04.06.2015

12% lift for Vp

UK based rental company Vp - owner of UK Forks and Hire Station - has reported its full year results with profits rising substantially at both operations.

Revenues at UK Forks were £18.2 million, 12 percent higher on the year, while operating profits jumped 62 percent to £4 million. Increased demand was seen from both the general construction and housebuilding sectors. Capital expenditure was £11.2 million compared to £7 million the year before.

Hire Station, the tool and general rental business, which is becoming increasingly involved in the low level powered access market, saw revenues rise over 16 percent to £77 million, while operating profits jumped over 80 percent to £8.7 million. Capital expenditure was £20.1 million compared to £13.4 million last year. The company opened new locations in London, and a branch in Rotterdam. It says that its access business has been very busy and that during the year it supported UK contractors by supplying equipment to projects in Finland and the Netherlands, something it hopes to increase in the current year.

The other Vp business which impacts on our sector is TPA which supplies ground mats and trackway type products. It saw revenues decline eight percent to £14.6 million, thanks to an unusually dry winter, profits almost halved to £1 million. The company more than doubled its spending on new equipment to £2.3 million.

The group as a whole saw revenues rise 12 percent to £205.6 million, while pre-tax profits jumped 33 percent to £25.1 million. Net debt increased from £53 million to £66.8 million.

Chairman Jeremy Pilkington said: “It gives me great pleasure to report to shareholders on another excellent, indeed record breaking, year for the group. Our relentless focus on exceeding and redefining customer expectations, provides the foundation for these results. We only promise what we can deliver and we deliver what we promise.”

Profits before tax and amortisation improved by 33 percent to £26.8 million, the result exceeds, by a considerable margin, our previous best year in 2009 when the group reported profits of £21.7 million. All of our key financial metrics have improved significantly.”

“In view of this outstanding set of results, the board is recommending a final dividend of 11.5 pence per share making a total for the year of 16.5 pence per share, an increase of 18 percent. We see the next few years as offering great opportunities for the group assisted by the unambiguous general election result. We are able and determined to take the fullest possible advantage of these opportunities.”

Vertikal Comment

Another first class set of results from Vp. It is also interesting to see that the company is quietly and modestly expanding its overseas activities, TPA already has a solid presence in countries like Germany, whether it can expand this to other sectors such as UK Forks and Hire Station remains to be seen.

The company is conservatively managed and has been quietly gaining on some of the larger rental competitors. It is in an excellent position to benefit from the current economic cycle which ought to have several years to run.