Vp gets balance right as its broad spread helps to mitigate effect of troubled sectors

The Harrogate-based firm said pre-tax profits rose six per cent to £17.2m in the six months to September 30 and revenues were four per cent higher at £105.1m.

Vp has been boosted by its wide spread so when areas like oil and gas took a tumble following a halving in the oil price over the past 12 months, its strength in areas such as Liquefied Natural Gas and construction buoyed up its finances.

This meant that while Vp’s oil and gas focused business, Airpac Bukom, went backwards, this was mitigated by a strong performance in Liquefied Natural Gas related work.

Group managing director Neil Stothard said: “You play a long game. This follows quite a few years of careful management of the business – making sure we have enough breadth of sector so when one or two sectors are quieter we have the resilience to balance that off.

“In the context of the market and other players in the rental market, these are very good results. We are in very good financial shape.”

Analysts welcomed the results.

Nick Spoliar at WH Ireland said: “After patchy results from some of the quoted rental companies over the summer, Vp’s solid first half results come as a refreshing change, though not a surprise, since the company has built an excellent track record of delivery over a lengthy period.

“The results are aided by a very strong performance from Hire Station, which includes Vp’s tools business, and which raised operating profits by 27 per cent.”

Analysts at N+1 Singer said in a note: “Vp has reported a strong first half performance, confirming the group is on track to deliver another record year.

“Excellent progress has been made in most business areas, more than offsetting the anticipated weakness in Airpac Bukom.

“Vp continues to prove its quality and, in our view, merits a premium rating in a sector that has been dogged by challenges this year.”

Vp increased its interim dividend by seven per cent to 5.35p a share.

The group said the increase reflected its confidence in the medium term.