Vp sees strong growth as it powers ahead following the end of lockdown

Equipment hire firm Vp has reported a strong trading performance across all of its businesses amid a significant growth in revenues and market leading profit margins.

Vp said that solid trading is expected to continue given the positive momentum being seen across infrastructure, construction and housebuilding

The Harrogate-based firm was hit hard by the pandemic and the associated lockdowns, but it has seen a strong recovery in trading which has created opportunities for profitable reinvestment in its fleet.

The firm said that its UK division delivered an excellent performance, driven by infrastructure and buoyant house building.

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Revenue jumped 24 per cent to £176m in the six months to September 30 whilst underlying pre-tax profits leapt 135 per cent to £20.2m.

The group said that solid trading is expected to continue given the positive momentum being seen across infrastructure, construction and housebuilding.

It added that current trading is positive and in line with board expectations for the full year.

Jeremy Pilkington, chairman of Vp, said: "I am pleased to report an excellent set of results for the period, reflecting a strong and continuing recovery in all of our businesses and delivery of market leading profit margins.

"Once again Vp has demonstrated the resilience of our distinctive business model and the inherent strength of our businesses.

"Very encouragingly, some of our businesses are already trading in line or ahead of expectations. Where this is not the case, it is generally down to factors such as the longer-term cyclical nature of some of our infrastructure markets and localised supply chain constraints which are impacting elements of the construction sector."

He said the group expects that these markets will recover and this remains an opportunity for further growth.

He added: "In the light of these strong results and our confidence in the future prospects of the group, the board is declaring an interim dividend of 10.5 p per share, reinstating our progressive dividend policy.

"The combination of our financial strength, unique market positions and exceptional team of people will continue to deliver strong results for all stakeholders and we look to the future with much optimism."