Acquisitive Vp hails record year in which it snapped up four UK businesses
Harrogate-based hire business Vp has posted record results with a 16% increase in pre-tax profits to £40.6m and a 22% growth in revenues to £400m.
During the year to March 31 2018, the firm acquired four UK businesses as part of its strategy to grow and develop its services further. Jackson Mechanical Services, Zenith Survey Equipment and First National have all been successfully integrated and in November 2017, Vp acquired Brandon Hire for £69.2m, including debt.
Its acquisitions spend stood at £49.7m, plus assumed debt of £30.5m.
Speaking to TheBusinessDesk.com this morning, CEO Neil Stothard said Brandon was integrating well, adding: “There is still plenty to do but in a very positive way. We are really pleased with the start the business has made.”
Brandon was the Group’s largest acquisition, adding a team of 900 tool hire specialists to the firm. The combined tool hire business will operate from over 200 locations across the UK.
Pre-tax profit was up to £30.6m from £34.9m, revenues grew to £303.6m from £248.7m in 2017. The firm has proposed a final dividend of 19.2 pence per share, making a total of 26.0 pence for the full year (2017: 22.0 pence), an increase of 18%.
“It is a very pleasing set of results. It is the continuation of a good long-term trend of growing the business in a quality way,” added Stothard.
He added that organic growth had also played an important part in the successful year, with a £65m capital investment programme across its fleet.
Jeremy Pilkington, chairman of Vp plc, said: “It has been another year of significant progress for the Group underpinned by record profits and the acquisition of Brandon Hire, our largest to date. We entered the new financial year in excellent shape and whilst there may be market uncertainties, we look forward to the new financial year with confidence.”
Stothard added: “The start to the new financial year has been positive. We anticipate that our core UK markets will continue to provide a strong platform for future growth to our UK division. Internationally we do see some recovery in the oil and gas segment and a supportive Australian economy. We continue to drive positive change and development through the whole of Vp and we remain excited about delivering on those initiatives in the new financial year.”
