Vp says back on track after snow hit business

The Harrogate group said market conditions have remained stable despite the snow affecting most of its business.

"Demand, however has subsequently recovered to anticipated levels of activity," said the group. "We expect to report full year results in line with market expectations."

General construction has remained challenging, Vp added, and although it has seen some tentative recovery in demand from house builders, commercial construction remains "very subdued", a feature it expects to continue.

Vp said the regulated infrastructure sector has "held up well". However, the group expects a "hiatus" in water spending when a regulatory period ends. It is seeing good demand from transmission, and a potential improvement in rail. Vp added the oil and gas exploration market is stable, with "improving prospects" in the medium term.

The group said its diversity should stand it in good stead. "The group's outlook for the current year remains unchanged," it said. "We anticipate relative overall stability, with some downward pressure in specific markets. We believe that the group will deliver a very satisfactory result in the current financial year, given the challenging trading environment."

Vp added it continues to invest in its business but is creating strong cash flow, helping keep debt well within covenants.