Vp benefits from signs of recovery

EQUIPMENT rental specialist Vp said it was beginning to benefit from tentative signs of economic recovery this morning.

The Harrogate-based company, which saw revenues fall to £134.2m from £157.5m last year, said it had seen stability in its markets and the pattern of demand for its services had met expectations.

In an update the company, which provides equipment to a range of sectors from construction to oil and gas, said: “The group has seen some areas of improvement with the business benefitting from a tentative recovery in house building and a modest uplift in rail activity.”

Vp said oil and gas related activity had been slower than expected in the first half because of delays on projects but those had now been resolved and the company was “confident that this market will continue to offer good prospects going forward”.

Last year the company  reduced its net debt by £17.5m to £48.3m and Vp now expects to see its borrowings reduced further in the current financial year in the wake of an agreement on new banking lines.

The statement said: “Whilst we anticipate further challenges ahead, particularly in construction related markets, the trading outlook for the year remains unchanged.”