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800p -20.0  -2.4%

Last Trade - 18/10/19

Sector
Industrials
Size
Small Cap
Market Cap £321.2m
Enterprise Value £489.4m
Revenue £382.8m
Position in Universe 676th / 1855

Vp PLC: Interim Results

Wed 25th November, 2015 7:00am
25 November 2015 
 
 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 2015. 
 
 Highlights 
 
* Profit before tax and amortisation increased 6% to £17.2 million (2014:
£16.2 million) 
* Revenues ahead 4% at £105.1 million (2014: £101.3 million) 
* Significant improvement in return on capital employed to 16.1% (2014: 14.9%)

* Interim dividend increased 7% to 5.35 pence per share (2014: 5.0 pence per
share) 
* Earnings per share pre-amortisation increased 7% to 35.14 pence (2014: 32.81
pence) 

 
 Jeremy Pilkington, Chairman of Vp plc, commented: "This has been another year
of solid progress for the Group, achieved against a more subdued economic
background.  Revenues, profits, earnings per share, return on capital and
dividend all moved ahead.  Once again the Group has demonstrated its strength
through diversity in the quality of these results." 
 
 "The Board believes that the Group will deliver further value growth for our
shareholders for the year as a whole." 
 
 - Ends - 
 
 Enquiries: 
 
  Vp plc                                                                                                                                    
  Jeremy Pilkington, Chairman                                                                                                          Tel: +44 (0) 1423 533 400   
  jeremypilkington@vpplc.com                                                                                                                                      
  Neil Stothard, Group Managing Director                                                                                               Tel: +44 (0) 1423 533 400   
  neil.stothard@vpplc.com                                                                                                                                         
  Allison Bainbridge, Group Finance Director                                                                                  Tel: +44 (0) 1423 533 400   
  allison.bainbridge@vpplc.com                                                                                                         www.vpplc.com               
                                                                                                                                                              
  Media enquiries:                                                                                                                                                      
  Abchurch Communications                                                                                                                                         
  Jamie Hooper / Alex Shaw                                                                                                             Tel: +44 (0) 20 7398 7719   
  vp@abchurch-group.com                                                                                                                www.abchurch-group.com      
     
     
 CHAIRMAN'S STATEMENT 
 
 I am very pleased to report on a period of further solid progress for the
Group. 
 
 In the six months to 30 September 2015, profit before tax and amortisation
rose 6% to £17.2 million (2014: £16.2 million) on revenues 4% ahead at
£105.1 million (2014: £101.3 million).  Earnings per share pre-amortisation
increased 7% to 35.14 pence (2014: 32.81 pence) and very pleasingly, return on
capital employed improved significantly to 16.1% (2014: 14.9%) once again
demonstrating the success of our continuing focus on enhancing the quality of
earnings. 
 
 Overall, this is a very satisfactory set of results particularly against the
more subdued economic background witnessed during 2015.  As we foresaw at the
end of the last financial year, challenges have existed in both the oil and
gas and transmission markets, but stable demand elsewhere has more than
compensated. 
 
 Capital investment on fleet in the period was broadly in line with prior year
at £23.4 million and borrowings at the period end stood at £81.8 million (1
April 2015: £66.8 million).  
 
 Reflecting the strength of these results, your Board is declaring an interim
dividend of 5.35 pence per share (2014: 5.0 pence per share), payable on 8
January 2016 to shareholders on the register as at 4 December 2015.  
 
 Post the period end, on 2 November 2015, the Group acquired Test and
Measurement Limited for a consideration of £3.95 million.  This testing and
calibration business will be operated as a new business stream within Hire
Station by ESS Safeforce.  Considerable synergies exist between the two
businesses and we are very positive about the growth opportunities that this
business will provide. 
 
     
 Review of Operations 
 
 UK Forks 
 
 UK Forks posted profits of £2.9 million, up 25% (2014: £2.3 million) on
revenues 7% ahead at £9.8 million (2014: £9.1 million).  
 
 Steady demand from the housebuilding sector enabled us to continue to secure
opportunities based upon our demonstrably superior levels of customer
service.  Elsewhere, non-residential construction activity was stable. 
Refreshment of the rental fleet also delivered useful profit on disposal of
older assets.  We anticipate a sustained contribution from the housebuilding
sector and believe that there is upside to be enjoyed from the general
construction sector. 
 
 Groundforce 
 
 Groundforce delivered another very strong set of results with operating
profits 12% ahead at £5.6 million (2014: £5.0 million).  Revenues rose 9%
to £24.5 million (2014: £22.6 million). 
 
 Whilst Groundforce experienced some weakening in demand during the transition
to the water industry's new five year asset management programme (AMP6),
housebuilding and inner city basement propping schemes remained strong.  We
look forward to the new AMP6 contracts starting to come on stream later in the
year. 
 
 Airpac Bukom 
 
 Given Airpac Bukom's significant exposure to the oil and gas exploration and
development sector, it was impossible for Airpac to escape the impact of a
halving in the price of oil over the last 12 months.  Whilst revenues were
down 25% at £8.5 million (2014: £11.2 million) the business successfully
mitigated some of the impact of this reduction in revenue to deliver profits
of £1.0 million (2014: £1.7 million). 
 
 However, there are positives.   Liquefied Natural Gas related work in South
East Asia and Australia continued to make a strong contribution to divisional
results and elsewhere progress is being made to take the fullest advantage of
all opportunities.  
 
 The industry as a whole is now having to come to terms with the implications
of a perhaps prolonged period of low oil prices.  We are responding to these
challenges by demonstrating a nimble and proactive approach to the energy
markets whilst ensuring that our cost base is appropriate. 
 
 Hire Station 
 
 Hire Station delivered an outstanding performance with profits up 27% to
£6.1 million (2014: £4.8 million) on revenues up 9% to £39.2 million (2014:
£36.1 million).  All three elements of the business; Tools, ESS Safeforce
and MEP, contributed to this excellent result. 
 
 Our long term focus on the quality and availability of rental assets
continues to yield benefits in terms of both customer recruitment and
satisfaction and also business profitability.  Executing the basics to a high
standard remains the focus for the business.  Growth opportunities exist for
all three elements of Hire Station and we anticipate the division making
further tangible progress in the second half. 
 
 Torrent Trackside 
 
 Torrent Trackside had a good first half with profits increasing to £1.7
million (2014: £1.3 million) as revenues increased by 21% to £15.7 million
(2014: £13.0 million).  
 
 The acquisition of the trackside plant and equipment rental business from
Balfour Beatty Rail Limited in July 2014 has been successfully integrated and
made a useful contribution in the period.  The new Network Rail CP5 programme
is now gaining momentum. 
 
 There appears to be regular speculation about the future structure of the
rail industry, but despite this background of uncertainty we remain positive
about the opportunities offered by this sector and confident in our ability to
respond to whatever structural changes may result. 
 
 TPA 
 
 TPA profits fell back to £0.9 million (2014: £2.0 million), as revenues
reduced by 21% to £7.4 million (2014: £9.3 million). 
 
 In the UK, the anticipated improvement in demand from the transmission sector
did not occur.  This, combined with drier weather, led to excess capacity in
the market and created a shortfall in demand for our products.  The
experience was similar in mainland Europe, with lack of transmission work and
a quieter renewable energy segment. 
 
 The programme of works in the second half and into next year, both in the UK
and in Europe, looks more supportive and new product introductions are
starting to make a useful contribution.   
 
 Outlook 
 
 This period has once again demonstrated the Group's ability to deliver good
results even when some of our markets are performing at less than full
capacity.  This continues the excellent progress delivered over previous
years. 
 
 We see opportunity across all divisional segments in Vp and will continue to
deploy our robust financial strength to deliver further value growth to our
shareholders. 
 
 The Board has every reason to believe that the Group will be in a position to
deliver a very satisfactory result for the year as a whole. 
 
 Jeremy Pilkington 
 Chairman 
 25 November 2015 
       
       
        
       
 Condensed Consolidated Income Statement 
 For the period ended 30 September 2015 
 
                                            Note    Six months to         Six months to 30 Sep 2014         Full year to 31 Mar 2015        
                                                     30 Sep 2015                                                                                
                                                   (unaudited)           (unaudited)                       (audited)                       
                                                   £000                 £000                             £000                           
  Revenue                                    3       105,118               101,328                           205,602                         
  Cost of sales                                     (73,589)              (70,916)                          (148,773)                       
  Gross profit                                      31,529                30,412                            56,829                          
  Administrative expenses                           (14,210)              (13,968)                          (29,733)                        
                                                                                                                                        
  Operating profit                           3       17,319                16,444                            27,096                          
  Net financial expenses                            (991)                 (927)                             (2,023)                         
                                                                                                                                        
  Profit before amortisation and taxation           17,189                16,235                            26,757                          
  Amortisation of intangibles                       (861)                 (718)                             (1,684)                         
                                                                                                                                        
  Profit before taxation                            16,328                15,517                            25,073                          
  Income tax expense                           4    (3,351)               (3,284)                           (5,202)                         
  Net profit for the period                         12,977                12,233                            19,871                          
                                                                                                                                        
  Basic earnings per share                   7       33.37p                31.36p                            51.03p                          
                                                                                                                                        
  Diluted earnings per share                 7       31.23p                28.49p                            47.01p                          
                                                                                                                                        
  Dividend per share                         8       5.35p                 5.00p                             16.50p                          
                                                                                                                                        
                                                                                                                                        
                                                                                                                                        
      
       
      
      
 
 Condensed Consolidated Statement of Comprehensive Income 
 For the period ended 30 September 2015 
 
                                                                   Six months to         Six months to         Full year to   
                                                                   30 Sep 2015           30 Sep 2014           31 Mar 2015    
                                                                   (unaudited)           (unaudited)           (audited)      
                                                                   £000                 £000                 £000          
  Profit for the period                                             12,977                12,233                19,871         
  Other comprehensive income:                                                                                               
  Items that will not be reclassified to profit or loss             -                     -                     (55)           
  Actuarial gains on defined benefit pension scheme                                                                              
  Tax on items taken direct to equity                              -                     -                     12             
  Foreign exchange translation difference                          (153)                 (532)                 (1,028)        
  Items that may be subsequently reclassified to profit or loss                                                             
  Effective portion of changes in fair value of cash flow hedges    552                   (165)                 (1,011)        
                                                                                                                           
  Other comprehensive income                                        399                   (697)                 (2,082)        
                                                                                                                           
  Total comprehensive income for the period                         13,376                11,536                17,789         
       
      
            
      
 
 Condensed Consolidated Statement of Changes in Equity 
 For the period ended 30 September 2015 
 
                                                              Six months to         Six months to         Full year to   
                                                              30 Sep 2015           30 Sep 2014           31 Mar 2015    
                                                              (unaudited)           (unaudited)           (audited)      
                                                              £000                 £000                 £000          
  Total comprehensive income for the period                    13,376                11,536                17,789         
  Tax movements to equity                                      1,058                 667                   1,145          
  Share option charge in the period                            1,012                 823                   1,894          
  Net movement relating to shares held by Vp Employee Trust    (8,360)               (7,122)               (11,059)       
  Dividends to shareholders                                    (4,490)               (4,039)               (5,986)        
  Change in equity during the period                           2,596                 1,865                 3,783          
  Equity at the start of the period                            111,767               107,984               107,984        
  Equity at the end of the period                              114,363               109,849               111,767        
 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 2015 
 
                                          Note    30 Sep 2015         31 Mar 2015         30 Sep 2014   
                                                 (unaudited)         (audited)           (unaudited)   
                                                 £000               £000               £000         
  Non-current assets                                                                                 
  Property, plant and equipment              5    155,906             147,817             135,758       
  Goodwill                                        35,846              35,846              35,846        
  Intangible assets                        6       6,687               7,548               8,514         
  Employee benefits                               1,231               1,043               877           
  Total non-current assets                        199,670             192,254             180,995       
  Current assets                                                                                     
  Inventories                                     4,981               6,495               5,655         
  Trade and other receivables                     44,039              41,102              44,445        
  Cash and cash equivalents                       2,215               5,236               7,582         
  Total current assets                            51,235              52,833              57,682        
  Total assets                                    250,905             245,087             238,677       
  Current liabilities                                                                                
  Interest bearing loans and borrowings           -                   -                   (3)           
  Income tax payable                              (1,567)             (1,948)             (2,816)       
  Trade and other payables                        (46,623)            (54,988)            (48,933)      
  Total current liabilities                       (48,190)            (56,936)            (51,752)      
  Non-current liabilities                                                                            
  Interest bearing loans and borrowings           (84,000)            (72,000)            (73,000)      
  Deferred tax liabilities                        (4,352)             (4,384)             (4,076)       
  Total non-current liabilities                   (88,352)            (76,384)            (77,076)      
  Total liabilities                               (136,542)           (133,320)           (128,828)     
                                                                                                    
  Net assets                                      114,363             111,767             109,849       
                                                                                                    
  Equity                                                                                             
  Issued share capital                            2,008               2,008               2,008         
  Capital redemption reserve                      301                 301                 301           
  Share premium                                   16,192              16,192              16,192        
  Hedging reserve                                 (549)               (1,101)             (255)         
  Retained earnings                               96,384              94,340              91,576        
  Total equity attributable to equity             114,336             111,740             109,822       
  holders of parent                                                                                        
                                                                                                    
  Non-controlling interest                        27                  27                  27            
  Total equity                                    114,363             111,767             109,849       
      
       
       
           
 
 Condensed Consolidated Statement of Cash Flows 
 For the period ended 30 September 2015 
 
                                                                            Note    Six months to         Six months to         Full year to   
                                                                                   30 Sep 2015           30 Sep 2014           31 Mar 2015    
                                                                                   (unaudited)           (unaudited)           (audited)      
                                                                                   £000                 £000                 £000          
  Cash flows from operating activities                                              16,328                15,517                25,073         
  Profit before taxation                                                                                                                          
  Adjustment for:                                                                                                                           
  Pension fund contributions in excess of service cost                              (188)                 (188)                 (409)          
  Share based payment charges                                                       1,012                 823                   1,894          
  Depreciation                                                               5       13,274                12,073                25,023         
  Amortisation of intangibles                                                       861                   718                   1,684          
  Net financial expense                                                             991                   927                   2,023          
  Profit on sale of property, plant and equipment                                   (3,156)               (2,102)               (3,277)        
  Operating cash flow before changes in working capital and provisions              29,122                27,768                52,011         
  Decrease/(increase) in inventories                                                1,514                 (14)                  (854)          
  Increase in trade and other receivables                                           (2,937)               (6,089)               (2,746)        
  (Decrease)/increase in trade and other payables                                   (5,296)               3,121                 6,114          
  Cash generated from operations                                                    22,403                24,786                54,525         
  Interest paid                                                                     (1,003)               (923)                 (2,016)        
  Interest element of finance lease rental payments                                 -                     (1)                   (2)            
  Interest received                                                                 4                     4                     1              
  Income tax paid                                                                   (2,711)               (887)                 (2,873)        
  Net cash flows from operating activities                                          18,693                22,979                49,635         
  Cash flows from investing activities                                                                                                      
  Proceeds from sale of property, plant and equipment                               9,234                 5,757                 11,982         
  Purchase of property, plant and equipment                                         (29,814)              (24,346)              (52,887)       
  Acquisition of businesses and subsidiaries (net of cash and overdrafts)           -                     (5,405)               (5,405)        
  Net cash flows used in investing activities                                       (20,580)              (23,994)              (46,310)       
                                                                                                                                           
  Cash flows from financing activities                                                                                                      
  Purchase of own shares by Employee Trust                                          (8,360)               (7,122)               (11,059)       
  Repayment of loans                                                                -                     (9,000)               (10,000)       
  New loans                                                                         12,000                20,000                20,000         
  Payment of hire purchase and finance lease liabilities                            -                     (14)                  (17)           
  Dividends paid                                                             8       (4,490)               (4,039)               (5,986)        
  Net cash flows used in financing activities                                       (850)                 (175)                 (7,062)        
                                                                                                                                           
  Net decrease in cash and cash equivalents                                         (2,737)               (1,190)               (3,737)        
  Effect of exchange rate fluctuations on cash held                                 (284)                 (206)                 (5)            
  Cash and cash equivalents at beginning of period                                  5,236                 8,978                 8,978          
  Cash and cash equivalents at end of period                                 9       2,215                 7,582                 5,236          
     
       
      
          
 
 Notes to the Condensed Consolidated Interim 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 2015 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 2015, 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 24
November 2015. 
 
 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 2015 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 2015. 
 
 The Group continues to be in a healthy financial position with total banking
facilities of £100 million, including an overdraft facility.  Since the year
end net debt has increased by £15.0 million to £81.8 million.  The Board
has evaluated the banking 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.  Having reassessed the principal
risks the Directors consider it appropriate to adopt the going concern basis
of accounting in preparing the interim financial information. 
 
 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 2015 Annual Report
and Accounts.  The principal risks and uncertainty are market risk,
competition, investment / product management, people, safety and financial
risks. These risks and uncertainties remain the same for this interim
financial report. 
 
 3.   Summarised Segmental Analysis 
 
                      Revenue                              Operating Profit                  
                      Sept 2015         Sept 2014         Sept 2015    Sept 2014           
                                                                                       
                      £000             £000             £000        £000               
  Groundforce          24,543            22,566            5,556        4,962               
  UK Forks             9,785             9,128             2,919        2,343               
  Airpac Bukom         8,460             11,228            1,003        1,713               
  Torrent Trackside    15,748            13,035            1,677        1,300               
  TPA                  7,376             9,288             915          2,021               
  Hire Station         39,206            36,083            6,110        4,823               
                      105,118           101,328           18,180       17,162              
  Amortisation                                           (861)        (718)               
                                                        17,319       16,444              
 There has been no material change in the total net assets or liabilities from
the amounts disclosed in the last annual financial statements. 
 
 4.   Income Tax 
 
 The effective tax rate is 20.5% in the period to 30 September 2015 (30
September 2014: 21.2%).  The effective rate for the period reflects the
current standard tax rate of 20% (2014: 21%), as adjusted for estimated
permanent differences for tax purposes offset by gains covered by exemptions.
On 26 October 2015 the Finance Bill 2015/16 passed through the House of
Commons and so is now substantively enacted for IFRS purposes. The Bill
includes the change in corporation tax rate from 20% to 19% from 1 April 2017
and to 18% from 1 April 2020. This will require a release from the deferred
tax balance in the full year accounts to reflect the future reduction in the
tax rate. This release from the change in tax rate has not been reflected in
this interim statement. 
 
 5.   Property, Plant and Equipment 
 
                                          Sept 2015    Sept 2014    Mar 2015   
                                          £000        £000        £000      
  Opening carrying amount                  147,817      124,834      124,834    
  Additions                                27,297       25,587       56,337     
  Acquisitions                             -            1,389        1,389      
  Depreciation                             (13,274)     (12,073)     (25,023)   
  Disposals                                (6,078)      (3,655)      (8,705)    
  Effect of movements in exchange rates    144          (324)        (1,015)    
  Closing carrying amount                  155,906      135,758      147,817    
 The value of capital commitments at 30 September 2015 was £7,029,000 (31
March 2015 £7,630,000). 
 
 6.   Acquisitions 
 
 There were no acquisitions in the period. However, on 2 November 2015 the
Group acquired the entire issued share capital of Test & Measurement Group
Limited for consideration of £3.95 million. 
 
 7.   Earnings Per Share 
 
 Earnings per share have been calculated on 38,887,444 shares (2014:
39,010,574 shares) being the weighted average number of shares in issue during
the period.  Diluted earnings per share have been calculated on 41,554,659
shares (2014: 42,930,653 shares) adjusted to reflect conversion of all
potentially dilutive ordinary shares.  Basic earnings per share before the
amortisation of intangibles was 35.14 pence (2014: 32.81 pence) and was based
on an after tax add back of £689,000 (2014: £567,000) in respect of the
amortisation of intangibles.  Diluted earnings per share before amortisation
of intangibles was 32.89 pence (2014: 29.82 pence). 
 
 8.   Dividends 
 
 The Directors have declared an interim dividend of 5.35 pence (2014: 5.0
pence) per share payable on 8 January 2016 to shareholders on the register at
4 December 2015.  The dividend declared will absorb an estimated £2,087,000
(2014: £1,947,000) of shareholders funds. The dividend proposed at the
year-end was subsequently approved at the AGM in July 2015 and £4,490,000 was
paid in the period (2014: £4,039,000 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 15         Flow             30 Sep 15   
                                £000            £000            £000       
  Cash and cash equivalents      5,236            (3,021)          2,215       
  Revolving credit facilities    (72,000)         (12,000)         (84,000)    
                                (66,764)         (15,021)         (81,785)    
 On 11 May 2015 the £35 million revolving credit facility which was due to
expire in May 2016 was replaced with a new five year £45 million facility
expiring in May 2020. The Group's bank facilities therefore comprise a £45
million committed five year revolving credit facility which expires in May
2020, a £30 million committed four and a half year revolving credit facility
expiring in October 2017 and a £20 million committed revolving facility taken
out in June 2014 which also expires in October 2017, together with an
uncommitted step up facility of £20 million and 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: 
 
 
1DTR 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; and2DTR 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 
 25 November 2015 
 
       
        
 
 The Board 
 The Directors who served during the six months to 30 September 2015 were: 
 
 Jeremy Pilkington (Chairman) 
 Neil Stothard (Group Managing Director) 
 Allison Bainbridge (Group Finance Director) 
 Steve Rogers (Non Executive Director) 
 Phil White (Non Executive Director) 
        
        
        
 
 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 2015.  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 2015; 
 * the Condensed Consolidated Income Statement and Condensed Consolidated
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 
 
 25 November 2015 
 
 - 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#1969184
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