Core markets strength generates optimism for tool hire group

Equipment rental specialist, Vp, says it is making good progress within its core markets of infrastructure, construction, housebuilding and energy.

In a trading update for the period since its interim results were issued on 29 November 2022, the Harrogate-based business says its UK division has seen the benefit of a stronger civil engineering and infrastructure market.

The company notes its housebuilding customer base has, as expected, reduced volumes since the start of the new calendar year, but it still remains busy in this sector.

To combat cost inflationary pressures Vp says it has successfully negotiated price increases across its customer base, which has helped mitigate increased costs.

Neil Stothard, chief executive, said: “We are pleased our performance for the full year will be in line with the Board’s expectations.

“In the period, we have worked hard to successfully mitigate cost inflationary pressures and we believe the group is well placed to optimise performance in the current environment.

“We are confident that we will continue to deliver value growth for our shareholders and will be able to react quickly to both challenges and opportunities as specific markets recover.”

Vp adds it expects macro-economic pressures to remain “for the foreseeable future”.