Equipment rental group in ‘excellent financial shape’ despite headwinds
Harrogate-headquartered equipment rental specialist, VP group, says it has seen further growth in the first half of the new financial year.
In a trading update today, the business reports UK, housebuilding and infrastructure activity has been supportive throughout the period, while construction market conditions were stable.
In infrastructure markets, the recent strike actions on the British rail network have partially impacted some planned works, and in HS2, demand has slowed as phase two of the project has experienced delays.
General construction was satisfactory, with repair and maintenance remaining positive and new build relatively quiet, although general civil engineering activity is picking up. Housebuilding also provided positive demand in the first half of the financial year.
VP adds its International division has made good progress in the first half, with both constituent businesses – Airpac Rentals and TR Group – delivering good growth on the prior year.
The business’s update notes: “While VP remains alert to quality growth opportunities, we remain mindful of the current uncertainties in the wider economy and we continue to carefully manage the Group’s costs and fleet expenditure.
“The Group remains in excellent financial shape to invest into further growth as and when market conditions improve.
“The Board has an exemplary historic record of managing the Group and delivering returns through adverse trading conditions most recently in the last global downturn and then in the pandemic.”