29.11.2016

Strong first half at Vp

Vp owner of UK Forks, Higher Access and Hire Station has reported a strong first half in terms of revenues and profits. The numbers confirm the positive trading statement issues in September See positive first half from Vp

Total revenues were £121.7 million, up 16 percent on the same period last year, with a strong performance in the UK, which represents almost 90 percent of revenues, particularly in terms of profitability. Pre-tax profits improved nine percent to 17.72 million, while capital investment on the rental fleet jumped 28 percent to £29.9 million. Net debt increased 25 percent to £107.5 million driven by the higher capex and £42.5 million spent on acquisitions.

Chairman Jeremy Pilkington said: "Strong organic growth plus the successful integration of two acquisitions has delivered this excellent set of results. Increased capital investment into market opportunities gives us confidence that we will be able to deliver results ahead of market expectations for the year as a whole."

“I am very pleased to report a further set of excellent results for the six month period to 30 September 2016. Which reflects strong underlying organic growth in most of our businesses, plus contributions from the acquisitions of Higher Access and TR Group in March and April 2016 respectively. Return on capital employed at 15.6 percent is strong and remains ahead of our long term target of 15 percent emphasising the quality of the revenue and profit growth that the Group is generating.”

“Capital investment in fleet in the period rose significantly to £29.9 million. Borrowings at the period end stood at £107.5 million after funding organic investment and acquisitions totalling £42.5 million. Operational cash flow remained very strong at £26.6 million.”

“In conclusion we remain very positive about the opportunities for the Group in the second half of the year and beyond, and believe that we will be able to report results ahead of market expectations for the financial year as a whole.”

Vertikal Comment

Another excellent set of numbers from Vp which steadily goes from strength to strength, the company looks well set for a good year, but is also setting itself up for another strong year in 2017/18 with plenty of upside potential thanks to its strong financial position and relatively low leverage.