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Vp enjoys record year

4 Jun 15 Equipment rental group Vp has reported record financials after all but one of its operating divisions recorded growth in revenue and profit last year.

Groundforce revenues topped £44m last year
Groundforce revenues topped £44m last year

For the year ended 31st March 2015, Vp鈥檚 revenue increased 12% to 拢205.6m (2014: 拢183.1m).

Profit before tax and amortisation was up 33% to 拢26.8m (2014: 拢20.1m), while operating profit was up 32% to 拢28.8m.

After shelling out 拢49.3m on capital investment in the fleet and 拢5.5m to buy the trackside plant and equipment rental business of Balfour Beatty Rail, net debt rose from 拢53m during the year to 拢67m.

Chairman Jeremy Pilkington said: "It has been a record breaking year for the group with significant progress made across all key metrics including profits, revenue, earnings per share and dividends.聽 The economic environment in both the UK and globally is more positive than for some time and all Group business divisions are identifying significant growth and investment opportunities for the near and long term future."

"The board believes that Vp's diverse business model coupled with an active pursuit of growth opportunities will help to continue to deliver quality returns for our shareholders.聽 We look forward to the year ahead with much confidence."

Margins increased to 13% (2014: 11%); return on average capital employed improved by 20% to 16.2% (2014: 13.5%) and basic earnings per share pre-amortisation grew 30% to 54.5 pence per share.

At the telehandler hire business, UK Forks, revenue grew 12% to 拢18.2m (2014: 拢16.3m) and profit by 62% to 拢4.0m (2014: 拢2.5m).

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Groundforce, the ground engineering equipment division, saw revenue rise 5% to 拢44.4m (2014: 拢42.3m) and profit for the year rise from 拢7.9m to 拢8.9m.

Tool hire chain Hire Station grew revenue by 16% to a record 拢77.0m, while profit grew even more strongly to 拢8.7m (2014: 拢4.8m).

The rail plant business Torrent Trackside saw revenue leap 34% to 拢29.9m (2014: 拢22.3m), generating a profit of 拢3.4m (2014: 拢2.8m).

Airpac Bukom, the oil and gas business, saw 6% growth in revenue to 拢21.5m (2014: 拢20.2m) and profit reach 拢2.8m, up from 拢2.0m the previous year.

By contrast, Vp鈥檚 portable roadways business, TPA, had a slower year, thanks to an unseasonally dry winter generating much less demand than the previous year, when much of the country seemed to be a quagmire most of the time. TPA revenue slowed 8% to 拢14.6m (2014: 拢15.8m) while operating profit dipped from 拢1.8m to 拢1m.

Group managing director Neil Stothard said: 鈥淢oving into the new financial year, the constituent business units are well positioned to reap the benefits of sustained market demand particularly in general construction, housebuilding and large elements of the infrastructure sector.聽 Oil and gas presents some shorter term challenges, but overall the group continues to be well positioned in markets which are generally supportive.鈥

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