Strong performance from Vp plc

13 June 2016

Vp's Groundforce division rents shoring and trenching equipment.

Vp's Groundforce division rents shoring and trenching equipment.

UK rental company Vp plc has reported full-year increases in revenues and profits, and underlined its strategy of expansion through products and geography.

For the 12 months ended 31 March, 2016, Vp said profit before tax and amortisation increased 11% year-on-year to £29.8 million (€37.5 million) on revenues of £209 million (€263 million), up 2% compared to fiscal 2015.

Capital expenditure in the rental fleet was £45.9 million (€57.8 million), compared to £49.3 million (€62 million) for the 12 months previous.

In addition to organic investment in the fleet, the group made two acquisitions in the period, buying Test & Measurement Group Limited for £3.95 million (€5 million) in November 2015 and Higher Access Limited for £4.1 million (€5.2 million) in March 2016.

And Shortly after the end of the financial year, the company expanded in Australia and the Asia Pacific with the acquisition of TR Pty Ltd (TR) for AU$17.4 million (€11.4 million).

TR added significantly to the Group's existing Asia Pacific trading locations in Perth and Singapore, adding eight branches in Australia, three in New Zealand and two in Malaysia.

Vp owns the UK Forks, Groundforce, TPA, Hire Station, Torrent Trackside and Airpac Bukom brands.

Jeremy Pilkington, chairman of Vp, said, “Following last year's record breaking results, the Group has continued to make further good progress this year reporting another strong financial performance with improvements in profits, margins and returns, delivered from a relatively modest growth in revenues.

"This trend is expected to continue as the varying demands of supportive infrastructure, housebuilding and construction markets play against a challenged oil and gas sector.

"It has also been a busy period for acquisitions, with two businesses acquired in the UK and post year end, the acquisition of TR Pty Ltd, which significantly expands the Group's non-UK revenue base, one of our key longer term strategic objectives."

"We enter the new financial year in good shape, with most end markets offering supportive trading environments and with the prospect of contributions from our acquisitions.

"Our business model of diverse and specialist services continues to serve us well and with the new financial year starting positively, we look forward to another year of progress for Vp and our shareholders."

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