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Vp sees margins rise to 16%

27 Nov 14 Equipment hire group Vp has reported what it describes as outstanding financial results for the first half of its financial year.

Vp subsidiary UK Forks invested £5.2m in new telehandlers in the first half of the year
Vp subsidiary UK Forks invested £5.2m in new telehandlers in the first half of the year

For the six months ended 30th September 2014, Vp saw revenues grow 11% to £101.3m (2013: £91.3m) and profit before tax and amortisation increase 27% to £16.2m (2013: £12.8m).

Profit margins improved to 16.0% (2013: 14.0%).

The company also increased capital investment in its rental fleet by 30%, spending £23.9m.

Numbers were boosted by the £5.5m acquisition in July 2014 of the trackside plant and equipment rental business of Balfour Beatty Rail.  Integration of this new business helped Vp’s Torrent Trackside division increase its revenues to £13.0m during the first half (2013: £10.6m) although profits slipped back a little to £1.3m (2013: £1.5m).

Vp’s tool shop chain Hire Station generated £4.8m profits, up 78% from the £2.7m made in the same period last year. Its revenues were up 13% at £36.1m (2013: £31.9m).    

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The  Groundforce division reported operating profits up 7% at £5.0m (2013: £4.6m) on revenues up 8% at £22.6m (2013: £20.8m), benefitting from infrastructure and major civil engineering projects such as Crossrail.

The buoyant house-building market helped generate a 54% increase in profits in the telehandler hire business UK Forks to £2.3m (2013: £1.5m), on revenues up 9% at £9.1m (2013: £8.4m).

Airpac Bukom's profits more than doubled in the period to £1.7m (2013: £0.7m.  Revenues grew by 16% to £11.2m (2013: £9.6m).

Chairman Jeremy Pilkington said: "The board regards these half year figures as an outstanding set of results and this positive start to the new financial year reflects the continuation of the improving trading conditions which the group enjoyed towards the end of last year.  The trading trajectory into the second half of the current financial year provides us with every confidence that the group can deliver a very satisfactory result for the year as a whole."

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