07.06.2016

UK Forks up 10

Vp, owner of UK Forks has issued its full year results, which are flat overall but with a solid increase at telehandler rental company UK Forks.

Overall Vp had revenues of £208.7 million, 1.5 percent up on the previous year, due to slower sales at its oil and gas equipment supply company Airpac Bukom and temporary roadway supplier TPA. These were offset by increases in, UK Forks, general rental business Hire Station and rail rental business Torrent Trackside. Pre-tax profits however increased 10 percent to £27.5 million.

UK Forks saw revenues climb 10 percent to £20 million, while operating profits jumped 30 percent to £5.2 million (2015: £4.0 million).
The company said that business experienced similar levels of demand to last year from both housebuilding and construction, encouraging it to maintain capital expenditure at £11.1 million, just £100,000 below the previous year.

A month before year end spider lift rental company Higher Access was acquired and joined the UK Forks business. UK Forks is forecasting house building and general construction to remain stable maintaining progress with its telehandler operation, while the new access business should substantially boost overall revenues.

General rental company Hire Station saw revenues improve seven percent to £82.5 million, while operating profits increase of 32 percent to £11.5 million. Capital investment in the fleet was reduced from 20 million to £`17.4 million. In spite of this the company says it is continuing “to build one of the youngest hire fleets in the market, with a focus on availability, quality and compliance”.

Chief executive Neil Stothard said: “We enter the new financial year in good shape, with most end markets offering supportive trading environments and with the prospect of fresh contributions from the three newly acquired businesses. In particular, the acquisition of TR Group Pty underlines our determination to expand our trading horizons both in terms of product and geography. We believe that opportunity exists to further leverage Vp's key skill sets in equipment rental both in the UK and in overseas markets”.

“Vp has, in the year under review, reported good progress, with further improvement in profit 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. The new financial year has started well and we look forward to another year of progression for Vp and our shareholders.”

Vertikal Comment

All in all this is another good set of numbers from Vp, with its diversity helping maintain solid improvements. In particular the substantial improvements in profitability at three of its six divisions while two were flat in spite of lower revenues and one declined is impressive in what has been a patchy market.

With the company going into the new year with three new acquisitions, in place, the prospects for the current year look bright.