Acquisitions and investments drive growth at Vp

Equipment rental specialist Vp issued its final results for the year ended 31 March on Tuesday, reporting a 16% increase in profit before tax, amortisation and exceptional items to a record level of £40.6m.

The London-listed company claimed 22% growth in revenues to £303.6m, with basic earnings per share, pre-amortisation, increasing 18% to 81.80p.

It proposed a final dividend of 19.2p per share, making a total of 26.0p for the full year - an increase of 18%.

EBITDA before exceptionals was ahead 18% at £84.3m, with the board saying net debt stood at £179.2m, up from £98.9m year-on-year.

That net debt was after the company had funded capital investment in its fleet of £64.9m, up from £57.6m, and acquisitions of £49.7m, as well as assumed debt of £30.5m.

Return on average capital employed was 14.8%, falling from 16.0%.

Statutory profit before tax was £30.8m, up slightly from £30.3m, with statutory earnings per share reaching 61.72p from 60.31p.

“It has been another year of significant progress for the group underpinned by record profits and the acquisition of Brandon Hire, our largest to date,” said chairman Jeremy Pilkington.

“In view of this outstanding set of results, the board is recommending a final dividend of 19.2p per share making a total for the year of 26.0p per share, an increase of 18%.

“We entered the new financial year in excellent shape and whilst there may be market uncertainties, we look forward to the new financial year with confidence.”

Neil Stothard, chief executive of Vp, added that the start to the new financial year had been positive.

“We anticipate that our core UK markets will continue to provide a strong platform for future growth to our UK division.

“Internationally we do see some recovery in the oil and gas segment and a supportive Australian economy.

“We continue to drive positive change and development through the whole of Vp and we remain excited about delivering on those initiatives in the new financial year.”