive sector sentiment,
particularly around big Pharma, data centres and renewables.
Prospects in Specialist construction remain strong and we enter the second
half of FY26 with optimism.
The General construction market has remained challenging, impacting both
revenue and profit in the Period. In response to this, decisive actions have
been taken to reposition Brandon Hire Station as a smaller more focussed
profitable business. Brandon Hire Station will support Vp's strategic and B2B
customers and will no longer serve the consumer (retail/DIY) market.
Housebuilding
The Group's Housebuilding performance has benefitted from operating model
changes made in the last financial year. However, activity remains subdued,
despite the UK Government's ambitious build targets of 1.5 million homes.
Growth in housing starts is forecast to be gradual, hampered by planning and
supply chain challenges, though demand fundamentals remain positive.
Energy
The Energy sector continues to be impacted by macroeconomic factors and our
revenue for the Period decreased as a result of project delays alongside a
lower level of planned industrial shutdown projects than H1 FY25. The outlook
remains mixed, with opportunities likely to come from drilling and associated
pipeline activities.
Dividend
The Board is declaring an interim dividend of 11.5 pence per share (H1 FY25:
11.5 pence per share) payable on 15 January 2026 to shareholders on the
register as at 5 December 2025. As previously stated, our target dividend
cover is 2x over the cycle and the interim dividend announced today maintains
the Group's 30+ year uninterrupted dividend track record.
CEO Succession
Anna Bielby will continue to lead the Group as CEO until 31 March 2026,
ensuring the progression of both the Group's strategy and the actions taken to
reposition Brandon Hire Station. The recruitment process to appoint a
successor is in progress and an update will be provided in due course.
Outlook
The second half of FY26 continues to be impacted by the backdrop of
challenging market conditions and economic uncertainty, however, activity
levels are starting to increase in key Infrastructure sectors of Water and
Rail and our businesses in Ireland and Germany continue to perform well.
Whilst the Board acknowledges both the difficult underlying market conditions
and the need to successfully execute the required actions in Brandon Hire
Station, FY26 performance is currently expected to be in line with market
expectations**.
The Group remains confident in its ability to leverage its strong balance
sheet and market position to deliver consistent returns and long-term value
for shareholders.
* These measures are explained and reconciled in the Alternative Performance
Measures section in note 14 below.
** Vp compiled analyst consensus for 2025/2026: Revenue of £386.1m, 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
£137.3m
Condensed Consolidated Income Statement
For the period ended 30 September 2025
Six months to Six months to Full year to
30 Sept 2025 30 Sept 2024 31 Mar 2025
Note £000 Restated*
£000 £000
188,359
Revenue 3 192,457 379,957
Cost of sales (140,997) (145,086) (287,839)
Gross profit 47,362 47,371 92,118
Administrative expenses (34,135) (25,983) (65,416)
Impairment losses on trade receivables (982) (605) (1,753)
Impairment of intangible assets - - (884)
Profit on disposal of property, plant and equipment 3,624 3,578 7,973
Operating profit 3 15,869 24,361 32,038
Net financial expense (4,918) (4,816) (10,318)
Profit before tax, amortisation and impairment of goodwill, trade names and 17,337 21,049 36,672
customer relationships and exceptional items
Amortisation and impairment of goodwill, trade names and customer (1,718) (1,504) (4,062)
relationships
Exceptional items 4 (4,668) - (10,890)
Profit before tax 10,951 19,545 21,720
Income tax expense 5 (3,142) (5,271) (7,275)
Profit after tax 7,809 14,274 14,445
Pence Pence Pence
Basic earnings per share 7 19.8 36.2 36.6
Diluted earnings per share 7 19.7 36.0 36.5
Dividend per share 8 11.5 11.5 39.5
* See note 1 explaining a change in presentation to the income statement.
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 September 2025
Six months to Six months to Full year to
30 Sept 2025 30 Sept 2024 31 Mar 2025
£000 £000 £000
Profit for the period 7,809 14,274 14,445
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss -
Remeasurements of defined benefit pension scheme - (746)
Tax on items taken to other comprehensive income - - 342
Items that may be subsequently reclassified to profit or loss
Foreign exchange translation difference 2,789 (1,001) (1,886)
Tax on items taken to other comprehensive income - - 247
Net investment hedge (1,725) - (22)
Other comprehensive income/(expense) 1,064 (1,001) (2,065)
Total comprehensive income for the period 8,873 13,273 12,380
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2025
Note Six months to Six months to Full year to
30 Sept 2025 30 Sept 2024 31 Mar 2025
£000 £000 £000
Profit for the period 7,809 14,274 14,445
Other comprehensive income/(expense) 1,064 (1,001) (2,065)
Tax movements to equity - 6 -
Share based payments expense in the period 147 267 433
Net movement relating to shares held by Vp Employee Trust (56) (111) (41)
Dividends to shareholders 8 (11,062) (10,853) (15,394)
Change in equity during the period (2,098) 2,582 (2,622)
Equity at the start of the period 150,398 153,020 153,020
Equity at the end of the period 148,300 155,602 150,398
There were no movements in issued share capital, the capital redemption
reserve or share premium in the reported periods.
Condensed Consolidated Balance Sheet
At 30 September 2025
Note 30 Sept 2025 30 Sept 2024* Restated 31 Mar 2025
£000 £000 £000
Non-current assets
286,382 267,189 271,058
Property, plant and equipment 6
Intangible assets 28,438 26,904 29,398
Right of use assets 57,914 57,711 57,832
Employee benefits 757 1,778 858
Total non-current assets 373,491 353,582 359,146
Current assets
Inventories 8,661 9,600 9,911
Trade and other receivables 73,285 79,394 71,473
UK Income tax receivable 2,708 104 2,019
Cash and cash equivalents 9 24,880 22,328 29,870
Total current assets 109,534 111,426 113,273
483,025 465,008 472,419
Total assets
Current liabilities
Lease liabilities (17,818) (16,177) (17,609)
Overseas income tax payable (2,592) (1,692) (2,275)
Trade and other payables (61,106) (64,455) (63,622)
Bank overdraft 9 (14,256) (13,294) (17,202)
Total current liabilities (95,772) (95,618) (100,708)
Non-current liabilities
Interest bearing loans and borrowings 9 (166,485) (149,465) (151,165)
Lease liabilities (47,939) (44,571) (47,815)
Other payables (5,121) - (2,608)
Provisions (2,489) (3,006) (2,937)
Deferred tax liabilities (16,919) (16,746) (16,788)
Total non-current liabilities (238,953) (213,788) (221,313)
(334,725) (309,406) (322,021)
Total liabilities
Net assets 148,300 155,602 150,398
Equity
2,008 2,008 2,008
Issued share capital
Capital redemption reserve 301 301 301
Share premium 16,192 16,192 16,192
Hedging reserve (1,747) - (22)
Foreign currency translation reserve (1,136) (3,041) (3,926)
Retained earnings 132,682 140,142 135,845
Total equity 148,300 155,602 150,398
* See note 1 explaining a change to present the bank overdraft gross of cash
and cash equivalents.
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2025
Note Six months to Six months to Full year to
30 Sept 2025 30 Sept 2024 31 Mar 2025
£000 £000 £000
Cash flows from operating activities 10,951
Profit before taxation
19,545 21,720
Adjustment for:
Share based payment charges expense 147 267 433
Depreciation of property, plant and equipment 6 22,334 22,442 46,464
Impairment of property, plant and equipment - - 1,174
Depreciation of right of use assets 9,801 8,659 18,396
Impairment of right of use assets - - 4,219
Impairment of intangible assets - - 884
Bargain purchase - - (1,085)
Contingent remuneration 1,736 - 1,800
Amortisation of intangible assets 2,120 1,933 4,026
Release of arrangement fees 100 185 346
Net financial expense 4,918 4,816 10,318
Profit on disposal of property, plant and equipment (3,624) (3,578) (7,973)
Operating cash flow before changes in working capital and provisions 48,483 54,269 100,722
Decrease / (increase) in inventories 1,276 (52) (363)
(Increase) / decrease in trade and other receivables (1,532) (4,641) 4,154
Decrease in trade and other payables (3,032) (7,330) (8,559)
Decrease in provisions (448) (154) (223)
Cash generated from operations 44,747 42,092 95,731
Interest paid (2,991) (3,183) (6,795)
Interest element of lease liability payments (2,014) (1,736) (3,698)
Interest received 13 97 117
Income tax paid (3,414) (1,502) (4,618)
Net cash flows from operating activities 36,341 35,768 80,737
Proceeds from sale of property, plant and equipment 11,660 11,647 23,745
Purchase of property, plant and equipment (42,103) (41,997) (72,869)
Purchase of intangible assets (212) (266) (800)
Acquisitions (net of cash acquired) (940) - (9,945)
Net cash flows used in investing activities (31,595) (30,616) (59,869)
Cash flows from financing activities
Purchase of own shares by Employee Trust (56) (111) (41)
Repayment of borrowings (2,000) (5,000) (38,000)
Drawdown of borrowings 15,718 23,000 57,738
Arrangement fees - - (199)
Principal payment of lease liabilities (9,580) (8,942) (17,985)
Dividends paid 8 (11,062) (10,853) (15,394)
Net cash flows used in financing activities (6,980) (1,906) (13,881)
Net (decrease) / increase in cash and cash equivalents (2,234) 3,246 6,987
Effect of exchange rate fluctuations on cash held 190 (273) (380)
Cash and cash equivalents net of overdraft at beginning of period 12,668 6,061 6,061
Cash and cash equivalents net of overdrafts at end of period 9 10,624 9,034 12,668
Notes to the Condensed Financial Statements
1. Basis of preparation
Vp plc (the "Company") is a company limited by shares, incorporated and
domiciled in the United Kingdom. Its registered office and principal place of
business is Central House, Beckwith Knowle, Otley Road, Harrogate, North
Yorkshire, HG3 1UD. Its shares are listed on the London Stock Exchange. The
Condensed Consolidated Interim Financial Statements of the Company for the
half year ended 30 September 2025 consolidate the financial information of the
Company and its subsidiaries (together referred to as the "Group").
The condensed interim financial statements have been prepared using accounting
policies set out in the Annual Report and Accounts 2025. They are unaudited
and have not been reviewed by the Company's auditor. This report has been
prepared in accordance with the UK-adopted International Accounting Standard
34 'Interim Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority.
The results for the year ended 31 March 2025 and the Consolidated Balance
Sheet as at that date are abridged from the Group's Annual Report and Accounts
2025 which have been delivered to the Registrar of Companies. The auditor's
report on those accounts was unqualified, did not draw attention to any
matters by way of emphasis and did not contain statements under sections 498
(2) or (3) of the Companies Act 2006.
The condensed interim financial statements do not constitute statutory
accounts within the meaning of Section 434 of the Companies Act 2006.
The interim announcement was approved by the Board of Directors on 26 November
2025.
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates. In preparing
these condensed consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting policies and
key sources of estimation uncertainty were the same as those that applied to
the consolidated financial statements for the year ended 31 March 2025.
The Group continues to be in a healthy financial position with total banking
facilities at the Period end of £190.5 million, including an overdraft
facility. Since the year end, net debt excluding lease liabilities has
increased by £17.4 million to £155.9 million, which is £15.5 million higher
than 30 September 2024. The Board has evaluated the banking facilities and the
associated covenants on the basis of current forecasts, taking into account
the current economic climate. These forecasts have been subjected to
sensitivity analysis, involving the flexing of key assumptions reflecting
severe but plausible scenarios, including a downturn in economic activity.
Based on this assessment, the Directors have a reasonable expectation that the
Group will be able to continue in operation and meet its liabilities as they
fall due. Having reassessed the principal risks the Directors consider it
appropriate to adopt the going concern basis of accounting in preparing the
interim financial information.
The Group changed the presentation of the profit on disposal of property,
plant and equipment for the year ended 31 March 2025, which was a change in
presentation, previously such profits were presented within cost of sales.
The impact of the change on the comparator figures for 30 September 2024 is to
show a profit on disposal of £3.6m on the face of the income statement and
increase cost of sales by the same amount. There was no change to operating
profit or profit before tax.
1. Basis of preparation (continued)
Following a review of the cash pooling arrangements at 31 March 2025, bank
overdrafts have been presented gross of cash and cash equivalents on the face
of the Consolidated Balance Sheet as the Group does not routinely net settle
balances in the cash pool. The comparators at 30 September 2024 have been
restated accordingly. The impact on the Consolidated Balance Sheet at 30
September 2024 has been to increase cash and cash equivalents and bank
overdraft by £13,294,000.
2. Risks and uncertainties
The principal risks and uncertainties facing the Group and the ways in which
they are mitigated are described on pages 41 to 44 of the 31 March 2025 Annual
Report and Accounts. As part of the interim reporting process, the Group's
Risk Committee conducted a comprehensive review of Vp's principal risks and
concluded that there had been no change to principal risks or risk levels. The
principal risks and uncertainties are: market and competition, people and
culture, fleet management and investment, health & safety, financial,
governance and legal/regulatory requirements, climate and environment, and
technology and IT resilience.
3. Summarised segmental analysis
Revenue Adjusted operating profit
Sept Sept Mar Sept Sept Mar
2025 2024 2025 2025 2024 2025
£000 £000 £000 £000 £000 £000
UK 152,440 162,629 317,617 15,520 21,368 37,405
International 35,919 29,828 62,340 6,735 4,497 9,585
188,359 192,457 379,957 22,255 25,865 46,990
Amortisation and impairment of goodwill, trade names and customer (1,718) (1,504) (4,062)
relationships
Exceptional items (4,668) - (10,890)
Operating profit 15,869 24,361 32,038
Below is a summary of the disaggregation of revenue from contracts with
customers from the total revenue disclosed in the Condensed Consolidated
Income Statement:
Sept 2025 Sept 2024 Mar 2025
£000 £000 £000
Equipment hire 143,017 145,172 285,781
Services 34,591 34,656 67,104
Sales of goods 10,751 12,629 27,072
Total revenue 188,359 192,457 379,957
4. Exceptional items
During the half year ended 30 September 2025, the Group incurred £4.7m of
exceptional costs (H1 FY25: £nil) which related to continued branch closure
costs of £2.4m in the Group's Brandon Hire division (H1 FY25: £nil), further
contingent remuneration for post-combination services of £1.7m (H1 FY25:
£nil) and system and structural changes required to enable transformation
projects with the Group £0.6m (H1 FY25: £nil). Further details of the
Group's exceptional charges related to 31 March 2025 are included in the
Annual Report and Accounts on page 99.
5. Income tax
The effective tax rate is 28.7% in the half year ended 30 September 2025 (H1
FY25: 27.0%). The effective rate for the Period reflects the current standard
tax rate of 25% (H1 FY25: 25%), as adjusted for estimated permanent
differences for tax purposes offset by gains covered by exemptions. The rate
includes the effect of higher statutory tax rates levied in Australia and
Germany.
6. Property, Plant and Equipment
Sept 2025 Mar 2025 Sept 2024
£000 £000 £000
Opening carrying amount 271,058 256,944 256,944
Additions 43,299 71,302 41,470
Acquisitions 312 7,529 -
Depreciation (22,334) (46,464) (22,442)
Impairment - (1,174) -
Disposals (7,970) (15,770) (8,071)
Effect of movements in exchange rates 2,017 (1,309) (712)
Closing carrying amount 286,382 271,058 267,189
The value of capital commitments at 30 September 2025 was £7.0m (31 March
2025: £20.5m).
7. Earnings per share
Earnings per share have been calculated on 39,506,993 shares (H1 FY25:
39,472,640 shares) being the weighted average number of shares in issue during
the Period excluding those shares held by Vp Employee Trust. Diluted earnings
per share have been calculated on 39,571,803 shares (H1 FY25: 39,613,501
shares) adjusted to reflect conversion of all potentially dilutive ordinary
shares. The calculation of diluted earnings per share does not assume
conversion, exercise, or other issue of potential ordinary shares that would
have an antidilutive effect on earnings per share.
Basic earnings per share before amortisation and impairment of goodwill, trade
names and customer relationships and exceptional items was 33.0 pence (H1
FY25: 39.0 pence) ("Adjusted Basic EPS") and was based on an after-tax add
back of £5,224,000 (H1 FY25: £1,128,000) in respect of the amortisation of
intangibles and exceptional items. Diluted earnings per share before
amortisation and impairment of goodwill, trade names and customer
relationships and exceptional items was 32.9 pence (H1 FY25: 38.9 pence).
8. Dividends
The Directors have declared an interim dividend of 11.5 pence per share (H1
FY25: 11.5 pence) payable on 15 January 2026 to shareholders on the register
as at 5 December 2025. The dividend declared will absorb an estimated £4.6
million (H1 FY25: £4.6 million) of shareholders' funds.
The cost of dividends in the Statement of Changes in Equity is after
adjustments for the interim and final dividends waived by the Vp Employee
Trust in relation to the shares it holds for the Group's share option schemes.
9. Analysis of net debt
As at Cash Non-cash As at
1 Apr 2025 flow movements 30 Sept 2025
£000 £000 £000 £000
Cash and cash equivalents net of overdrafts (12,668) 2,234 (190) (10,624)
Secured loans 151,738 13,718 1,502 166,958
Arrangement fees (573) - 100 (473)
Net debt excluding lease liabilities 138,497 15,952 1,412 155,861
Lease liabilities 65,424 (9,580) 9,913 65,757
Net debt including lease liabilities 203,921 6,372 11,325 221,618
The Group has two private placements with PGIM Inc. for £65 million (maturing
in January 2027) and £28 million (maturing in April 2028). The Group also has
a committed revolving credit facility of £90 million which was refinanced in
November 2023. The Group also has overdraft facilities of £7.5 million,
leading to total available facilities of £190.5 million.
10. Related party transactions
Transactions between Group Companies, which are related parties, have been
eliminated on consolidation and therefore do not require disclosure. The Group
has not entered into any other related party transactions in the Period which
require disclosure in this interim statement.
11. Contingent liabilities
In an international group a variety of claims arise from time to time in the
normal course of business. Such claims may arise due to actions being taken
against Group Companies as a result of investigations by fiscal authorities or
under regulatory requirements. Provision has been made in these Consolidated
Financial Statements against any claims which the Directors consider likely to
result in significant liabilities.
12. Post balance sheet event
In November 2025, the Group extended its revolving credit facility, which now
matures in November 2028.
13. Forward looking statements
The Interim Review includes 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. Statements in respect of the Group's performance
in the year to date are based upon unaudited management accounts for the
period 1 April 2025 to 30 September 2025. Nothing in this announcement should
be construed as a profit forecast.
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.
14. Alternative Performance Measures ('APMs')
The Board monitors performance principally through adjusted and like-for-like
performance measures or APMs. Adjusted profit and earnings per share measures
exclude certain items, including the impact on net debt of IFRS 16,
amortisation of acquired intangible assets, impairment charges and exceptional
items.
The Board believes that such alternative measures are useful as they exclude
one-off (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. Equally, IFRS 16 is excluded from net debt
measures used by these same stakeholders and so is removed from certain APMs.
The key measures used as APMs are reconciled below:
Sept 2025 Sept 2024 Mar 2025
£000 £000 £000
Profit before tax as per Income Statement 10,951 19,545 21,720
Amortisation and impairment of goodwill, trade names and customer 1,718 1,504 4,062
relationships
Exceptional items 4,668 - 10,890
Adjusted profit before tax, amortisation and impairment of goodwill, trade 17,337 21,049 36,672
names and customer relationships and exceptional items APM ('Adjusted profit')
Net interest 4,918 4,816 10,318
Operating profit before tax, amortisation and impairment of goodwill, trade 22,255 25,865 46,990
names and customer relationships and exceptional items APM ('Adjusted
operating profit')
Remove interest on lease liabilities (1,984) (1,732) (3,699)
Depreciation of property, plant and equipment 22,334 22,442 46,464
Amortisation of software 402 429 848
Adjusted EBITDA APM 43,007 47,004 90,603
Add back interest on lease liabilities 1,984 1,732 3,669
Depreciation on right of use assets 9,801 8,659 18,396
Adjusted EBITDA post IFRS 16 54,792 57,395 112,698
Net margin of 9.2% (H1 2025: 10.9%) is calculated by dividing adjusted profit
before tax, amortisation and impairment of goodwill, trade names and customer
relationships and exceptional items by revenue.
Sept 2025 Sept 2024 Mar 2025
Pence Pence Pence
Basic earnings per share 19.8 36.2 36.6
Impact of amortisation and impairment of goodwill, trade names and customer 13.2 2.8 30.2
relationships and exceptional items after tax
Impact of IFRS 16 - - 0.5
Adjusted basic earnings per share APM 33.0 39.0 67.3
14. Alternative Performance Measures (continued)
Sept 2025 Sept 2024 Mar 2025
£000 £000 £000
Net debt including lease liabilities 221,618 201,179 203,921
Lease liabilities (65,757) (60,748) (65,424)
Net debt excluding lease liabilities APM 155,861 140,431 138,497
Return on average capital employed (ROACE) is based on adjusted operating
profit before tax, amortisation and impairment of goodwill, trade names and
customer relationships and exceptional items as defined above divided by
average capital employed on a monthly basis using the management accounts
excluding IFRS16.
Leverage is defined as net debt divided by EBITDA using the management
accounts excluding IFRS16.
Responsibility statement of the Directors in respect of the half-yearly
financial report
We confirm that to the best of our knowledge:
· the condensed consolidated set of interim financial statements has
been prepared in accordance with UK-adopted IAS 34 Interim Financial
Reporting;
· the interim management report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By order of the Board
26 November 2025
The Board
The Directors who served during the six months to 30 September 2025 were:
Jeremy Pilkington (Chair)
Anna Bielby (Chief Executive Officer)
Keith Winstanley (Chief Financial Officer)
Stuart Watson (Non-Executive Director)
Mark Bottomley (Non-Executive Director)
Richard Smith (Non-Executive Director)
Phil White (Non-Executive Director) Retired 30 June 2025
- Ends -
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