UK-based rental company Vp plc has begun to feel the effects of the coronavirus pandemic, with revenues taking a hit towards the end of March 2020.
This follows a slower end to 2019, when construction-related demand was dampened ahead of the UK general election – a trend that then continued further into the final quarter of the financial year.
By contrast, the infrastructure and house building sectors held up well, and activity in Vp plc’s international division remained stable.
In the latter part of March, revenues have been suppressed by the coronavirus crisis. Although the impact has been relatively limited in Vp plc’s UK businesses, the trend is expected to continue.
This is true not only in the UK but also in Vp plc’s international markets, where government action has limited activity to all but essential business.
Consequently, although the company is expecting satisfactory full-year results, they will be at a lower level than previously hoped.
Given that Vp plc has, in the past, experienced significant market challenges, the company said it is confident it has the strength and experience of management, as well as the strength of balance sheet and business model, to emerge from this global crisis and secure the longer-term future.
Vp plc said it is inherently strong in generating cash and also has the ability to quickly and significantly reduce capital expenditure.