Hire firm Vp reports encouraging trading as demand increases

The Harrogate-based firm will hold its Annual General Meeting by webinar at 10am today.

At the AGM, Jeremy Pilkington, chairman of Vp, will tell shareholders: “In my chairman’s statement on 9 June 2020 for the year ended 31 March 2020, I commented that both in the UK and internationally the Covid-19 lockdown had had a severe impact on activity levels across most, but not all, our business streams.

"At the lowest point in April, our revenues were running at around 55 per cent of normal levels.

"In response, we mothballed a number of locations, furloughed employees and initiated a range of other cost saving measures. I am very pleased to report that revenues are now running at over 80 per cent of prior year levels driven by increased demand from our core end markets."

Mr Pilkington will say that as demand has returned, over two thirds of furloughed employees have now returned to work and many of the mothballed locations have re-opened. He will tell investors: "We expect this trend to continue over the coming months.

"Activity in infrastructure, housebuilding and construction markets is positive and improving, but some areas such as the civil engineering sector have been slower to recover."There are early signs that AMP 7, HS2 and Hinkley Point projects may lead the way in this regard."

The firm said that cost management has been "excellent" and debt has reduced by £22m since March 31, to £138m at the end of June.

"Whilst many challenges remain, we are positive about the longer term outlook for the business and we look forward to returning towards historic levels of trading during 2021,” Mr Pilkington will tell shareholders.