The equipment rental specialist
Vp plc is a specialist rental business providing products and services to a diverse range of markets including civil engineering, rail, oil and gas exploration, construction, outdoor events and industry, primarily within the UK, but also overseas
Vp is a well established group which has evolved over nearly 60 years of trading from a broadly based plant hire company to a service based group providing equipment rental and associated services to a range of market sectors. Floated on the London Stock Exchange in 1973, Vp now comprises 6 business divisions:- Groundforce, UK Forks, Airpac Bukom Oilfield Services, Hire Station, Torrent Trackside and TPA.

MIDAS SHARE TIPS: Specialist kit helps hire firm Vp recover from fall in profitsBy Joanne Hart
PUBLISHED: 22:34, 8 September 2012 | UPDATED: 22:34, 8 September 2012
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..Equipment rental specialist Vp is forging ahead despite unsettled economic conditions. The company’s record is impressive, the management team is ambitious and the shares should rise.

The firm is also taking City analysts to see some of its operations this Wednesday and a series of meetings with brokers has been arranged over the next few weeks, which should give the stock a further boost.

Vp, originally known as Vibroplant, used to be a standard plant hire business renting out diggers, dumpers, rollers and similar equipment to the construction sector. Plant hire is a sizeable industry in Britain but competition is fierce and profit margins are low.


Diversity: Vp, headed by Jeremy Pilkington, still runs a tool hire arm
Founded in 1954 by Fred Pilkington, the company is still chaired by his grandson, Jeremy and the family retains a 51 per cent stake, so they are deeply committed to its success. In 1997, Neil Stothard was brought in as finance director and he became managing director seven years later.

During that time, he and Pilkington junior reshaped the business entirely, changing the name and moving the company out of standard rental and into six specialist areas: oilfield services, rail plant, temporary roads, rough terrain fork-lifts, tool hire, including specialised safety equipment, and shoring solutions – supplying tools and materials to contractors when they are digging trenches and making large excavations

These business divisions were not entirely new, but they have moved centre-stage over the past decade. The company has invested heavily in their development and aims to build long-term relationships with customers, offering advice and guidance, rather than simply renting out equipment in bulk.
In every case, however, the group offers top quality products, buying the best machines it can and selling them once they are past their best.

Last year alone, Stothard spent £32million on a new fleet but also made £7million by selling off older equipment. The most profitable division within the group is the shoring business, Groundforce. This is a market leader in Britain and is starting to expand on the Continent.
Clearly, economic conditions are tough, particularly in southern Europe. Elsewhere, however, construction activity continues and Vp’s equipment is safer and more technically advanced than most alternative products.

Jeremy Pilkington founded Vp in 1954
The roads division, TPA, is another British market leader that is moving across the Channel. This business rents out temporary roadways and walkways for events such as Wimbledon, the golf Open Championship and summer festivals. These modular surfaces are also used in the construction industry, providing access to sites while building work takes place.

Stone or timber roads are usually made when temporary access is needed on the Continent and Vp’s offer is cheaper, more flexible and more environmentally friendly as it can be easily removed when no longer needed.

The oil services subsidiary is performing well, too. One of the oldest businesses in Vp’s portfolio, it began helping oil explorers in the North Sea but now operates worldwide, renting equipment to the oil, gas and liquefied natural gas sectors.

The group also offers consultancy, providing engineers on site to advise on the best equipment to use and how to use it. Vp has not been immune to the recession.

Profits fell from £20.1million in 2009 to £12.2million in 2011. However, the group’s broad spread of businesses has made it more resilient than many other plant hire firms and in the year to March 31, 2012, profits rose to £15.3million. Analysts expect £17.1million in profits for the current year, rising to nearly £18million next year.

The company pays a reasonable dividend too, maintaining payments at 10.8p from 2009 to 2011 and increasing the payout to 11.35p for the most recent financial year. Dividends are expected to continue rising over the next couple of years.

Midas verdict: Vp shares are 304p and most brokers believe they are worth considerably more. The group is conservatively run and well funded, and the large family shareholding provides reassurance that investors will be well looked after whenever possible. Buy.

Good 6% rise perhaps re post 2.

Vp PLC : Analyst site visit to UK Forks, Ground...
HUG
Press Release 12 September 2012

Vp plc
("Vp" or "the Group")

Analyst site visit to UK Forks, Groundforce and Hire Station

Vp plc, the equipment rental specialist, announces that the Group will today be hosting an analyst site visit to three of its six divisions, UK Forks and Groundforce in Morley followed by Hire Station in Castleford.

During this visit, no new material information will be made available, other than that which was provided at the Group's Interim Management Statement and AGM statement on 20 August 2012 and 18 July 2012 respectively.

Neil Stothard, Managing Director of Vp plc, commented:
"This site visit is an excellent opportunity for the Group to present a representative selection of Vp divisional activities to a City audience."

Copies of the presentations being given will be made available from 3.00 pm on the Company's investor relations website www.vpplc.com

Analyst Presentation
Sept 12th

http://www.vpplc.com/media/81852/site_visit_-_12_september_2012_-_hire_station.pdf

House broker Brewin believes there is a chance the Harrogate firm will beat March 2013 earnings forecasts. We will get a better idea when half-year results are published in November.

Vp plc, the equipment rental specialist, will be announcing its Interim Results
for the six months ended 30 September 2012 on Wednesday, 28 November 2012.

Interim results Wednesday, making steady progress.

Vp PLC: Interim Results
HUG
Press Release
28 November 2012

Vp plc

("Vp" or the "Group")

Interim Results

Vp plc, the equipment rental specialist, today announces its Interim Results for the six months ended 30 September 2012.

Highlights


Profit before tax and amortisation increased 6% to £11.0 million (H1 2012: £10.4 million)

Revenues of £84.0 million, 2% ahead of equivalent prior year period (H1 2012: £82.7 million)

Return on capital employed 13.2% (H1 2012: 13.1%)

Capital investment in the fleet of £12.6 million

Acquisitions of £4.1 million

Tender offer for shares completed at £7.8 million

Net debt increased to £50.1 million (FY 2012: £40.4 million)

Interim dividend increased to 3.25 pence per share

Solid balance sheet with strong operational cash flow of £18.6 million

Strong individual divisional performances

Jeremy Pilkington, Chairman of Vp plc, commented:

"The Group has delivered another extremely positive set of results despite continued unsettled market conditions. The strength of these figures highlight the benefit of Vp's well established strategy of focusing on specialist sectors where the Group enjoys strong market positions. We have continued to invest in our people, systems and fleet to ensure sustainable performance over the medium and long term."

- Ends -

A buy in this weeks IC. Only rated on 11 times forecast earnings , a discount to the rental sector, and offer a decent dividend well covered by earnings .

:-))

Vp expects to meet full year forecasts
Thu 14 Feb 2013

VP. - VP

Latest Prices
Name Price %
VP 338.00p 0.00%

FTSE All-Share 3,344 -0.03%
FTSE Small Cap 3,707 -0.05%
Support Services 5,564 +0.04%

LONDON (SHARECAST) - Rental equipment specialist Vp said trading through the winter period has been satisfactory and expects to report full year profits in line with market expectations.

The group, which provides products and services to oil and gas exploration markets, civil engineering, rail and construction, added that while there has not been a tangible improvement in overall market conditions, most sectors have remained stable.

Vp which operates six divisions: Groundforce, UK Forks, Airpac Bukom, Torrent Trackside, TPA and Hire Station, said sustained demand from regulated infrastructure markets has continued to provide a solid base for the group, in what has otherwise been soft general construction demand.

Otherwise in oil and gas, the lower levels of liquefied natural gas activity have continued into the second half as expected.

"However the board is pleased to report that we have secured a number of LNG contracts in the Asia Pacific region which will contribute in the new financial year," it said in a statement.

"Optimisation of the performance of Vp's existing specialist activities remains the board's priority and the group continues to invest in support of secured opportunities as they arise."

Final results - Tuesday 4 June

Vp PLC : Final Results

Press Release 4 June 2013


Vp plc, the equipment rental specialist, today announces its Final Results for the year ended 31 March 2013.

Highlights
•
Profit before tax and amortisation increased 9% to £17.4 million (2012: £16.0 million)

•
Basic earnings per share pre-amortisation improved 15.3% to 35.47 pence

•
Revenues of £167.0 million, 3% ahead of prior year (2012: £161.5 million)

•
Operating margins increased to 11.9% (2012: 11.5%)

•
Return on average capital employed improved to 13.3% (2012: 13.0%)

•
Modest increase in net debt to £45.3 million (2012: £40.4 million) after funding:-
◦
Capital investment in the fleet of £22.5 million

◦
Acquisitions of £4.1 million

◦
Tender offer for shares completed at £7.8 million


•
Final dividend proposed of 9.0 pence per share, making a total of 12.25 pence for the full year (2012: 11.35 pence), an increase of 8%

•
Solid balance sheet with strong operational cash flow of £39.8 million


Jeremy Pilkington, Chairman of Vp plc, commented:
"The Group has delivered another strong performance with increased profits, margins and return on capital employed. Whilst the economic background still contains significant uncertainties and challenges, this set of results again demonstrates the Group's ability to continue to deliver value for shareholders even within a relatively unsupportive trading environment.

"Each of our businesses continues to work hard to uncover opportunities for investment and growth and we believe that the Group has positive momentum moving into the new financial year. We look forward to another year of progression as we maintain our focus on delivering consistent, quality and sustainable returns over the long term."

- Ends -

VP rallies as full year earnings shine
Tue 04 Jun 2013


VP rallies as full year earnings shine LONDON (SHARECAST) - Rental equipment specialist Vp delivered a strong full year performance with improved profit, margins and dividend and said positive momentum continued into the new financial year.

The group, which provides products and services to oil and gas exploration markets, civil engineering, rail and construction, said profit before tax and amortisation increased 9% to £17.4m for the year ended March 31st 2013 compared to £16.0m in 2012. Basic earnings per share pre-amortisation improved 15.3% to 35.47p.

Revenues increased 3% to £167.0m while operating margins increased to 11.9% from 11.5% previously. Net debt increased to £45.3m from £40.4m after it invested in its fleet and made acquisitions of £4.1m.

Chairman Jeremy Pilkington said: "Whilst the economic background still contains significant uncertainties and challenges, this set of results again demonstrates the group's ability to continue to deliver value for shareholders even within a relatively unsupportive trading environment."

"Each of our businesses continues to work hard to uncover opportunities for investment and growth and we believe that the group has positive momentum moving into the new financial year. We look forward to another year of progression."

A final dividend of 9.0p per share has been proposed, giving a total of 12.25p for the full year, an increase of 8%.

Shares in the group jumped 5.99% to 358.25p at 11:30 in London

VP PLC (VP.:LSE) set a new 52-week high during today's trading session when it reached 358.25. Over this period, the share price is up 43.38%.

Shares today -

VP’s opportunity to play catch-up


Better-than-expected full-year results from construction equipment rental group VP (VP.) have boosted stock by 6% to 358.25p, yet the small cap could rise further still before it catches up with its rivals.

Companies that hire equipment to construction and infrastructure providers have all enjoyed strong share price appreciation over the past few years, thanks to a mixture of self-help measures and better demand. Both these factors have contributed to improved earnings and regular upgrades from analysts as they forecast higher and higher profits.

VP, alas, has been left in the shadows compared to its larger peers Speedy Hire (SDY) and Ashtead (AHT). The main reasons are that Speedy is adding greater service capabilities, so it is winning large contracts; and Ashtead is benefiting from a large presence in the US where there is structural shift from owning to renting equipment among construction companies.

VP - Comparison Line Chart (Rebased to first)

The charts (above and below) illustrate how VP has lagged its peers. Broker N+1 Singer says this outcome is undeserved and reckons the company’s intrinsic value is more than 400p.

ahtVP - Comparison Line Chart (Rebased to first)

VP has today reported a 9% increase in pre-tax profit to £17.4 million, slightly ahead of £17.1 million analyst expectations. Of particular note is the improvement in operating margins from 11.5% to 11.9% and return on capital employed moving to 13.3% from 13%.

The company says margins are getting better due to better cost control and ‘ensuring that the revenue we are generating is of the best quality.’ It has chosen to withdrawn from certain contracts after declaring them to have sub-optimal margins. This explains a small reduction in revenue at TPA as it decided various outdoor events work wasn’t worth doing.

Aside from TPA, the five other business divisions all recorded revenue gains. In fact, TPA did grow profits despite lower revenue. Yet the only disappointment on the profit side was Airpac Bukom, the oil and gas division. This was a result of tough comparative figures from the previous year where VP had large contract which ran its course.

The company says oil and gas work is now picking up, particularly Airpac Bukom’s core skill of providing support to well testing. It flags particular success in the Middle East including Kurdistan where a number of high value rentals were obtained for well test projects.

Shares last year described VP as ‘an ideal stock to buy and tuck away for long-term capital appreciation and income’. While it may lack the obvious catalysts driving Speedy Hire and Ashtead, there is reason to stay positive as VP continues to broaden its earnings streams. Non-hire work is gathering pace including training as part of Hire Station, its tools business. And the Groundforce arm has a team of engineers in Leeds who provide drawings and designs for large excavation projects. VP sees this ‘highly-valued’ skill as important for a push into mainland Europe.

A buy in this weeks IC - VP shares still looking cheap.

VP shares trade on 10.5 times forecast earnings, compared with 15 times for the wider rental sector. True, the company doesn't have the same stellar growth rates as peers, but that discount is still too wide.

Down 10% today

Ex-Dividend
10 Jul 13 VP PLC [VP.] (9 p)

Vp PLC : AGM Statement

HUG






Press Release 23 July 2013

Vp plc
("Vp" or the "Group")

AGM Statement

Vp plc, the equipment rental specialist, announces that at the Group's Annual General Meeting held earlier today, all resolutions put to Shareholders by the Board were duly passed.

Speaking at the Annual General Meeting, Jeremy Pilkington, Chairman, commented:

"The Group has started the new financial year well and in line with our expectations. The first quarter's trading has been positive, and with solid revenue growth compared with the prior year, the business is well positioned to deliver another good performance this financial year."

- Ends -

How odd ?
Not the same as ADV


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