Long-term confidence for tool hire group, despite market turbulence

Equipment rental specialist, Vp, says it has managed a resilient performance in the face of difficult market conditions, as it issues a trading update for year ended 31 March 2024.

The Harrogate-headquartered business says the infrastructure sector has been particularly supportive with continued strong demand from the rail, transmission and water sectors.

However, it warns the general construction market remains challenging, which has impacted the performance of its Brandon Hire Station business.

An operational review of this division is well advanced and Vp adds its new management team is focused on actions to drive margin improvements alongside medium term strategic objectives.

Vp notes its strong balance sheet has been further enhanced by a reduction in net debt.

In November 2023, the business successfully refinanced its Revolving Credit Facility on favourable terms and says it is now well positioned to take advantage of any organic and acquisition opportunities.

Anna Bielby, chief executive officer, said: “Despite challenging market conditions, the quality of our diverse offering positions us well to continue to deliver sector-leading returns.

“With refreshed senior management and a strong financial base, we have a robust platform to take advantage of growth opportunities in the market and as such, we are confident in the long-term prospects of the group.”