Positive results from VP plc
04 June 2019
Vp plc has reported improved profits and revenue growth for the year to 31 March 2019. Revenues were up 26% to £382.8 million, with operating profits increasing by 11% to £33.6 million.
The results include a full-year contribution from the Brandon Hire tool rental business acquired in November 2017 as well as exceptional charges of £8.6 million.
The exceptional charges include £3 million for integration costs for Brandon and a £4.5 million allowance for possible regulatory fines. This relates to the previously reported Competition and Markets Authority (CMA) investigation into possible anti-competitive behaviour at VP’s Groundforce business. VP said the allowance was required by accounting regulations and was not an admission of culpability.
The UK division reported a 16% increase in operating profit before amortisation and exceptionals to £49.9 million, with revenues increasing by 29% to £350.3 million.
The two-year integration of Brandon Hire with Tool Station will be completed by the end of the calendar year 2019. The business is now trading as Brandon Hire Station, with 1500 employees and 200 branches.
VP’s international division posted improved profits - £1.7 million compared in £1.0 million in the previous financial year - on revenues 3% higher at £32.5 million. This business comprises Airpac Bukom, a global supplier to the oil and gas sector, and Australasian testing equipment and AV hire business TR Group.
Neil Stothard, Chief Executive of Vp plc, said; “Vp has started the new financial year positively and in line with our expectations. We anticipate that our main markets in the UK will continue to be supportive, but with slightly slower overall growth than experienced in recent years influenced by the current political and economic uncertainty.
“I am pleased to say that the international backdrop is also broadly positive, with opportunities in Australasia with TR Group and the wider oil and gas exploration and maintenance sectors too.”
VP invested £63.8 million in its equipment fleet last year, almost the same as the £64.9 million in the previous year.