Vp seeing the tentative signs

The Harrogate-based group said it has experienced a period of stability in its markets and demand has been largely as expected.

Updating the market on its trading since it announced final results on June 8, the group said infrastructure markets have generally held up well.

But the group's oil and gas activities have experienced a slower than expected first quarter due to delays on certain projects, but these are now underway.

Vp said it is confident the oil and gas market will continue to offer good prospects going forward.

The group has maintained its focus on cash conservation and it expects to see reduced borrowings in the current financial year.

New banking lines have been agreed and were finalised in July.

Vp said that while it anticipates further challenges ahead, particularly in construction related markets, the trading outlook for the year remains unchanged.

Vp, which has six divisions, said pre-tax profits fell 31 per cent to 14.3m in the year to the end of March.

Revenues fell 15 per cent to 134.2m, but all divisions remained profitable.

Vp has said that looming public sector spending cuts, which are likely to affect infrastructure spending, mean it is cautious over its medium-term outlook.