Key acquisitions boost Harrogate firm’s profits
A STRING of key acquisitions and growth across its business divisions has helped VP post record results.
The Harrogate-based equipment rental specialist announced today that its profit before tax rose to £12.1m in the six months ended September 30 – a rise of 55% on the same period last year.
Capital investment almost doubled to £24m, with revenue growth soaring 24% to £76m from £61.3m. Interim dividend increased by 24% to £2.80 pence per share.
Jeremy Pilkington, chairman of VP, said that he was delighted with the results, followed by continued positive trading through the autumn and further acquisitions.
“We are especially pleased with Hire Station's achievement of its margin recovery a year ahead of schedule,” he said.
“Furthermore, we are confident that the strength and breadth of our business mix will stand the group in good stead for the rest of the year and beyond.”
VP said that all its businesses had performed well including Groundforce, UK Forks, and Airpac Bukom.
However, it said that Torrent Trackside, along with other suppliers to the rail sector, had experienced difficult trading conditions not aided by Network Rail's supply chain review and delay in London Underground's track maintenance programme.
TPA, VP's road division fared better through, with its German subsidiary also reporting a successful half-year.
Since the half-year the group has made four acquisitions totalling £2.5m. In October, the rail portable assets of First Engineering together with their premises in Glasgow were acquired by Torrent Trackside for £1.2m.
In November, VP acquired two Irish businesses specialising in shoring and pipe testing rental. Able Safety, a West Yorkshire safety equipment firm and training business was bought for £0.75m.
VP, formerly known as Vibroplant, was founded in 1954. It was floated on the London Stock Exchange in 1973m, and now comprises of six business divisions – each specialising in a different area of construction equipment supply.
