Diversity a stength says Vp
VP, the North Yorkshire equipment rental group, said today that its diversity remains a strength in a challenging trading environment.
The Harrogate-based firm said that its multi-discipline group had provided “some resilience” but that it still expects recovery to be slow.
It said that demand in general contracting had softened with projects being cancelled or put off and that although some stability had returned to the housebuilding sector activity remains historically low.
By contrast however, the UK’s infrastructure and regulated utility markets continue to provide good opportunities for the firm’s specialists businesses.
Vp said that the oil and gas sector had remained satisfactory for the period following its year-end results in May as had transmission, albeit with lower levels of activity.
Meanwhile, the slowed rate of investment on the rail network has impacted Vp’s rail contracts. However, the firm remains positive of longer-term prospects in the sector.
In a statement Vp said: “General market uncertainties persist but the business remains in excellent financial health.
“Our exposure to a wide range of regulated and outsourcing markets provides some cushion to the general economic slowdown. We believe that subject to no further deterioration in our markets, we remain in position to deliver another satisfactory result in the current financial year.”
In May, Vp revealed that pre-tax profits had risen 8% to £21.7m for the year ended March 31.
VP’s six business divisions include Hire Station, which provides tools and specialist products for industry, construction and home owners and TPA , which supplies portable roadway systems, bridging, fencing and barriers.
Torrent Trackside rents infrastructure equipment and services for the railway renewals and maintenance industry while Groundforce hires out excavation support systems and specialist products for the water, civil engineering and construction industries.
UK Forks provides rough terrain material handling equipment for industry, residential and general construction while Airpac Bukom Oilfield Services rents out equipment in the international oil and gas exploration and development markets.
