Diversity is our strength, says VP
VP’s strategy of broadening its specialist rental activities has afforded it protection from both the seasonal and economic downturn.
The Harrogate-based equipment hire business said today that the winter trading period had been seasonally quieter as expected but had been further impacted by deteriorating economic conditions.
However, the group still expects to report full year results in line with market expectations largely helped by markets such as water, rail and publicly funded construction projects.
Over the years VP has expanded its operation to create six divisions serving a wide variety of industry sectors such as roadway systems, rail and oil and gas exploration.
But it admitted that it expects most of the sectors it serves to have a challenging year ahead in particular commercial construction and housebuilding, but also the oil and gas exploration business following the decline in the price of crude oil.
“The volatility in the economic environment makes it uniquely difficult to predict future performance,” VP said.
“However, taking all circumstances into account, we expect to deliver a satisfactory result in the forthcoming financial year relative to the current market.”
VP’s six business divisions include Hire Station, which provides tools and specialist products for industry, construction and home owners and TPA , which supplies portable roadway systems, bridging, fencing and barriers.
Torrent Trackside rents infrastructure equipment and services for the railway renewals and maintenance industry while 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.