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Fri February 26 2021

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Double-digit improvement for Vp

5 Jun 14 Plant hire group Vp is feeling confident about the year ahead after reporting profits and revenue growth.

Vp's Groundforce division grew 14% last year
Vp's Groundforce division grew 14% last year

For the year ended 31 March 2014, group revenues increased 10% to £183.1m (2013: £167.0m) and profit before tax and amortisation was up by 16% to £20.1m (2013: £17.4m).

Whilst there was a small contribution from the mid-year Mr Cropper acquisition, the bulk of the increase was organic, with all operating divisions progressing during the year.

Chairman Jeremy Pilkington said: "It has been another highly successful year for the Group with significant progress in revenue, profits, earnings per share and dividends.

“Economic indicators in the UK and mainland Europe now appear more positive than for some time and all businesses within the Group are identifying significant opportunities for growth and investment.

“We believe that our established financial discipline combined with the active pursuit of growth opportunities will continue to deliver quality returns for shareholders. We look forward to the year ahead with confidence."

Return on average capital employed, a key performance indicator at Vp, reached 13.5% (2013: 13.3%) and has now been above the target threshold of 12% in each of the last 10 years, even throughout the worst periods of the recent recession.

Every operating division saw some kind of improvement.

Groundforce profits were £7.9m (2013: £7.8m) from revenues up 14% to £42.3m.

The UK Forks division saw profits grow 19% to £2.5 (2013: £2.1m). Revenue was   £16.3m (2013: £14.1m).

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Airpac Bukom revenues grew 16% to £20.2m although profits were flat at £2.0m.

Torrent Trackside reported 4% revenue growth to £22.3m and profits of £2.8m (2013: £2.2m).

The TPA business increased revenues by 6% to £15.8m and operating profits by 36% from £1.3m to £1.8m.

Hire Station has a particularly good second half and reported revenues up 7% to £66.2m. Profits here were up 11% to £4.8m for the year.

Group managing director Neil Stothard said: “Building on another good year for the group, we expect further positive development both in the UK market place but also in our smaller but growing overseas activities.

“The overall scenario for the markets we support remains positive, with further improvement anticipated in general construction and oil and gas, tempered by potential temporary, but modest slowdown in sectors which have been buoyant in recent times such as water and transmission.

“Consistency of quality in products, services and people is increasingly valued by customers who rightly expect a top level service delivery.  As markets recover, we believe that these factors will further enhance the attractiveness of our specialist service offering.

“We enter the new financial year with excellent business momentum from a strong final quarter and this gives us confidence that Vp remains in a good position to deliver further progress for shareholders in the coming year.”

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