Interim results for Vp plc show an exceptional item of £1,837,000 for the formal sale process that was launched at the end of April and abandoned in August.
This meant that the Harrogate-based company’s results for the six months to 30th September 2022 showed a 4% decline in year-on-year profits before tax, from £18.6m last time to £17.9m.
Revenue was up 6% to £186.5m (2021: £176.1m).
The Vp group includes UK Forks, Brandon Hire Station, Groundforce, TPA, ESS, MEP Hire, Torrent Trackside, Airpac Rental and TR Group in Australasia.
The £186.5m half-year revenue comprised £140.9m from equipment hire, £31.2m from services and £14.4m from sales of goods.
Chairman Jeremy Pilkington took over running the business in 1978 at the age of 27 on the premature death of his father Geoffrey, controls 50.26% of the publicly-listed business. Now aged 71, he launched a sale process in April this year but was unable to find a suitable buyer and called it off.
He said that the results for the six months to end of September this year reflected a period of continued recovery and demonstrate strength of the business.
“Our businesses have continued to make good progress in their engagement with customers and supply chain partners to deliver sustainable and innovative fleet solutions as we collectively strive to reduce emissions,” he said.
"The period under review has seen continued inflationary pressure on fleet capital costs, transport, fuel, wages, utilities and interest costs, but we have largely mitigated these with agreed price increases combined with a diligent focus on efficiencies within our business. We expect these actions to remain a priority for the foreseeable future.
“Notwithstanding these challenges, we remain alert to quality growth opportunities whether organic or via acquisitions and we remain confident of delivering a full year outcome in line with the board's expectations."
Giving more detail of trading conditions, he said: “Key sectors of water (AMP7) and rail (CP6) programmes are now coming on stream more strongly and in line with our expectations of this point in the cycle, although recent strike actions have disrupted some rail workstreams. Transmission demand has been good but HS2 work has been quieter than anticipated as we transition to phase two.
“New non-residential construction has remained soft, however commercial re-purposing of property has emerged as a buoyant alternative. House-building, despite popular commentaries, remains a resilient and important market for us with good long-term prospects.”
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