VP maintains profits despite 15% revenue fall
By Murray Pollok15 June 2010
Vp plc remained profitable despite a 15% fall in revenues for the year to 31 March 2010, with pre-tax profits before amortisation and exceptional items of £16.0 million on revenues of £134.2 million. Net profits were £10.2 million.
None of the company's six specialist rental divisions made a loss, with Groundforce, TPA (temporary trackways), Airpac Bukom Oilfield Services and Hire Station (tool hire) performing the best and UK Forks (telehandler hire) and Torrent Trackside (railway equipment rentals) at around the break-even level.
Jeremy Pilkington, chairman of Vp plc, said; "Despite challenging conditions continuing in most of our markets, this has been another robust performance by the Group.
"We believe that our combination of products and markets will continue to stand us in good stead, providing a compelling mix of downside resilience and upside opportunity. Vp enters the new year in excellent financial shape, able to sustain the development of the Group over the longer term, and cope with the shorter term challenges presented by the current trading environment."
Mr Pilkington said the company looked ahead with some optimism, although he pointed out that measures to reduce public sector borrowing in the UK had not yet had an impact on the business; "Public infrastructure investment has become an important market for several of our businesses and the prospect of cutbacks, not so much this year (2010/11) as thereafter, causes us to view medium term prospects with a degree of caution."
The company invested £13.9 million in its fleet during the financial year - around half that of the previous year - and much of this was spent on the Groundforce, Airpac Bukom and Hire Station businesses. Groundforce and Hire Station are its two largest businesses, accounting for around 60% of total revenues.
The company's Airpac, Groundforce and TPA businesses include operations outside of the UK.