Harrogate equipment rental firm Vp plc trades satisfactorily but bracing for virus impact

The Harrogate-based firm said in the UK it experienced a reduction in construction industry related demand in December 2019 ahead of the General Election and this continued into the final quarter of its financial year.

However, the infrastructure and house building sectors by contrast held up well. Trading levels in its international division remained “satisfactory” without any material changes in market demand.

Vp said it is currently “fully engaged” in responding to the challenges posed by the global coronavirus pandemic.

“The health and well-being of our colleagues, our customers and our suppliers is our absolute priority and in this regard we continue to follow the latest Government guidelines,” the firm added.

To date the impact on most of its UK businesses has been relatively limited but revenues have reduced in the latter part of March 2020 and Vp expects this trend to continue.

It has also seen some of its international markets impacted by stringent government action limiting activity to all but essential business.

“Consequently, whilst we anticipate a satisfactory full year result for the group, this will be marginally behind current market expectations,” the firm said.

Vp has total committed facilities of £200m plus an overdraft facility of £7.5m. The facilities include a new £65m loan note finalised in January 2020 which matures in January 2027. Net debt at March 31, 2020 is anticipated to be around £165m leaving “substantial headroom in our facilities”, the firm said.