Vp expects ‘overall stability’ in 2010
EQUIPMENT rental specialist Vp believes that its trading will experience “overall stability” this year in line with its expectations.
But the Harrogate-based company said in an interim management statement that it expects some of its markets will experience ‘downward pressures’.
Vp has six core businesses which rent tools, specialist products and drilling equipment – among many other items – to gas and oilfield companies as well as construction and engineering firms.
The company’s statement said that the bad weather at the start of 2010 did impact on trade but this has subsequently recovered.
It states: “General constructino has remained challenging and whilst we have seen some tentative revovery in demand from housebuilders, commercial construction remains very subdued, a feature we expect to continue.
“The oil and gas exploration market is stable with improving prospects in the medium term.”
The company added that changes within the rail industry might create a ‘hiatus’ within the anticipated improvements to this sector.
Vp also confirmed that it was continuing to reduce its debt levels while continuing to invest in the business.