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Vp steps up fleet investment

1 Dec 21 A strong return to profit has enabled plant hire group Vp to accelerate its fleet modernisation programme.

UK Forks is Vp's telehandler hire business
UK Forks is Vp's telehandler hire business

After falling into losses last year, Vp has posted half-year results showing a resurgence in turnover, a return to profit and a doubling in capital spending.

In the six months to 30th September 2021, VP made a pre-tax profit of £18.6m (2021 H1: £6.0m loss) on revenue up 24% to £176.1m (2021 H1: £142.1m). 

Profits before tax, amortisation and exceptional items rose to £20.2m (2021 H1: £8.6m).

Vp is the holding company that includes UK Forks, Groundforce, TPA, Brandon Hire Station, ESS, MEP Hire, Torrent Trackside, Airpac Rentals and (in Australia) TR Group.

During the first half of it financial year, Vp’s invested £31.7m in new equipment, compared to £14.6m during the same period last year.

“The focus has been heavily focused towards eco-friendly, lower emissions solutions including investment in the largest solar powered lighting fleet in the UK rail sector and significant substitution of equipment with battery/cordless models,” said chairman Jeremy Pilkington. “The increased level of demand across our businesses has also allowed us to improve pricing on certain product lines and has encouraged us to place substantial advance orders for H2 2022 to ensure that we have appropriate capacity to meet future customer needs.”

The spending meant that borrowings rose from £119m to nearly £132m, but well within the company’s current borrowing limit of £190.5m.

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MPU
MPU

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