Robust figures for equipment rental group despite economic turbulence
Equipment rental specialist, Vp Group, has hailed a resilient performance in its audited final results for the year ended 31 March 2023.
Revenues climbed 6% to £371.5m (2022: £350.9m), with adjusted pre-tax profits up 4% to £40.5m (2022: £38.9m).
The Harrogate-headquartered business says it enjoyed solid demand from rail, transmission and the water sectors in the UK’s infrastructure markets.
Jeremy Pilkington, chairman, said: “We are pleased to report another solid year of trading with good progress made across all key metrics, with the group successfully navigating a highly volatile macroeconomic backdrop.
“The group’s return on average capital employed of 14.4% continues to demonstrate our excellent quality of earnings and resilience in times of supply chain disruption and slowing growth in some markets.
“In line with our dividend policy and underpinning our confidence in the business, we are pleased to propose a final dividend of 26.5 pence per share, making a total for the year of 37.5 pence.”
Neil Stothard, chief executive, added: “Despite the macro-economic conditions that continue to impact some of our core markets, we are pleased our performance has remained consistent and in line with the Board’s expectations.
“Our revenue rose by 6% during the year to £371.5m, providing some comfort that the group can progress in a challenging market.
“The increase was driven both by improving trading conditions in our international businesses, particularly in South East Asia, Australia and New Zealand, and in addition to good progress made in the UK and Europe.”
Vp Group says its strong balance sheet leaves it well placed for growth in the UK and internationally.
It notes that markets remain stable into the new financial year and that it is investing in business infrastructure, people, rental fleet and property to help deliver further growth for the group.