Strong 2013 for Vp
By Helen Wright05 June 2014
UK-based rental company Vp has reported year-on-year increases in revenues and profit for 2013, fuelled by growth from all its divisions.
Revenues were up 10% to £183 million (€225 million), while net profit for the year stood at £15.7 million (€19.3 million), compared to £13 million (€16 million) in 2012.
During the year, Vp spent £38.2 million (€47 million) on rental fleet upgrades and renewals, a 70% increase over 2012. It said this growth demonstrated its confidence in the quality of investment opportunities.
Vp also expanded its Groundforce trenching and shoring division in 2013 with the acquisition of Mr Cropper, a company that rents pile cropping machines, for £4.6 million (€5.5 million). It said this business was now trading “very successfully” within Groundforce.
Groundforce itself reported revenues of £42.3 million (€52.1 million), up from £37.2 million (€45.8 million) in 2012.
It said regional demand was varied, with increased activity in the South and the North of England compensating for a slower market in Scotland, following completion of a significant contract in the transmission sector.
However, Vp said its start-up Groundforce business in Germany was still incurring losses, but it said it remained positive about prospects.
The business is centred around hubs in Germany which provide a platform for the supply of products on a regional basis, together with infrastructure to take on major project work across the wider mainland European market.
Meanwhile, Vp’s Hire Station division – which is its largest division by revenues, and supplies small tools and specialist equipment for industry and construction – reported an 11% improvement in revenues to £66.2 million (€81.5 million).
And its UK Forks division, which supplies rough terrain material handling equipment, including telescopic handlers, reported a 19% year-on-year increase in revenues to £16.3 million (€20.1 million).
Its Airpac Bukom oilfield services division reported a 16% increase in revenues to £20.2 million (€24.9 million); its Torrent Trackside division – which supplies equipment to the rail industry – reported a 4% rise in revenues to £22.3 million (€27.5 million); and its TPA portable roadway solutions division saw a 6% increase in revenues to £15.8 million (€19.5 million).
Chairman Jeremy Pilkington said economic indicators in the UK and mainland Europe now appeared more positive than for some time.
“All businesses within the group are identifying significant opportunities for growth and investment,” he said, adding, “We look forward to the year ahead with confidence."