Vp looks for strength in diversity
EQUIPMENT hire group Vp today delivered a solid set of half-year results and predicted its figures for the full year will be “satisfactory” despite the downturn.
The Harrogate-based group said that pre-tax profits before amortisation increased by 15% to £13.9m in the six months to September 30 with revenue up 7% at £81.6m.
While managing director Neil Stothard said that the traditional winter months slowdown in business would be compounded by the fall in construction activity, he said the group’s diversity would give it strength.
“We have been trying to get the message across about our diversity of markets,” said Mr Stothard this morning, pointing to its work in rail infrastructure, water industry and the National Grid.
“We are not immune to the downturn but we have been tightening our belts, carefully managing costs, slowing recruitment and being pretty careful over the last six months and we feel that we have a fairly lean business model,” he said.
The group increased operating margins to 17.1% from 15.9%, earnings per share by 10% to 23.55p and is paying an interim dividend of 3.1p, up 11%.
Mr Stothard said that while the group would not rule out more acquisitions, it was taking a more cautious approach but would look at the “right opportunities” if they appear.
Chairman Jeremy Pilkington, said: “We are pleased to report further profit improvement in the period and expect that the result for the full year will be satisfactory. Vp benefits from being engaged in a diverse range of markets and whilst the trading environment is more difficult to predict going forward, we believe this diversity will offer some resilience against the economic climate and positions us to benefit when more normal trading conditions resume.”
VP s now made up of six business divisions – each specialising in a different area of construction equipment supply.
Hire Station provides tools and specialist products for industry, construction and home owners; TPA supplies portable roadway systems, bridging, fencing and barriers; Torrent Trackside rents infrastructure equipment and services for the railway renewals and maintenance industry; Groundforce hires out excavation support systems and specialist products for the water, civil engineering and construction industries; UK Forks provides rough terrain material handling equipment for industry, residential and general construction; while Airpac Bukom Oilfield Services rents out equipment in the international oil and gas exploration and development markets.
