Vp’s strong forecast despite the bad weather

Equipment hire group Vp has shrugged off December’s heavy snowfall and said it expects to report “very satisfactory” annual results.

The Harrogate-based group, which leases equipment ranging from telescopic lifting machines to temporary aluminium roadways to the construction, rail, oil and gas industries, said overall demand for its services has remained relatively consistent but added it believes a sustained economic recovery is some way off.

Vp said despite December’s snowfall, the impact on its business was “largely neutral”. As a result it expects to report results in line with market expectations.

Hide Ad
Hide Ad

Shares in the group edged up 1p to 229p, a 0.4 per cent increase.

The group also announced the appointment of Allison Bainbridge as finance director. The former finance director of Kelda Group, parent company of Yorkshire Water, joins Vp next month.

She will work alongside group managing director Neil Stothard and replaces Mike Holt, who left the group late last year.

Chairman Jeremy Pilkington said: “We are delighted to welcome Allison to the team at Vp. Allison is a proven financial leader with a breadth of experience which will be invaluable to the future development of the group.”

Hide Ad
Hide Ad

Vp added it has continued to invest in the business, but debt levels remain well within its committed facilities and banking covenants.

Despite its doubts about the wider economy, Vp added it expects opportunities to appear in the future. “Our strong balance sheet will enable us to embrace these as they arise,” it said.

“Our resilient business model of providing specialist equipment services to a diverse range of markets remains a significant asset.”

The business last year renewed its debt facilities on “favourable terms” for three years. It now has facilities of £65m, plus room for another £15m of debt if it needs.

This gives it substantial firepower for acquisitions, and Vp hopes to resume purchases at some point over the next couple of years.