REG - Vp PLC - Final Results
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RNS Number : 6499H Vp PLC 10 June 2026
For immediate release 10 June 2026
Vp plc
('Vp', the 'Group' or the 'Company')
Final Results
Operational discipline and strategic transformation driving resilient
performance across the Group
Vp plc, the equipment rental specialist, announces its audited Final Results
for the year ended 31 March 2026.
Alice Woodwark, Chief Executive Officer of Vp, commented:
"We delivered a resilient performance against a tough macro-economic
environment, while also completing our restructuring programme at Brandon Hire
Station on time and as planned. Our diverse and collaborative specialist
businesses are driving sector leading returns, and our performance will
benefit from the continued execution of our strategic priorities in the
current financial year.
"Following a review of the Group during my first three months as CEO, I am
encouraged by the strength of the business, the expertise of our people and
the opportunity ahead. Our people have the skills, culture and commitment
needed to deliver our next wave of growth. While there is more to do, the
foundations are firmly in place to create sustained value for shareholders.
Confidence in the underlying fundamentals of the business supports our
decision to maintain the dividend year on year."
Financial highlights
31 March 2026 31 March 2025 % change
Revenue (£m) 358.3 380.0 (5.7)%
Adjusted Profit* (£m) 27.0 36.7 (26.4)%
Return on Average Capital Employed* 11.2% 14.2% (3.0)pp
Adjusted basic EPS* (pence per share) 54.5 66.8 (18.4)%
Proposed final dividend (pence per share) 28.0 28.0 -
Proposed dividend for the year (pence per share) 39.5 39.5 -
Adjusted EBITDA* (£m) 78.0 90.6 (13.9)%
Net debt excluding lease liabilities* (£m) 148.9 138.5 (7.5)%
Capital investment in rental fleet (£m) 51.6 65.4 (21.1)%
Statutory (loss)/profit before tax (£m) (7.0) 21.7 >(100)%
Statutory (loss)/earnings per share (pence) (13.8) 36.6 >(100)%
* These measures are explained and reconciled in the Alternative Performance
Measures section below.
Highlights
· 30% growth in International segment profits driven by strategic
investment in supportive markets
· In Vp's end markets:
- In Infrastructure, Transmission and Rail activity has been steady.
Water revenues have declined in FY26 on the transition from the AMP7 Control
Period to AMP8, but Vp sees activity increasing entering AMP8 year 2
- Specialist Construction continues to perform well; General
Construction remains challenging
- Housebuilding and Energy performance has been satisfactory
· The balance sheet remains well controlled, with leverage below
our stated target of 2x, providing for continued investment of £51.6m in
rental fleet to support growth opportunities
· Recommended full year dividend of 39.5 pence per share,
maintaining a 30+ year uninterrupted dividend track record
· Adjusted profit of £27.0m in line with previously revised
guidance
Strategic update
Vp's Growth and Operational Excellence strategy is progressing positively.
Overseas investment is yielding returns with International segment revenues up
14% and profits up 30% year on year. Vp Rail is contributing to growth
beyond Network Rail: 2026 wins include supplying the Manchester Metrolink
and a new cross-divisional commercial agreement with a major HS2 contractor.
We are also delivering stronger operational performance through the Vp digital
roadmap. Vp's price-quote tool is now live in Groundforce, demonstrating
improvements in average order margins. Implementation of a Group-wide CRM
system commences Q2 FY27.
The Brandon Hire Station restructure has successfully completed, positioning
Brandon as a B2B-only specialist trade business targeting strategic Vp
customers seeking a comprehensive equipment hire offer. This change in
operating model is expected to deliver a cash payback of 4 years.
· Brandon branch network reduced from 119 to 41
· Headcount and rental fleet reduced significantly, by 400 and 40%
respectively
· Restructure has incurred a £25m exceptional P&L charge, with
£10.5m of cash outflows in the period. A further £10.6m of cash outflows
is expected in future years. Total cash outflows of £21.1m reflect our
updated and externally validated assessment as we have moved through the
execution phase of the programme.
Entering FY27, Vp is developing its strategy into a comprehensive medium-term
plan. A short diagnostic undertaken early in FY27 confirms this plan will
target growth in areas suited to Vp's high-expertise model, underpinned by a
more centralised 'Vp way' of efficient equipment hire operations. Further
details will be shared within the financial year.
Current trading and outlook
Vp continues to experience challenging market dynamics as it enters the new
financial year, with UK construction activity particularly sluggish. However,
the Group expects an improvement in year-on-year trading in FY27 driven by the
restructure of Brandon Hire Station, investment in its digital roadmap and
other Vp-wide capabilities, and improved demand across core infrastructure
markets.
Trading in the new financial year is expected to be in line with current
market expectations.*
Analyst Briefing: 9.30am BST Today, Wednesday 10 June 2026
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, the slides will be made
available on the Group's Investor Relations website here
(https://www.vpplc.com/investors) .
Presentation with Equity Development: 10am BST, Friday 12 June 2026
Vp management will host an online presentation for retail investors via Equity
Development at 10am BST on Friday 12 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 2026/2027: Revenue of £352.1m, adjusted
profit of £33.1m and pre-IFRS 16 net debt of £150.8m.
For further information:
Vp plc
Alice Woodwark, Chief Executive Officer 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/Victoria Heslop 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
The year ended 31 March 2026 has been one of both progress and challenge. We
delivered a resilient performance, against a tough macro-economic environment.
Our diverse and increasingly collaborative businesses are driving
sector-leading returns. I am encouraged by the strength of the Group and the
commitment demonstrated by our people, who responded decisively and
effectively in a challenging market context.
As we head into a new financial year, I am confident that we have in place a
strong set of divisions with a reduced physical footprint and a clear
customer-led asset offer, which will unlock the next wave of revenue and
margin opportunities. This strength is partly due to the completion of the
Brandon Hire Station transformation, which has repositioned our business for
improved efficiency, utilisation and long-term profitability as a purely
business-to-business expert hire company.
The broader macro-economic environment, which remained uncertain throughout
the year, resulted in mixed conditions across our end markets. Against this
backdrop, the business delivered a disciplined financial performance,
maintained strong operational control and continued to advance its strategic
priorities. This achievement reflects the strength of our diversified model
and the focus and effort needed to embed this across the Group.
We continue to see compelling long-term drivers in our core infrastructure
markets. Demand linked to electricity transmission remains robust, and we are
well positioned to support ongoing investment in energy networks across the UK
and Europe. Rail activity is steady, with encouraging visibility of future
project pipelines. The water sector will present significant opportunities as
AMP8 progresses. In Construction, specialist markets remain supportive,
although housebuilding has yet to recover.
My initial priority has been to focus on operational discipline and accelerate
the execution of our strategy. We are successfully enhancing collaboration
across our divisions, increasing the proportion of multi-divisional projects
and sharpening our focus on specialist, infrastructure-led markets. At the
same time, our digital roadmap is progressing, improving pricing, customer
experience and efficiency.
Operational review
Infrastructure
Infrastructure is one of our largest end markets and an increasing source of
high quality, cycle-resilient customer investment. Our solutions-based
approach meets our customers' complex needs, delivering strong returns.
-Rail
We support major projects, renewals, maintenance and access solutions across
the rail network in the UK. Our customer base spans Network Rail, its Alliance
partners, major contractors and a broad range of SMEs, which play an
increasingly vital role in UK rail projects. Through Vp Rail, customers get
streamlined access to the Group's full rail and infrastructure capability
through a centralised, integrated offering.
As we enter the third year of the five-year Control Period (CP7), the overall
bank of work remains lower than originally anticipated, due to inflationary
and wider economic pressures. Even though the market has been subdued, Vp has
maintained its market share and our innovative and differentiated solutions
place us in a strong position to capitalise on opportunities for large
enhancement schemes.
We are delivering services on major programmes including the TransPennine
Route Upgrade and HS2, which reinforces our role as a trusted partner working
on nationally significant infrastructure. We are providing plant and trackside
services to support a major contractor on the rail link for the Sizewell C
Rail Programme, and early in 2026, we secured a new contract to support a
major programme of work on the Manchester Metrolink light rail system.
-Water
While revenues associated with the water sector have remained relatively
subdued during the year, the nature of activity undertaken throughout the
period has been strategically important in positioning the business for the
future growth opportunities that we anticipate from 2026/27 onwards and
throughout the remainder of the AMP cycle. The work completed during the year
has been focused not only on supporting current customer requirements, but
also on ensuring that we remain closely aligned with customers' forward order
books, investment programmes, and long-term planning activities as the sector
progresses into AMP8 delivery phases.
A significant proportion of the activity undertaken has centred on supporting
customers through early-stage project development and mobilisation planning.
This has included extensive design and technical support work associated with
excavation projects, as well as specialist, bespoke training programmes
tailored specifically for water sector customers, particularly in the areas of
confined-space operations and safety compliance. These training initiatives
further strengthen our customer relationships while reinforcing our position
as a trusted partner within the sector. Throughout the year, we have also
continued to work closely with our customers to ensure that we invest
appropriately and innovatively where possible to support projects throughout
the remainder of the AMP cycle.
We have well established relationships directly with a number of water
authorities, in addition to those with several key Tier 1 contractors
operating within the industry. Across many of these relationships, future
spend allocations and investment programmes are already well defined, with a
number of projects now progressing through planning, design, and early-stage
development phases. As these programmes move into mobilisation and delivery,
we believe that the Group is well positioned to capitalise on the substantial
committed investment associated with AMP8, which extends through to 2030.
To further strengthen engagement across the sector and demonstrate the breadth
of the Group's capabilities, in September 2025, we hosted a Group-wide AMP8
Day. The event provided an opportunity to showcase the full extent of our
offering to both contractors and water authorities, bringing together product
specialists from across the Group, and highlighted the advantages of our
collaborative, Group-wide approach, thereby reinforcing our ability to support
customers throughout the AMP cycle.
-Transmission
In both the UK and Germany, we have invested heavily in temporary access
solutions to support principal contractors and delivery partners with projects
on overhead line, substation and wider network infrastructure works.
In the UK, we continued to see steady progress in the transmission sector,
with demand supported by major grid upgrade activity, refurbishment programmes
and renewable connection works. Temporary access remained a key requirement,
particularly on projects in remote areas or where there are difficult ground
conditions. We supported a number of transmission schemes, including ongoing
works on the National Grid's Yorkshire Green project, where we provided
significant volumes of trackway and operational resources to support
installation, re-siting and recovery activities. The outlook looks positive
and is supported by the scale of planned network investment.
In Germany, we saw continued activity in the transmission sector, supported by
large-scale grid replacement and upgrade programmes linked to the energy
transition. Temporary access solutions remained critical, particularly on
long-distance overhead line projects with challenging ground conditions. We
supported the Stade-Landesbergen 380 kV replacement scheme, a 155-kilometre
corridor designed to increase capacity for renewable energy flows through the
installation of circa 3,500 panels. The outlook for the German transmission
market remains positive, underpinned by the scale and complexity of ongoing
infrastructure investment.
Construction
Investment has been focused on Specialist Construction, where clearer market
opportunities exist and returns are strongest.
-Specialist Construction
Our divisions provide specialist assets, such as highly technical survey and
scanning equipment, press-fit tools and access equipment to targeted end
markets. These include site redevelopments and regeneration projects,
commercial fitouts across offices and controlled clean-room environments. We
support customers operating in critical sectors such as data centres, food and
beverage manufacturing and the pharmaceutical industry. We enjoyed good market
activity levels during the year, and these are expected to continue. Last
year's Irish acquisition, CPH, has integrated well within the Group.
Opportunities continue to exist for CPH within the growing pharmaceutical,
renewables, technology and food ingredient sectors.
-General Construction
General Construction principally relates to the Group's Brandon Hire Station
division.
Brandon Hire Station restructure
The Group has now completed a comprehensive restructuring of our Brandon Hire
Station division, with all material elements delivered on time and to plan by
March 2026.
This programme, outlined in November 2025, was undertaken in response to
sustained challenging conditions in the General Construction market. The
decisive actions that were taken aligned closely with the Group's strategic
priorities and have repositioned the division as a smaller, more focused and
sustainable business.
The steps taken have created a more streamlined and operationally efficient
business, with greater emphasis on business to-business activities across a
smaller footprint. Brandon Hire Station continues to play an important role in
supporting other divisions within our business, where customers are seeking a
comprehensive solution.
The General Construction market has remained subdued, with lower activity
levels and continued pressure on utilisation and returns. It was against this
backdrop that we decided to end our exposure to the consumer (retail/DIY)
market segment because of a limited ability to deliver acceptable returns. The
restructuring process was driven by a clear objective: to reduce market
exposure, simplify the operating model and prioritise higher quality.
This restructuring was executed in full and in line with the plans set out in
November:
· Exit from the consumer market and repositioning of the business
exclusively around business-to-business customers.
· Rationalisation of the asset fleet, reducing net book value by
approximately 40%.
· Reduction of the branch network as planned from 119 to 41 branches,
maintaining national coverage while significantly lowering the fixed cost
base.
· Headcount reduction of circa 400 colleagues, implemented with the
appropriate care and support.
The successful completion of this restructuring positions Brandon Hire Station
to operate with improved margins, stronger asset utilisation and greater
resilience. The division is now better aligned to Vp's core strengths,
supporting major customers and specialist activities where the Group has a
clear competitive advantage. This significant step strengthens the quality of
the Group's earnings and ensures that Brandon Hire Station is positioned to
deliver sustainable value over the medium term.
Housebuilding
Activity was steady but below expectations during the year.
The Group's UK Forks business, which operates principally in housebuilding,
has changed its operating model to improve profitability, including reducing
the physical footprint of the business and the cost base.
This has been achieved while maintaining service levels for national customers
and maintaining the agility to respond to market demand during the
housebuilding market's recovery.
Energy
During the year, the energy market experienced challenges driven by military
conflicts, geopolitics and rising costs.
Our assets include a range of high-performance air compressors, steam
generators, heat exchangers and nitrogen production units, alongside safety
and communication equipment and associated training.
We continued to benefit from several industrial upgrade projects where our
specialised equipment and services were needed to support significant and
highly specialised customer projects.
Further benefits were realised after market entry into new countries in
Africa, South America and the Middle East, with both new and existing
customers, supporting an increase in project activities.
Dividend
The Board is proposing an unchanged final dividend of 28.0p per share (2025:
28.0 per share), which, together with the interim dividend of 11.5p, equates
to a total dividend for the year of 39.5p per share (2025: 39.5p per share).
The dividend will be paid on 5 August 2026 to members registered as of 19 June
2026. While acknowledging the temporary reduction in dividend cover, the Board
recognised the importance of income to our shareholders and believes that
maintaining the dividend reflects our confidence in the Group's future
prospects. Over the medium term, we expect dividend cover to return towards
two times.
Board
This year marks a period of transition in leadership following my appointment
as Chief Executive in February. I have been warmly welcomed into the Group and
have started close work with the teams on accelerating the strategy the Group
had already embarked on under the leadership of Anna Bielby. On behalf of the
Board, I would like to express our sincere thanks to Anna for her significant
contribution and leadership over her tenure. She leaves the business with
clear strategic direction and a solid platform for future growth.
Current trading and outlook
Looking ahead, our priorities are clear: to maintain disciplined performance,
continue to execute our strategy at pace and position Vp for sustainable
long-term growth. I look forward to leading the business through its next
phase and in doing so to deliver value for our stakeholders.
Alice Woodwark
Chief Executive
10 June 2026
FINANCIAL REVIEW
The Group remains in a strong financial position despite reduced profits from
its UK segment. The Group operates comfortably within its finance facilities,
whilst continuing to invest for growth via rental fleet additions and business
acquisitions.
Results
Group revenue decreased by 5.7% to £358.3 million (2025: £380.0 million),
with adjusted profit¹ decreasing by 26.4% to £27.0 million (2025: £36.7
million). The Group incurred a statutory loss before tax of £7.0 million,
compared to a profit of £21.7 million last year.
The return on average capital employed¹ (ROACE) was 11.2% (2025: 14.2%)
Segmental performance
Revenue generated by the Group's UK segment was £287.1 million (2025: £317.6
million), while adjusted operating profit¹ decreased to £24.6 million (2025:
£37.4 million), predominantly due to challenging conditions in the General
Construction market.
Revenue generated by the Group's International segment was £71.2 million
(2025: £62.3 million), while adjusted operating profit¹ increased to £12.6
million (2025: £9.6 million), with CPH, an acquisition made in October 2024,
providing a full year contribution.
Exceptional items
The Group recorded net exceptional items of £30.6 million (2025: £10.9
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.
Exceptional items include £20.9 million of restructuring costs, of which
£20.1 million relates to the transformation of the Brandon Hire Station
division. Included within these costs are £10.9 million of property-related
costs, including dilapidation and other onerous provisions, £7.8 million of
employment-related costs, and £1.4 million of other costs associated with the
transformation including professional fees.
Exceptional items also include £5.1 million of impairments against property,
plant and equipment and right of use assets, £4.8 million of which relates to
the Brandon Hire Station transformation.
In addition to restructuring costs and impairments, exceptional items include
future deferred and earn-out payments associated with last year's CPH
acquisition, which have been treated as post-combination remuneration costs.
Amortisation and impairment of intangible assets
Amortisation and impairment of goodwill, trade names and customer
relationships of £3.4 million (2025: £4.1 million) includes £3.4 million of
amortisation (2025: £3.2 million) and £nil of impairment charges (2025:
£0.9 million).
Earnings per share and dividends
Adjusted basic earnings per share(1) were 54.5 pence (2025: 66.8 pence). On a
statutory basis the Group recorded a basic loss per share of 13.8 pence (2025
earnings: 36.6 pence). 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 be 39.5 pence per share, unchanged from
last year. Dividend cover would be 1.4 times (2025: 1.7 times), based upon
adjusted earnings per share.
Finance costs and funding
Net financial expense of £10.2 million (2025: £10.3 million) includes £6.1
million (2025: £6.6 million) of bank finance costs and £4.1 million (2025:
£3.7 million) of IFRS 16 lease interest.
The Group has £190.5 million of debt capacity (2025: £190.5 million),
comprising two private placements of £65.0 million and £28.0 million, 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 mature in January 2027 and November 2028. In November, the RCF was
extended for a further year and will now mature in November 2028.
Post-year end, in advance of the £65.0 million private placement maturing in
January 2027, the Group increased its RCF from £90 million to £120 million
and entered into an agreement for two new private placements with principal
amounts of €38.0 million and £15.0 million. These private placements both
have five-year terms and will be drawn down in December 2026. Neither the
extension of the RCF nor the new private placements change the Group's
financial covenants.
The Board has evaluated the facilities and covenants on the basis of the FY
2026/27 long-term forecasts, which have been prepared while 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 £61.4
million (2025: £80.7 million). The decrease of £19.3 million was primarily
due the reduction in profit before tax, partially offset by an improvement to
working capital following an outflow in the prior year.
Net debt, excluding the impact of IFRS 16 lease liabilities, increased to
£148.9 million (2025: £138.5 million), with the inflow from operating
activities offset by £26.5 million invested in the Group's rental fleet (net
of disposal proceeds), £9.3 million invested in other assets including
subsidiary acquisitions, £15.6 million of dividends paid to the Group's
shareholders, £19.3 million of lease principal payments, and £1.1 million of
non-cash items including foreign exchange differences.
Pensions
The Group operates defined contribution benefit schemes under which
contributions are determined as a percentage of colleagues' earnings.
The Group also has two defined benefit pension schemes, the Vp Pension Scheme
and a small section of the Railways Pension Scheme. In November 2024, 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 £0.7
million (2025: £0.9 million net surplus).
Taxation
The tax credit of £1.6 million (2025 charge: £7.3 million) was 22.9% of loss
before tax. The effective rate was lower than the standard rate, predominately
due to the impact of expenses not allowable for tax purposes.
Keith Winstanley
Chief Financial Officer
10 June 2026
1 These measures are explained and reconciled in the Alternative Performance
Measures section below.
Consolidated Income Statement
for the year ended 31 March 2026
Note 2026 2025
£000 £000
Revenue 1 358,275 379,957
Cost of sales (276,070) (287,839)
Gross profit 82,205 92,118
Administrative expenses (87,191) (65,416)
Impairment losses on trade receivables (1,791) (1,753)
Impairment of intangible assets - (884)
Profit on disposal of property, plant and equipment 9,970 7,973
Operating profit 3,193 32,038
Net financial expense (10,239) (10,318)
Profit before tax, amortisation and impairment of goodwill, trade names and
customer relationships and exceptional items
26,962 36,672
Amortisation and impairment of goodwill, trade names and customer (3,398) (4,062)
relationships
Exceptional items 2 (30,610) (10,890)
(Loss)/profit before tax (7,046) 21,720
Income tax credit/(expense) 5 1,615 (7,275)
(Loss)/profit after tax (5,431) 14,445
Pence Pence
Basic (loss)/earnings per share 3 (13.8) 36.6
Diluted (loss)/earnings per share 3 (13.8) 36.5
Dividend per 5p ordinary share interim paid and final proposed 6 39.5 39.5
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2026
2026 2025
£000 £000
(Loss) / profit for the year (5,431) 14,445
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension schemes (6) (746)
Tax on items taken to other comprehensive expense 3 342
Items that will not be subsequently reclassified to profit or loss
Foreign exchange translation differences 3,315 (1,886)
Tax on items taken to other comprehensive (income)/expense (369) 247
Net investment hedge (1,563) (22)
Total other comprehensive income/(expense) 1,380 (2,065)
Total comprehensive (expense)/income for the year (4,051) 12,380
Consolidated Statement of Changes in Equity
for the year ended 31 March 2026
2026 2025
£000 £000
(Loss)/profit for the year (5,431) 14,445
Other comprehensive income/(expense) 1,380 (2,065)
Dividends to shareholders (15,605) (15,394)
Net movement relating to shares held by Vp Employee Trust (32) (41)
Share based payments expense 408 433
Change in equity (19,280) (2,622)
Equity at start of year 150,398 153,020
Equity at end of year 131,118 150,398
Consolidated Balance Sheet
as at 31 March 2026
Note 2026 2025
£000 £000
Non-current assets
Property, plant and equipment 263,845 271,058
Intangible assets 27,014 29,398
Right-of-use assets 54,829 57,832
Employee benefits 775 858
Total non-current assets 346,463 359,146
Current assets
Inventories 6,997 9,911
Trade and other receivables 68,272 71,473
Assets held for resale 5,765 -
Income tax receivable 4,493 2,019
Cash and cash equivalents 4 21,269 29,870
Total current assets 106,796 113,273
Total assets 453,259 472,419
Current liabilities
Bank overdraft 4 (13,868) (17,202)
Trade and other payables (57,305) (63,622)
Lease liabilities 4 (18,201) (17,609)
Overseas income tax payable (2,819) (2,275)
Provisions (7,607) -
Interest-bearing loans and borrowings 4 (64,816) -
Total current liabilities (164,616) (100,708)
Non-current liabilities
Interest-bearing loans and borrowings 4 (91,507) (151,165)
Lease liabilities 4 (45,446) (47,815)
Trade and other payables (2,962) (2,608)
Provisions (4,355) (2,937)
Deferred tax liabilities (13,150) (16,788)
Employee benefits (105) -
Total non-current liabilities (157,525) (221,313)
Total liabilities (322,141) (322,021)
Net assets 131,118 150,398
Equity
Issued share capital 2,008 2,008
Capital redemption reserve 301 301
Share premium 16,192 16,192
Hedging reserve (1,585) (22)
Foreign currency translation reserve (611) (3,926)
Retained earnings 114,813 135,845
Total equity 131,118 150,398
Consolidated Statement of Cash Flows for the year ended 31 March 2026
Note 2026 2025
£000 £000
Cash flow from operating activities
(Loss)/profit before taxation (7,046) 21,720
Adjustments for:
Share based payment expense 408 433
Depreciation of property, plant and equipment 44,148 46,464
Impairment of property, plant and equipment 2,321 1,174
Depreciation of right-of-use assets 18,222 18,396
Impairment of right-of-use assets 2,788 4,219
Impairment of intangible assets - 884
Bargain purchase - (1,085)
Contingent remuneration 4,624 1,800
Amortisation of intangible assets 4,200 4,026
Release of arrangement fees - 346
Net financial expense 10,239 10,318
Foreign exchange (244) -
Profit on disposal of property, plant and equipment (9,970) (7,973)
Operating cash flow before changes in working capital and provisions 69,690 100,722
Decrease/(Increase) in inventories 2,958 (363)
Decrease in trade and other receivables 3,653 4,154
Decrease in trade and other payables (9,385) (8,559)
Increase/(decrease) in provisions 9,009 (223)
Cash generated from operations 75,925 95,731
Interest paid (6,115) (6,795)
Interest element of lease liability payments (4,117) (3,698)
Interest received 42 117
Income taxes paid (4,331) (4,618)
Net cash generated from operating activities 61,404 80,737
Proceeds from sale of property, plant and equipment 25,178 23,745
Purchase of property, plant and equipment (59,211) (72,869)
Purchase of intangible assets (689) (800)
Acquisition of business/subsidiary (net of cash acquired) (1,000) (9,945)
Net cash used in investing activities (35,722) (59,869)
Cash flow from financing activities
Purchase of own shares by Employee Trust (32) (41)
Repayment of borrowings (21,000) (38,000)
Drawdown of borrowings 24,670 57,738
Arrangement fees paid - (199)
Principal payment of lease liabilities (19,317) (17,985)
Dividends paid (15,605) (15,394)
Net cash used in financing activities (31,284) (13,881)
Net (decrease)/increase in cash and cash equivalents (5,602) 6,987
Effect of exchange rate fluctuations on cash held 335 (380)
Cash and cash equivalents net of overdrafts at the beginning of the year 12,668 6,061
Cash and cash equivalents net of overdrafts at the end of the year 4 7,401 12,668
Notes to the Financial Statements
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 2026. The accounting policies applied are in line with those applied in
the annual financial statements for the year ended 31 March 2025 and conform
with UK-adopted International Accounting Standards ('UK-adopted IAS'). 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 IAS, this announcement does not itself
contain sufficient information to comply with UK-adopted IAS. The Company
expects to publish full financial statements in June 2026.
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 March 2026 or 2025. Statutory
accounts for 31 March 2025 have been delivered to the registrar of companies,
and those for 31 March 2026 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 2026.
The financial statements were approved by the Board of Directors on 9 June
2026.
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 2026/27 and has been extended to the
period September 2027 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.
In October 2025, the Group's revolving credit facility (RCF) was extended for
a further year to November 2028. The RCF continues to include an additional
£30.0 million uncommitted accordion facility and on 27 April 2026 the Group
committed this facility to extend the RCF to £120.0 million.
As at 31 March 2026, the Group has £190.5 million of debt capacity 2025:
£190.5 million), comprising two private placements of £65.0 million and
£28.0 million, 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 mature in January 2027 and November 2028.
Post-year end, in advance of the £65.0 million private placement maturing in
January 2027, the Group increased its RCF from £90 million to £120 million
and entered into an agreement for two new private placements with principal
amounts of €38.0 million and £15.0 million. These private placements both
have five-year terms and will be drawn down in December 2026. Neither the
extension of the RCF nor the new private placements change the Group's
financial covenants.
1. Business Segments
Adjusted Operating Profit
Revenue
2026 2025 2026 2025
£000 £000 £000 £000
UK 287,088 317,617 24,574 37,405
International 71,187 62,340 12,627 9,585
Total 358,275 379,957 37,201 46,990
Adjusted Operating profit is reconciled to profit before tax in the
Alternative Performance Measures section at the end of this section.
2. Exceptional Items
During the year, those items considered exceptional include:
2026 2025
£000 £000
Restructuring and reorganisations 20,877 3,807
Impairment of property, plant and equipment and right-of-use assets 5,109 5,393
Contingent remuneration for post-combination services 4,624 1,800
Gain on bargain purchase - (1,085)
Acquisition-related costs - 975
Total Exceptional items 30,610 10,890
Current year restructuring and reorganisation costs include branch closure
costs of £20.1 million in the Group's Brandon Hire Station division (2025:
£3.5 million), and system and structural changes required to enable
transformation projects within the Group £0.8m (2025: £0.3 million).
Included within the Brandon Hire Station division costs are £10.9 million of
property-related costs, including dilapidation and other onerous provisions,
£7.8 million of employment-related costs, and £1.4 million of other costs
associated with the transformation including professional fees. Branch closure
costs are deemed exceptional due to their size and nature.
Impairment charges against non-current assets in the current year include
right-of-use assets of £2.8m and property, plant and equipment following
announced branch exits in the Group's Brandon Hire Station division £2.0
million where the recoverable amounts were assessed as £nil.
Impairment charges in the prior year included property, plant and equipment of
£1.2 million and right-of-use assets of £4.2 million which were recognised
against assets held in the Brandon Hire Station cash generating unit (CGU),
where challenges in the General Construction sector impacted performance.
These non-cash impairments were 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.
Contingent remuneration for post-combination services, associated with the CPH
acquisition, is 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 the amounts 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 two financial years, up to the year
ending 31 March 2028. These costs are considered exceptional due to their
nature.
The prior year gain on bargain purchase of £1.1 million related to the
difference between consideration and assets acquired associated with the
acquisition of CPH. This item was considered exceptional due to its
irregularity.
Acquisition-related costs incurred in the prior year were in the process of
acquiring CPH. These costs are considered exceptional due to their
irregularity.
The exceptional items above result in a reduction of £6.3 million (2025:
£2.0 million) in the tax charge.
Exceptional items in the current year are included within cost of sales (£3.7
million) and administrative expenses (£26.9 million) within the consolidated
income statement. In the prior year they were all included within
administrative expenses.
3. Earnings Per Share
The calculation of basic loss per share of (13.75) pence (2025: earnings of
36.59 pence) was based on the loss after tax of £5,431,000 (2025: profit
£14,445,000) and a weighted average number of ordinary shares outstanding
during the year-ended 31 March 2026 of 39,510,000 (2025: 39,482,000),
calculated as follows:
Shares Shares
2026 2025
000s 000s
Issued ordinary shares 40,154 40,154
Effect of own shares held (644) (672)
Weighted average number of ordinary shares 39,510 39,482
The calculation of diluted loss per share of (13.75) pence (2025: earnings of
36.48 pence) was based on loss after tax of £5,431,000 (2025: profit
£14,445,000) and a weighted average number of ordinary shares outstanding
during the year-ended 31 March 2026 of 39,510,000 (2025: 39,594,000),
calculated as follows:
Shares Shares
2026 2025
000s 000s
Weighted average number of ordinary shares 39,510 39,482
Effect of own shares held - 112
Weighted average number of ordinary shares (diluted) 39,510 39,594
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 2025 Cash movements Foreign exchange Non-cash movements As at 31 Mar 2026
£000 £000 £000 £000 £000
Secured loans 151,738 3,670 1,389 - 156,797
Arrangement fees (573) (180) - 279 (474)
Cash and cash equivalents (net of overdrafts) (12,668) 5,602 (335) - (7,401)
Net debt excluding lease liabilities 138,497 9,092 1,054 279 148,922
Lease liabilities 65,424 (23,434) 255 21,402 63,647
Net debt including lease liabilities 203,921 (14,342) 1,309 21,681 212,569
As at 31 March 2026, the Group had £183.0 million (2025: £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
(2025: £7.5 million).
5. Taxation
The taxation credit for the year represents an effective tax rate of 22.9%
(2025: 33.5%). The effective rate was lower than the standard rate,
predominately due to the impact of expenses not allowable for tax purposes.
6. Dividend
The Board has proposed a final dividend of 28.0 pence per share to be paid on
5 August 2026 to shareholders on the register at 19 June 2026. Including the
interim dividend of 11.5 pence per share, this makes a total dividend for the
year of 39.5 pence per share (2025: 39.5 pence per share).
The ex-dividend date will be 18 June 2026 and the last day to elect to
participate in the dividend reinvestment plan will be 3 July 2026.
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 40 to 44 of the
Annual Report and Accounts for the year ended 31 March 2025, a copy of which
is available on the Group's website.
With the exception of Technology and IT resilience and Market and competition,
the Board considers the principal risks and uncertainties as at 31 March 2026
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 frequency and sophistication of cyber-attacks,
alongside the continued digitalisation of operations and a reliance on
technology infrastructure. Market and competition is driven by heightened
geopolitical uncertainty, particularly in the Middle East. A prolonged
conflict could have a more material impact on energy markets and demand
visibility.
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 2026 will be
provided to shareholders before the end of June 2026.
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.
2026 2025
£'000 £'000
(Loss)/profit before tax as per the Income Statement (7,046) 21,720
Amortisation and impairment of goodwill, trade names and customer 3,398 4,062
relationships
Exceptional items 30,610 10,890
Adjusted profit before tax, amortisation, impairment of goodwill, trade names 26,962 36,672
and customer relationships and exceptional items APM ('Adjusted Profit')
Interest 10,239 10,318
Operating profit before amortisation, impairment of goodwill, trade names and 37,201 46,990
customer relationships and exceptional items APM ('Adjusted Operating Profit')
Remove interest on lease liabilities (4,117) (3,699)
Depreciation of property, plant and equipment 44,148 46,464
Amortisation of software 802 848
Adjusted EBITDA APM 78,034 90,603
Add back interest on lease liabilities 4,117 3,699
Depreciation on right-of-use assets 18,222 18,396
Adjusted EBITDA post IFRS 16 APM 100,373 112,698
2026 2025
Pence Pence
Basic (loss)/earnings per share (13.8) 36.6
Impact of amortisation, impairment of intangible assets and exceptional items 68.3 30.2
after tax
Adjusted basic earnings per share APM 54.5 66.8
2026 2025
£'000 £'000
Net debt including lease liabilities 212,569 203,921
Lease liabilities (63,647) (65,424)
Net debt excluding lease liabilities APM 148,922 138,497
Return on Average Capital Employed (ROACE) of 11.2% (2025: 14.2%) 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 IAS 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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