Equipment business in record-breaking shape following acquisitions

EQUIPMENT rental business Vp plc has been on the acquisition trail this year as its revenues and profits increase. Revenues for the year to 31 March 2016 rose to £208.7m, up from £205.6m the year before when it smashed the £200m turnover barrier for the first time.

Meanwhile pretax profits also increased to £27.5m up from £25.1m.

The Harrogate-based firm has completed three acquisitions, with the last falling just outside the period end.

In November 2015, Vp acquired £3.65m Test & Management which now operates as part of Vp’s ESS Safeforce business.

In March, the business acquired Higher Access Limited, a hirer of tracked aerial work platforms.Most recently, Vp acquired TR Pty, a Melbourne-based business in a deal worth £9.47m (AUS$17.4m). It added eight Australian branches, three in New Zealand and two in Malaysia.

The firm also invested £45.9m in its hiring fleet over the year, just down from last year’s £49.3m.

Neil Stothard, chief executive spoke to TheBusinessDesk.com this morning. He said: “The main point for the year is that there has been further improvement in quality of our results and we saw good progress in terms of most of our businesses. It has not been the most buoyant marketplace but we have proven we can operate in any environment.

“We have been more acquisitive than we’ve been for some time, and I think we always see acquisition as part of our growth plan. We’re tuned into that and equally excited about organic opportunities.

“The challenge of acquisitions, however is that as much you like them, you can’t always get them.

“One of the important elements in the coming year is to integrate acquisitions we’ve made. It is already going well and the businesses are looking forward to first full year contributions to the group. We’re also happy with our core market areas, housebuilding and construction for example are going to be supportive over the next 12 months.

“One areas we’d flag is the oil and gas sector, though it makes up less than 10% of the group’s activities. We foresee another 12 months of challenging conditions. In the year so far, oil price has improved significantly to over 50 dollars a barrel, so the direction of travel there is good but it’s not going to sort itself overnight. We are committed to that segment in the longer term and look to see the long term benefits of it as well.”

The board recommended a final dividend of 13.5p per share making a total for the year of 18.85p per share.