Vp plc's FY profit drops on UK market weakness, maintains dividend
Vp plc's FY profit drops on UK market weakness, maintains dividend
Overview
UK equipment rental firm's FY revenue fell 5.7% amid challenging construction markets
Adjusted EPS declined 18.4% as profit dropped; company posted statutory loss after restructuring
Company maintained full-year dividend at 39.5p, citing confidence in long-term prospects
Outlook
Vp expects FY27 trading to be in line with current market expectations
Company anticipates improved year-on-year trading in FY27, aided by Brandon Hire Station restructure
Company's analyst consensus for FY27: revenue £352.1 mln, adjusted profit £33.1 mln
Result Drivers
UK MARKET WEAKNESS - Co said challenging conditions in UK general construction and housebuilding weighed on revenue and profit
BRANDON HIRE STATION RESTRUCTURE - Restructuring led to exceptional costs but is expected to improve efficiency and margins
INTERNATIONAL SEGMENT GROWTH - International profits rose 30% on strategic investment and acquisition contribution
Company press release: ID:nRSJ6499Ha
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| GBP 358.30 mln |
|
FY EPS |
| -GBP 0.14 |
|
FY Profit After Tax |
| -GBP 5.43 mln |
|
FY Adjusted EBITDA |
| GBP 78 mln |
|
FY Adjusted Net Debt |
| GBP 148.90 mln |
|
FY Gross Profit |
| GBP 82.21 mln |
|
FY Pretax Profit |
| -GBP 7 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for VP PLC is GBp681.00, about 42.5% above its June 9 closing price of GBp478.00
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)