In the year ended 31st March 2023 Vp increased revenue by 6% to £371.5m (2022: £350.9m) but saw pre-tax profit fall 14% to £30.7m (2022: £35.6m).
The dent to the bottom line was due to £5m exceptional items, comprising £1.7m of costs exploring sale options and £3.3m restructuring costs, mainly in relation to depot closures.
A formal sale process was abandoned in August 2022 after four months after a review of options determined that none represented value for money. [See our previous report here.]
Capital investment last year included £59.9m on rental equipment, including £15m on more environmentally friendly products that replaced, in many cases, petrol/diesel driven alternatives.
Vp businesses include UK Forks, Groundforce, TPA, Brandon Hire Station, ESS, MEP and Torrent Trackside.
With the slow-down in the house-building sector later in the year, telehandler hire business UK Forks accelerated the disposal of surplus rental fleet as utilisation eased.
Tool hire chain Brandon Hire Station put up its prices by 10% in January 2023 and shut five branches, leaving it with just under 150.
Vp chairman Jeremy Pilkington said: "We are pleased to report another solid year of trading with good progress made across all key metrics, with the group successfully navigating a highly volatile macroeconomic backdrop.
"The group's return on average capital employed of 14.4% continues to demonstrate our excellent quality of earnings and resilience in times of supply chain disruption and slowing growth in some markets. In line with our dividend policy and underpinning our confidence in the business, we are pleased to propose a final dividend of 26.5 pence per share, making a total for the year of 37.5 pence.
"We remain confident that the group will continue to provide shareholders with an attractive level of returns. Vp has an excellent track record and we believe the current market challenges will bring into view profitable growth opportunities."
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