REG-Vp PLC : Interim Results <Origin Href="QuoteRef">VP.L</Origin>

VPAnnouncement

27/11/2014 07:10

Vp plc
("Vp" or the "Group" or the "Company")
Interim Results
Vp plc, the equipment rental specialist, today announces its Interim Results for the six months ended 30 September 2014.
Highlights
 Profit before tax and amortisation increased 27% to 16.2 million (2013: 12.8 million) 
 Revenues of 101.3 million, 11% ahead (2013: 91.3 million) 
 Return on average capital employed increased to 14.9% (2013: 13.9%) 
 Profit margins improved to 16.0% (2013: 14.0%) 
 Capital investment in rental fleet 30% higher than the prior year at 23.9 million 
 Acquisition of the trackside plant and equipment rental business of Balfour Beatty Rail Limited for 5.5 million 
 Interim dividend increased to 5.0 pence per share (2013: 3.6 pence per share) 
 Solid balance sheet with strong operational cash flow 
Jeremy Pilkington, Chairman of Vp plc, commented:
"The Board regards these half year figures as an outstanding set of results and this positive start to the new financial year reflects the continuation of the improving trading conditions which the Group enjoyed towards the end of last year. The trading trajectory into the second half of the current financial year provides us with every confidence that the Group can deliver a very satisfactory result for the year as a whole."
- Ends -

Enquiries:
Vp plc
  
 Jeremy Pilkington, Chairman 
 Tel: +44 (0) 1423 533 405 
jeremypilkington@vpplc.com
  
 Neil Stothard, Group Managing Director 
 Tel: +44 (0) 1423 533 445 
neil.stothard@vpplc.com
  
 Allison Bainbridge, Group Finance Director 
 Tel: +44 (0) 1423 533 445 
allison.bainbridge@vpplc.com
www.vpplc.com
Media enquiries:
Abchurch Communications
  
 Henry Harrison-Topham / Jamie Hooper 
 Tel: +44 (0) 20 7398 7719 
vp@abchurch-group.com
www.abchurch-group.com


CHAIRMAN'S STATEMENT
I am delighted to be able to report another excellent set of interim results.
In the six months to 30 September 2014, profit before tax and amortisation increased by 27% to 16.2 million (2013: 12.8 million) on revenues up by 11% at 101.3 million (2013: 91.3 million). Return on capital employed improved once again to 14.9% (2013: 13.9%) and basic earnings per share rose 22% to 31.36 pence (2013: 25.73 pence).
This is a very positive start to the financial year and reflects the continuation of the improving trading conditions which the Group enjoyed towards the end of last year. Housebuilding continued to be buoyant and pleasingly, we also saw sustained improvement in the general construction market. The key infrastructure sectors of water, electricity transmission and rail experienced some expected, temporary disruption due to the changeover of their long term investment programmes. We are optimistic about the future opportunities that will arise from the new programmes.
During the period, capital investment in our rental fleet was 30% higher than the prior year at 23.9 million as we invested to support strengthening demand. In July 2014, we completed the acquisition of the trackside plant and equipment rental business of Balfour Beatty Rail Limited for a consideration of 5.5 million, which has since been successfully integrated into Torrent Trackside. Borrowings at the period end stood at 65 million (31 March 2014: 53 million).
Your Board has been mindful for some time of a growing imbalance between the scale of the interim and final dividend distributions. We are therefore declaring an interim dividend of 5.0 pence per share (2013: 3.6 pence per share), both to address the historic imbalance referred to above but also to reflect this excellent set of results. This rate of increase should not be taken as indicative of the likely increase for the year as a whole. The interim dividend is payable on 2 January 2015 to shareholders on the register as at 5 December 2014.

Review of Operations
Groundforce
Groundforce delivered another solid result with operating profits 7% ahead at 5.0 million (2013: 4.6 million) on revenues up 8% at 22.6 million (2013: 20.8 million).
In the UK, the division has again benefitted from infrastructure and major civil engineering projects such as Crossrail. We anticipate some slow down on water activity as AMP5 draws to a close in March 2015, but we expect continuing demand from the housebuilding, construction and transmission sectors to more than compensate. We have seen major civil engineering activity spread out from the South East to the wider UK market and we expect this positive trend to continue. In Europe, Groundforce has had a satisfactory first half and continues to build momentum.
UK Forks
UK Forks delivered an outstanding result with profits up by 54% to 2.3 million (2013: 1.5 million), on revenues ahead by just under 9% at 9.1 million (2013: 8.4 million). Housebuilding remained the most buoyant sector for UK Forks but it was also very pleasing to finally see some sustained growth in demand from the general construction market.
Our continuing ability to demonstrate to our customers the commercial value of superior service and product support enabled us to convert these opportunities into profitable growth. We have continued to invest strongly in the business with rental fleet additions of 5.2 million (2013: 3.8 million) in the first half and we remain very positive about the prospects for UK Forks.
Airpac Bukom
Airpac Bukom's profits more than doubled in the period to 1.7 million (2013: 0.7 million), albeit compared with a low base last year. Revenues grew by 16% to 11.2 million (2013: 9.6 million).
The improvement in trading came primarily from the anticipated uplift in Liquefied Natural Gas ("LNG") related work in South East Asia and Australia. Airpac Bukom's primary market of well testing has experienced some volatility. Conflict zones have made operations in certain regions of the world problematic and the recent softness in the oil price has also not been helpful. Despite this background, the division has continued to make good progress in the Americas and the Middle East/North Africa regions. Elsewhere, Airpac Bukom continues to expand its product capability and geographical reach in response to customer requirements. The business remains focussed on growth from its established international hub network, in support of well test, rig maintenance and LNG contracts in particular.
Torrent Trackside
Torrent Trackside increased revenues to 13.0 million (2013: 10.6 million) although profits slipped back marginally to 1.3 million (2013: 1.5 million). During the period, Torrent acquired the trackside plant and equipment rental activity of Balfour Beatty Rail Limited for a cash consideration of 5.5 million. A combination of investment in enhanced operational capability and the financial impact of integrating the new acquisition have seen margins fall back temporarily. Network Rail's new five year investment programme (CP5), which started in April 2014, is now gaining momentum and the rail infrastructure as a whole continues to receive significant capital investment. Torrent is in an excellent position to benefit from these upgrade programmes and we anticipate good progress going forward.
TPA
TPA profits reduced to 2.0 million (2013: 2.7 million) on the back of reduced revenues of 9.3 million (2013: 9.8 million). In the UK, drier weather, changes to the structure of transmission contracts and over-capacity led to margin pressure. Further investment in plastic panels is being made in order to increase the versatility of TPA's offering but we expect that these challenging trading conditions in the UK will extend into the second half of the year. In contrast, Europe continued to enjoy much better trading as demand from the transmission and wind sectors in particular, held up well.
Hire Station
Hire Station delivered an outstanding performance with profits up 78% to 4.8 million (2013: 2.7 million) on revenues up 13% at 36.1 million (2013: 31.9 million). Revenue growth was supported by fleet investment of 8.8 million (2013: 7.9 million) and improved product selection and availability. The Tools business in particular benefitted from improved demand from general construction customers.
All three elements of the business; Tools, ESS Safeforce and MEP, reported increased profits. Hire Station's sustained focus on the quality of each element of the hiring process (availability, delivery and reliability) is paying dividends in a market where customer discernment on the back of higher activity levels is playing a more prominent role in procurement decisions.
Prospects for the division remain very positive for the remainder of the financial year.
Outlook
We regard these half year figures as an outstanding set of results and the trading trajectory into the second half of the year gives us every confidence that the Group can deliver a very satisfactory result for the year as a whole.
Jeremy Pilkington
Chairman
27 November 2014
Condensed Consolidated Income Statement
For the period ended 30 September 2014
  
Note
Six months to
30 Sep 2014
  
 Six months to
30 Sep 2013  
  
 Full year to
31 Mar 2014  
  
  
(unaudited)
  
 (unaudited) 
  
 (audited) 
  
  
000
  
 000 
  
 000 
  
Revenue
3
101,328
  
 91,253 
  
 183,064 
  
 Cost of sales 
(70,916)
  
 (64,335) 
  
 (133,470) 
  
Gross profit
30,412
  
 26,918 
  
 49,594 
  
 Administrative expenses 
(13,968)
  
 (13,720) 
  
 (28,883) 
  
  
  
  
  
  
  
Operating profit
3
16,444
  
 13,198 
  
 20,711 
  
 Net financial expenses 
(927)
  
 (931) 
  
 (1,778) 
  
  
  
  
  
  
  
 Profit before amortisation and taxation 
16,235
  
 12,794 
  
 20,053 
  
 Amortisation of intangibles 
(718)
  
 (527) 
  
 (1,120) 
  
  
  
  
  
  
  
Profit before taxation
15,517
  
 12,267 
  
 18,933 
  
 Income tax expense 
4
(3,284)
  
 (2,206) 
  
 (3,238) 
  
Net profit for the period
12,233
  
 10,061 
  
 15,695 
  
  
  
  
  
  
  
 Basic earnings per share 
7
31.36p
  
 25.73p 
  
 39.78p 
  
  
  
  
  
  
  
 Diluted earnings per share 
7
28.49p
  
 23.55p 
  
 36.31p 
  
  
  
  
  
  
  
 Dividend per share 
8
5.00p
  
 3.60p 
  
 14.00p 
  
  
  
  
  
  
  
 Interim dividends proposed / paid (000) 
1,945
  
 1,442 
  
 1,442 
  
 Final dividend paid (000) 
4,039
  
 3,520 
  
 3,520 
  
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 September 2014
  
Six months to
  
 Six months to 
  
 Full year to 
  
30 Sep 2014
  
 30 Sep 2013 
  
 31 Mar 2014 
  
(unaudited)
  
 (unaudited) 
  
 (audited) 
  
000
  
 000 
  
 000

  
Profit for the period
12,233
  
 10,061 
  
 15,695 
Other comprehensive income:
  
  
  
  
Items that will not be reclassified to profit or loss
Actuarial gains on defined benefit pension scheme 
-
  
 - 
  
 233 
 Tax on items taken direct to equity 
-
  
 - 
  
 (53) 
 Impact of tax rate change 
-
  
 (86) 
  
 (118) 
 Foreign exchange translation difference 
(532)
  
 (100) 
  
 (181) 
Items that may be subsequently reclassified to profit or loss
  
  
  
  
 Effective portion of changes in fair value of cash flow hedges 
(165)
  
 480 
  
 704  
  
  
  
  
Other comprehensive income
(697)
  
 294 
  
 585 
  
  
  
  
Total comprehensive income for the period
11,536
  
 10,355 
  
 16,280 
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2014
  
Six months to
  
 Six months to 
  
 Full year to 
  
30 Sep 2014
  
 30 Sep 2013 
  
 31 Mar 2014 
  
(unaudited)
  
 (unaudited) 
  
 (audited) 
  
000

  
  
 000 
  
 000 
 Total comprehensive income for the period 
11,536
  
 10,355 
  
 16,280 
 Tax movements to equity 
667
  
 1,383 
  
 2,876 
 Impact of tax rate change 
-
  
 (80) 
  
 (274) 
 Share option charge in the period 
823
  
 904 
  
 1,735 
 Net movement relating to shares held by Vp Employee Trust 
(7,122)
  
 (613) 
  
 (8,593) 
 Dividends to shareholders 
(4,039)
  
 (3,520) 
  
 (4,962) 
Change in equity during the period
1,865
  
 8,429 
  
 7,062 
 Equity at the start of the period 
107,984
  
 100,922 
  
 100,922 
Equity at the end of the period
109,849
  
 109,351 
  
 107,984 
Condensed Consolidated Balance Sheet
At 30 September 2014
  


Note
30 Sep 2014
  
 

 31 Mar 2014 
  
 

 30 Sep 2013 
  
(unaudited)
  
 (audited) 
  
 (unaudited) 
  
000
  
 000 
  
 000 
Non-current assets
  
  
  
  
 Property, plant and equipment 
5
135,758
  
 124,834 
  
 117,883 
 Goodwill 
35,846
  
 35,846 
  
 35,575 
 Intangible assets 
6
8,514
  
 5,505 
  
 6,053 
 Employee benefits 
877
  
 689 
  
 268 
Total non-current assets
180,995
  
 166,874 
  
 159,779 
Current assets
  
  
  
  
 Inventories 
5,655
  
 5,352 
  
 5,508 
 Trade and other receivables 
44,445
  
 38,356 
  
 45,139 
 Cash and cash equivalents 
7,582
  
 8,978 
  
 4,858 
Total current assets
57,682
  
 52,686 
  
 55,505 
Total assets
238,677
  
 219,560 
  
 215,284 
Current liabilities
  
  
  
  
 Interest bearing loans and borrowings 
(3)
  
 (17) 
  
 (50) 
 Income tax payable 
(2,816)
  
 (632) 
  
 (2,565) 
 Trade and other payables 
(48,933)
  
 (44,396) 
  
 (37,561) 
Total current liabilities
(51,752)
  
 (45,045) 
  
 (40,176) 
Non-current liabilities
  
  
  
  
 Interest bearing loans and borrowings 
(73,000)
  
 (62,000) 
  
 (61,003) 
 Deferred tax liabilities 
(4,076)
  
 (4,531) 
  
 (4,754) 
Total non-current liabilities
(77,076)
  
 (66,531) 
  
 (65,757) 
Total liabilities
(128,828)
  
 (111,576) 
  
 (105,933) 
  
  
  
  
  
Net assets
109,849
  
 107,984 
  
 109,351 
  
  
  
  
  
Equity
  
  
  
  
 Issued capital 
2,008
  
 2,008 
  
 2,008 
 Capital redemption reserve 
301
  
 301 
  
 301 
 Share premium 
16,192
  
 16,192 
  
 16,192 
 Hedging reserve 
(255)
  
 (90) 
  
 (314) 
 Retained earnings 
91,576
  
 89,546 
  
 91,137 
Total equity attributable to equity
holders of parent
109,822
  
 107,957 
  
 109,324 
  
  
  
  
  
Non-controlling interest
27
  
 27 
  
 27 
Total equity
109,849
  
 107,984 
  
 109,351 


Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2014

  
Note
Six months to
  
 Six months to 
  
 Full year to 
  
  
30 Sep 2014
  
 30 Sep 2013 
  
 31 Mar 2014 
  
(unaudited)
  
 (unaudited) 
  
 (audited) 
  
000
  
 000 
  
 000 
Cash flows from operating activities
Profit before taxation  
15,517
  
 12,267 
  
 18,933 
 Adjustment for: 
  
  
  
  
 Pension fund contributions in excess of service cost 
(188)
  
 (188) 
  
 (376) 
 Share based payment charges 
823
  
 904 
  
 1,735 
 Depreciation 
5
12,073
  
 10,833 
  
 22,507 
 Amortisation of intangibles 
718
  
 527 
  
 1,120 
 Net financial expense 
927
  
 931 
  
 1,778 
 Profit on sale of property, plant and equipment 
(2,102)
  
 (1,305) 
  
 (2,862) 
Operating cash flow before changes in working capital and provisions
27,768
  
 23,969 
  
 42,835 
 (Increase)/decrease in inventories 
(14)
  
 208 
  
 364 
 Increase in trade and other receivables 
(6,089)
  
 (10,279) 
  
 (3,525) 
 Increase/(decrease) in trade and other payables 
3,121
  
 (300) 
  
 7,581 
Cash generated from operations
24,786
  
 13,598 
  
 47,255 
 Interest paid 
(923)
  
 (990) 
  
 (1,848) 
 Interest element of finance lease rental payments 
(1)
  
 - 
  
 (5) 
 Interest received 
4
  
 7 
  
 12 
 Income tax paid 
(887)
  
 (1,749) 
  
 (3,949) 
Net cash flows from operating activities
22,979
  
 10,866 
  
 41,465 
Cash flows from investing activities
  
  
  
  
 Proceeds from sale of property, plant and equipment 
5,757
  
 4,144 
  
 8,554 
 Purchase of property, plant and equipment 
(24,346)
  
 (17,157) 
  
 (39,535) 
 Acquisition of businesses and subsidiaries (net of cash and overdrafts) 
(5,405)
  
 (4,503) 
  
 (4,498) 
Net cash flows from investing activities
(23,994)
  
 (17,516) 
  
 (35,479) 
  
  
  
  
  
Cash flows from financing activities
  
  
  
  
 Purchase of own shares by Employee Trust 
(7,122)
  
 (613) 
  
 (8,593) 
 Repayment of loans 
(9,000)
  
 (54,000) 
  
 (54,000) 
 New loans 
20,000
  
 61,000 
  
 62,000 
 Payment of hire purchase and finance lease liabilities 
(14)
  
 - 
  
 (36) 
 Dividends paid 
8
(4,039)
  
 (3,520) 
  
 (4,962) 
Net cash flows from financing activities
(175)
  
 2,867 
  
 (5,591) 
  
  
  
  
  
 Net (decrease)/increase in cash and cash equivalents 
(1,190)
  
 (3,783) 
  
 395 
 Effect of exchange rate fluctuations on cash held 
(206)
  
 (71) 
  
 (129) 
 Cash and cash equivalents at beginning of period 
8,978
  
 8,712 
  
 8,712 
Cash and cash equivalents at end of period
9
7,582
  
 4,858 
  
 8,978 

Notes to the Condensed Financial Statements
1. Basis of Preparation
Vp plc (the "Company") is a company incorporated and domiciled in the United Kingdom. The Condensed Consolidated Interim Financial Statements of the Company for the half year ended 30 September 2014 comprise the financial information of the Company and its subsidiaries (together referred to as the "Group").
This interim announcement has been prepared in accordance with the Disclosure and Transparency Rules of the UK Financial Services Authority and the requirements of IAS34 ("Interim Financial Reporting") as adopted by the EU. The accounting policies applied are consistent for all periods presented and are in line with those applied in the annual financial statements for the year ended 31 March 2014, which were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the EU. There are no new IFRSs or IFRICs that are effective for the first time in the current year which are expected to have a significant impact on the Group.
The interim announcement was approved by the Board of Directors on 26 November 2014.
The Condensed Consolidated Interim Financial Statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
The comparative figures for the financial year ended 31 March 2014 are extracted from the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
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 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 2014.
The Group continues to be in a healthy financial position. Since the year end net debt has increased by 12.4 million to 65.4 million. The Group's total banking facilities are 90 million, including an overdraft facility. The Board has evaluated these facilities and the associated covenants on the basis of current forecasts, taking into account the current economic climate and an appropriate level of sensitivity analysis. On this basis, the Directors have a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future and to manage its business risks. For this reason the going concern basis has been adopted in the preparation of these condensed consolidated interim financial statements.
2. Risks and Uncertainties
The principal risks and uncertainties facing the Group and the ways in which they are mitigated are described on page 21 of the 31 March 2014 Annual Report and Accounts. The risks and uncertainties remain the same for this interim financial report.
3.  Summarised Segmental Analysis
Revenue
Operating Profit
Sept 2014
  
 Sept 2013 
  
Sept 2014
 Sept 2013 
  
  
  
  
  
  
000
  
 000 
  
000
 000 
  
Groundforce
22,566
  
 20,818 
  
4,962
 4,628 
  
UK Forks
9,128
  
 8,408 
  
2,343
 1,518 
  
Airpac Bukom
11,228
  
 9,646 
  
1,713
 679 
  
Torrent Trackside
13,035
  
 10,633 
  
1,300
 1,487 
  
TPA
9,288
  
 9,826 
  
2,021
 2,707 
  
Hire Station
36,083
  
 31,922 
  
4,823
 2,706 
  
101,328
  
 91,253 
  
17,162
 13,725 
  
Amortisation
  
  
  
(718)
 (527) 
  
  
  
  
16,444
 13,198 
  
4. Income Tax
The effective tax rate is 21.2% in the period to 30 September 2014 (30 September 2013: 18.0%). The effective rate for the period reflects the current standard tax rate of 21%, as adjusted for estimated permanent differences for tax purposes offset by gains covered by exemptions. The prior period effective tax rate reflects an underlying tax rate of 22.4% based on a standard tax rate of 23% as adjusted for permanent differences for tax purposes and gains covered by exemptions. However, in addition, in the prior period there was a release of 0.5 million (4.4%) from the deferred tax balance as a result of the enacted changes in the future UK corporation tax rate from 23% to 20% in future periods.
5. Property, Plant and Equipment
  
Sept 2014
 Sept 2013 
 Mar 2014 
  
000
 000 
 000 
 Opening carrying amount 
124,834
 110,577 
 110,577 
 Additions 
25,587
 19,542 
 41,068 
 Acquisitions 
1,389
 1,458 
 1,433 
 Depreciation 
(12,073)
 (10,833) 
 (22,507) 
 Disposals 
(3,655)
 (2,839) 
 (5,692) 
 Effect of movements in exchange rates 
(324)
 (22) 
 (45) 
 Closing carrying amount 
135,758
 117,883 
 124,834 
The value of capital commitments at 30 September 2014 was 7,344,000 (31 March 2014 3,167,000).
6. Intangibles
On 28 July 2014 Torrent Trackside Limited acquired the business and assets of the trackside plant and equipment rental activity of Balfour Beatty Rail Limited for 5.4 million. The fair value of assets acquired was 5.4 million including fixed assets of 1.4 million, stock of 0.3 million and an intangible relating to a supply agreement of 3.7 million.
7. Earnings Per Share
Earnings per share have been calculated on 39,010,574 shares (2013: 39,104,381 shares) being the weighted average number of shares in issue during the period. Diluted earnings per share have been calculated on 42,930,653 shares (2013: 42,730,495 shares) adjusted to reflect conversion of all potentially dilutive ordinary shares. Basic earnings per share before the amortisation of intangibles was 32.81 pence (2013: 26.77 pence) and was based on an after tax add back of 567,000 (2013: 406,000) in respect of the amortisation of intangibles. Diluted earnings per share before amortisation of intangibles was 29.82 pence (2013: 24.49 pence).
8. Dividends
The Directors have declared an interim dividend of 5.0 pence (2013: 3.6 pence) per share payable on 2 January 2015 to shareholders on the register at 5 December 2014. The dividend proposed at the year-end was subsequently approved at the AGM in July 2014 and 4,039,000 was paid in the period (2013: 3,520,000 was paid). 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
  
As at
  
1 Apr 14
  
Flow
  
30 Sep 14
  
000
  
000
  
000
 

 Cash and cash equivalents 
 

 8,978 
  
 

 (1,396) 
 

  
 

 7,582 
 

 Revolving credit facilities  
 

 (62,000) 
  
 

 (11,000) 
  
 

 (73,000) 
 

 Finance leases and hire purchases 
 

 (17) 
  
 

 14 
  
 

 (3) 
  
 

 (53,039) 
  
 

 (12,382) 
  
 

 (65,421) 
The Group's bank facilities comprise a 35 million committed three year revolving credit facility which expires in May 2016, a 30 million committed four and a half year revolving credit facility expiring in October 2017 and a further 20 million committed revolving facility taken out in June 2014 which also expires in October 2017, together with overdraft facilities totalling 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. Forward Looking Statements
The Chairman's Statement 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. 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.
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 IAS 34 Interim Financial Reporting as adopted by the EU;
 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
27 November 2014
The Board
The Directors who served during the six months to 30 September 2014 were:
Jeremy Pilkington (Chairman)
Neil Stothard
Allison Bainbridge
Steve Rogers
Phil White

Independent review report to Vp plc
Report on the Condensed Consolidated Interim Financial Statements
Our conclusion
We have reviewed the Condensed Consolidated Interim Financial Statements, defined below, in the Interim Report of Vp plc for the six months ended 30 September 2014. Based on our review, nothing has come to our attention that causes us to believe that the Condensed Consolidated Interim Financial Statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. This conclusion is to be read in the context of what we say in the remainder of this report.
What we have reviewed
The condensed consolidated interim financial statements, which are prepared by Vp plc, comprise:
the Condensed Consolidated Balance Sheet as at 30 September 2014;
the Condensed Consolidated Income Statement and Statement of Comprehensive Income for the period then ended;
the Condensed Consolidated Statement of Cash Flows for the period then ended;
the Condensed Consolidated Statement of Changes in Equity for the period then ended; and
the explanatory notes to the Condensed Consolidated interim financial statements.
As disclosed in note 1, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
The Condensed Consolidated Interim Financial Statements included in the Interim Report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
What a review of Condensed Consolidated financial statements involves
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Condensed Consolidated Interim Financial Statements.
Responsibilities for the Condensed Consolidated Interim Financial Statements and the review
Our responsibilities and those of the directors
The Interim Report, including the Condensed Consolidated Interim Financial Statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Interim Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express to the company a conclusion on the Condensed Consolidated Interim Financial Statements in the Interim Report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
The maintenance and integrity of the Vp Plc website is the responsibility of the directors; the work carried out by us does not involve consideration of these matters and, accordingly, we accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
PricewaterhouseCoopers LLP
Chartered Accountants
Leeds
27 November 2014
- Ends -


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vp PLC via Globenewswire
HUG#1874637