VP Plc: Yorkshire firm says performance has improved in its Brandon Hire Station division after closures
Yorkshire-based equipment rental specialist, Vp Plc, has said that performance has improved in its Brandon Hire Station division, after the firm announced a string of closures late last year.
In November, Vp announced that it planned to close around 60 of its Brandon Hire Station sites across the UK, leading to the loss of roughly 400 jobs.
In an update to the London Stock Exchange today, Vp told investors: “Performance in the Group’s Brandon Hire Station division has improved following last year’s restructure, despite continued challenges in the general construction market.”
“As expected, some exceptional costs relating to the restructure have been recognised in this financial year.”
It came as Vp said it “remains on course” to perform in line with market expectations in the full year.
The firm said it expects to report revenue of £351.3m, and profit before tax, amortisation and impairment of goodwill, trade names and customer relationships and exceptional items of £32.5m.
In an announcement issued to the London Stock Exchange, Alice Woodwark, chief executive of Vp, said: “The first half of the financial year has again demonstrated the strength and resilience of our diverse business model.
“Momentum in our UK segment increases our second half confidence, where we remain well positioned to take advantage of supportive infrastructure markets, specifically in water and electricity transmission.”
Formerly of Mitie Group, Ms Woodwark took over as chief exec of Vp earlier this year, after former boss Anna Bielby stood down.
Ms Bielby announced last September that she was stepping down from the role.
In its latest update, Vp added that its electricity transmission arm “continues to perform well”, adding that it had seen “encouraging momentum” in its water segment.
Vp said that the rail market also “remains stable”.
The company said its international segment also “continues to perform well”.
Announcing the restructuring of Brandon Hire Station in November, Vp said the company would exit the consumer market, no longer serving retail and walk-in customers.
It said Brandon Hire Station would instead focus on what it described as Vp’s “strategic” and business-to-business customers.
The company cited a challenging general construction market and increases in employee costs as contributing reasons for the string of closures.
It said that its changes would reposition Brandon Hire Station as a “smaller, more focussed and profitable division”.
Vp added in November that it expected the changes to be “materially complete” by the end of the current financial year, adding that it expected expenses of around £22m in the current financial year from the cuts.
The company said payback was expected in around four years from the move.
Vp first acquired Brandon Hire in 2017 in a roughly £69m deal.