Record-breaking year for acquisitive Vp
“We invest in quality, not growth for the sake of it,” said Neil Stothard, chief executive of acquisitive Vp after the business reported record-breaking growth.
The Harrogate-based hire business saw 19% growth in revenues to £248.7m for the year to March 2017, up from £208.7m the year before.
Pre-tax profits grew to £30.3m up from £27.5m in the same period, which the business said was down to its aggressive acquisition strategy which helped to diversify the business.
In the UK, the company benefitted from the first full year contribution from Higher Access which was acquired in March 2016 for £4.1m.
Internationally, the company acquired TR Pty Ltd in April 2016, an Australian technical equipment rental and testing business, which then acquired a New Zealand business later in the year.
Post year-end, two acquisitions were completed, that of Jackson Mechanical Services for £3.6m and Zenith Survey Equipment for £3.85m, adding further to its strong UK operations.
Across its four core sectors, said the group, infrastructure, construction and housebuilding remained strong, but its international exposure to mining, oil and gas was a “challenge”.
Neil Stothard, chief executive of Vp, spoke to TheBusinessDesk.com this morning. He said: “Because we have this diverse range of markets that we’re exposed to, that’s an important strength as a business.
“We can ride the ups and downs of a sector and the oil and gas has been weak for a number of years. We’ve seen some modest stability return to market and need to take a medium term view on recovery – it won’t fix itself overnight, but we remain committed to that sector.
“Over time we’re looking to grow both UK and internationally and for me it doesn’t matter whether it comes through acquisition or organic investment. Sometimes one is more available than the other. Our focus on operating in diverse markets in UK and overseas in specialist rental remains our core strength and hopefully our results speak for themselves.”
Dividends paid for the year amounted to £7.6m, around a 17% increase.
Jeremy Pilkington, chairman of Vp plc, said: “It has been another record-breaking performance for Vp and we are delighted with the significant progress made within the Group.
Looking ahead, the new financial year has started well and at this very early stage, I believe there is every prospect that we may look forward to another year of significant progress for Vp and our shareholders.”
