Acquisitive Vp seeing benefits of this year’s investments
“We think any further growth will be a mix of acquisitive growth from investments and organic growth through our divisions,” said Neil Stothard, chief executive of equipment rental firm Vp.
The Harrogate-based firm has reported half-year pre-tax profits of £21m, up 13% from £18.7m in the previous half-year results. Revenues of £136m have been recorded, 12% ahead of last year.
Speaking to TheBusinessDesk.com this morning, Stothard said the UK arm of the business had done very well due to the work available in the construction, utilities and housing sectors. He said: “These results are driven by a strong UK performance.
“The acquisitions we have completed this year have settled in really well and just under a quarter of revenue growth has come from those acquisitions. The balance has come across from those existing businesses- they are not being propped up.”
Stothard added that further growth was in the firm’s sights and he expected the UK market to remain stable. The firm made its biggest ever acquisition this year – taking on Brandon Hire Group Holdings Limited and its subsidiaries ‘Brandon Hire’ for a cash consideration of £41.6m plus debt of £27.2m to create a market leading offering in the UK specialist tool hire sector.
The business also purchased First National, a specialist rough terrain forklift rental business for £0.9m and debt of £0.8m.
Stothard added that the overseas business TR Group, based in Australia, which Vp purchased around 18 months ago, had also posted good results. However, the smallest division of the business in the oil and gas exploration sector was “quiet but slowly improving.”
This morning’s results show that EBITDA increased to £41.1m (H1 2017: £36.3m). Its capital investment in rental fleet was up 9% at £32.5m (H1 2017: £29.9m)
Statutory profit before tax stood at £20.3m (H1 2017: £17.7m) and statutory earnings per share of 42.5 pence (H1 2017: 35.9 pence).
Jeremy Pilkington, Chairman of Vp plc, commented: “Vp has again delivered an excellent set of results for the half year. The UK market remains strong, and whilst there is some uncertainty around the implications that Brexit will have on the UK, the day-to-day demand continues to be highly positive. There is also an improving trend for our International Division in the second half of the year.
A significant post period highlight was the successful acquisition of Brandon Hire and this, coupled with the organic opportunities available elsewhere within the Group, encourages the Board to look forward to the second half of the year and beyond with every confidence.”
