For the six months ended 30th September 2019, Vp’s revenues reduced by 3% to £186.6m (2019 H1: £193.2m). Pre-tax profit was down 2% to £23.4m (2019 H1: £23.9m) but profit before tax, amortisation and exceptional items was unchanged at £25.9m.
“Against a backdrop of political and economic uncertainty, we consider these results to be a very satisfactory performance,” said chairman Jeremy Pilkington.
He said: “Infrastructure and housebuilding have remained supportive but commercial construction and civil engineering activity has been a little softer, primarily in the southeast market. In response to this backdrop, we have addressed cost lines and scaled back fleet capital investment accordingly. We are pleased to see operating margins improving from 15.3% to 16.0% as a result of these measures.”
Vp acquired excavator attachment specialist Sandhurst Limited in May 2019 for £3.3m. It now operates alongside the Groundforce foundations business.
“Early results from Sandhurst have been encouraging as it integrates into the group and we look forward to its contribution going forward,” the chairman said.
Jeremy Pilkington, chairman of the company since 1981, summarised: "The group made good progress in the first half of the year against a subdued market backdrop. Despite the ongoing political and economic uncertainty in the UK, our focus on quality of earnings has delivered enhanced operating margins during the period. The board remains confident of a positive full year outcome and looking ahead, we believe we will continue to deliver very satisfactory results for all stakeholders."
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