VP announces set of strong results as profits jump

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VP plc, the equipment rental specialist, has announced a strong set of year-end results, with all six of its divisions showing year-on-year growth.

Pre-tax profits jumped by 16 per cent and revenues increased by 10 per cent to £183.1m.

The company, which is headquartered in Harrogate, also reported an 18 per cent increase in earnings per share to 42p.

A proposed final dividend of 10.4p per share made a total of 14p for the full year – up 14 per cent.

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.”

Managing director Neil Stothard said the company’s housebuilding-related activities benefited from strong demand in that sector, while other divisions had seen slower growth because the general construction sector was “nowhere near full recovery yet”.

Its oilfield equipment arm, Airpac Bukom, stood to gain from opportunities in the well test and LNG markets, and its portable rail equipment division, Torrent Trackside, had had an “excellent year” in a buoyant rail market.

“There’s an amalgam of opportunity, most of which are fairly small, but which cumulatively make for a sound platform for the business over the coming year,” he said.

The results were welcomed by the City as the share price rose by 6 per cent and brokers reiterated ‘buy’ recommendations.