Record results for Vp

The Harrogate-based firm said all of its UK businesses delivered strong organic growth supported by solid market demand and carefully targeted investment into its rental fleets.

Vp’s chief executive Neil Stothard said: “We weren’t planning for a General Election, but business levels have stayed resolute since June 23.

“We have seen pre-election slowdowns before and we haven’t this time. There hasn’t been time for people to react.”

Asked if the group will suffer if there is a hung parliament, he said: “It’s into the unknown. The problem with a hung parliament is the lack of decision.

“We have flourished as a business whatever the flavour of the Government has been.”

He was speaking as the group announced a 17 per cent increase in pre-tax profit to £35m in the year to March 31.

Revenue rose 19 per cent to £249m and the group will pay a final dividend of 16p a share, making a total of 22p for the whole year, an increase of 17 per cent which is in line with profit growth.

The group’s finance director Allison Bainbridge said: “We are going from strength to strength.

“We are growing in the right way. We’ve had a mixture of organic growth and growth from acquisitions. It’s a 50/50 split between acquisition and organic growth.”

The group has made some good acquisitions, which have been earnings enhancing.

Chairman Jeremy Pilkington said: “We are not growth dependent on a stream of acquisitions. Acquisitions come along and we look at a lot and discard most of them.”

The group is keen to look at overseas acquisitions and is looking for targets in Australia, New Zealand, Singapore, Malaysia, South America, Germany and the Netherlands.

Vp already has operations in Germany and Holland, where the firm is seen as a local rather than a British company.

“We are seen as German or Dutch,” said Mr Stothard.

“It would work against us if we weren’t.

Mr Pilkington said: “It’s not a nationalistic thing. You employ guys with the language and the social skills that fit the market.”

Asked whether the group will be hit by a lack of EU workers in the future, Mr Stothard said: “We have felt the squeeze in skilled areas - engineers and fitters in manufacturing. We have had an apprenticeship scheme in place since 2008. We take on 25 apprentices a year. We are keeping most of them. They are incredibly impressive.”

Analyst Andrew Nussey at Peel Hunt said: “VP remains one of the better managed UK rental business and its long term track record is impressive. We continue to see upside in the shares given the attractive return on capital employed and specialist market exposures.”

The group said it has made a good start to its new financial year.

“We’ve got some good opportunities,” said Mr Stothard.

“Most of the major projects we’ve secured have started or are slightly delayed. The oil and gas market is still challenged but enquiries are improving.”