TIDMVP.
Press Release 27 November 2009
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 2009.
Highlights
* Revenues of GBP71.1 million (H1 2008 restated: GBP85.1 million)
* Profit before tax, amortisation and exceptional items of GBP10.0
million (H1 2008: GBP13.9 million)
* Reduction in net capital investment to GBP2.4 million (H1 2008:
GBP13.2 million)
* Net debt reduced by GBP11 million to GBP55 million representing
financial gearing of 53%
* Interim dividend maintained at 3.1 pence per share
* All divisions within the Group were cash positive
Jeremy Pilkington, Chairman of Vp plc, commented:
"We are pleased to report very satisfactory results in such a
challenging business environment. Whilst we do see some further
downward pressure and uncertainty in specific markets, we believe
that the diversity of the Group's activities and our financial
strength will enable us to emerge from this downturn in a strong
position. We are confident in the Group's ability to capitalise on
current and future opportunities. "
- Ends -
For further information please contact:
Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423 533 405
jeremypilkington@vpplc.com
Neil Stothard, Group Managing Director Tel: +44 (0) 1423 533 445
neil.stothard@vpplc.com
Mike Holt, Group Finance Director Tel: +44 (0) 1423 533 445
mike.holt@vpplc.com www.vpplc.com
Media enquiries:
Abchurch Communications
George Parker / Mark Dixon Tel: +44 (0) 20 7398 7729
george.parker@abchurch-group.com www.abchurch-group.com
CHAIRMAN'S STATEMENT
Last year, despite the global financial crisis and onset of recession
in the UK, the Group reported an eighth successive year of profit
growth. However, as anticipated, the difficult trading conditions
that were emerging in the second half of the last financial year have
become more pronounced in the current year. Nevertheless, I am very
pleased to report that for the six months ended 30 September 2009,
the Group delivered impressive profits before tax, amortisation and
exceptional items of GBP10.0 million (2008: GBP13.9 million),
underscoring the resilience of our business model.
Whilst we remain focused on taking advantage of every revenue
generating opportunity, our primary emphasis this year has been on
cash conservation and cost reduction to mitigate the impact on
profitability of declining revenues. Revenues reduced to GBP71.1
million (2008: GBP85.1 million), but cost and fleet management measures
have partially protected the bottom line and helped to deliver
quality earnings.
The Group's mixture of niche markets with exposure to regulated and
outsourcing activity has continued to provide some mitigation against
the worst effects of the recession though trading pressures are being
felt in all of our businesses. We have continued to invest in rental
fleet where opportunities have been secured and the returns are
attractive, but the overall slowing of demand and the longevity of
many of our product lines has enabled us to reduce net capital
investment to GBP2.4 million compared with GBP13.2 million in the same
period last year. No acquisitions were made in the period and all
the divisions in the Group were cash positive. These measures,
combined with rigorous working capital management, have generated
strong operational cash flow. Net debt has reduced by GBP11 million to
GBP55 million representing financial gearing of 53%.
The cost actions taken in the period have created a small redundancy
cost of GBP0.3 million, but crucially, effective asset management has
meant it has not been necessary for the Group to make exceptional
write downs to hire fleet. In addition, the strength of the balance
sheet, which has improved further even in these exceptionally
challenging times, has allowed the Group to generate all its funding
requirements organically without having to contemplate equity support
from shareholders.
Given these very satisfactory results achieved in such a challenging
business environment and taking into account the strong financial
position of the Group, your Board is declaring a maintained interim
dividend of 3.1 pence per share payable on 6 January 2010, to
shareholders registered at 11 December 2009.
Groundforce
Groundforce reported good profits despite experiencing a decline in
revenues for the first time in many years. Early cost management
responses protected profits to a significant extent. The AMP4
utility infrastructure investment programme is now drawing to a close
and although AMP5 is scheduled to start in early 2010, it is prudent
to anticipate the customary hiatus between the two programmes. In
the meantime, Groundforce is deriving useful work from the Olympic
Games sites and other major infrastructure projects. Export sales
have performed well.
UK Forks
UK Forks hire revenues fell by 44% compared with the same period last
year. The business has continued to reduce its cost base and fleet
size to better match current levels of activity but given the scale
of loss of revenues, it was unable to avoid incurring a small trading
loss. The residential construction market appears to have stabilised
now, albeit at a very low level. Revenues, as elsewhere within the
Group, are currently strongly dependent on PFI and public sector
supported investment activities. Private sector development remains
quiet.
Airpac Bukom
Airpac Bukom advanced both revenues and profits within the period
despite the volatility in the oil price which led to deferment of
some well test and maintenance projects. Airpac Bukom has continued
to bid successfully for contracts around the world and has recently
secured the contract for the supply of compression equipment to the
major Pluto Liquified Natural Gas (LNG) contract in Australia. The
recent recovery in the oil price has created a more positive
background for the oil and gas exploration sector, which should
continue to be a supportive market over the medium to long-term.
Torrent Trackside
Torrent Trackside, in line with many suppliers to the rail market,
had a disappointing first half as a result of the slow release of
track renewal contracts. Torrent has excellent relationships with
the specialist rail contractors and remains well positioned within
its market. We look forward to improving work flows in the near
future and believe rail remains an attractive sector for the Group.
TPA
TPA delivered a very satisfactory profit result despite the deferment
of some National Grid infrastructure work. Improved operational cost
management helped to protect margins and we anticipate stronger
demand from the Grid going forward. TPA Germany delivered another
solid performance and prospects look positive for the second half.
Seasonality remains a significant feature of this business although
operational efficiencies should help to defend the profits earned in
the first half.
Hire Station
Hire Station experienced a difficult first half's trading
particularly within its mainstream tool business where pressure on
revenues and prices were greatest. Despite this background the
business has continued to secure new customers on a long-term basis.
The specialist safety equipment and press fitting tool activities
have traded more strongly. Significant cost savings have been made
in Hire Station, and even in this very difficult market it has been
able to deliver a level of profits which demonstrates the
responsiveness and quality of the business model.
Outlook
The specialist markets we serve were affected by recession later than
mainstream construction but inevitably they are now experiencing both
volume and pricing pressure.
Currently our markets are relatively stable, albeit at much reduced
levels of activity. Whilst we do see some further downward pressure
and uncertainty in specific markets, we believe that the diversity of
the Group's activities and our financial strength will enable us to
continue to deliver satisfactory results and to emerge from this
downturn in a strong position.
The quality of the results delivered in the first half illustrates
why we are confident in the Group's ability to deal with market
challenges, and, more positively, to capitalise on opportunities both
now and in the future.
Jeremy Pilkington
Chairman
27 November 2009
Condensed Consolidated Income Statement
For the period ended 30 September 2009
Note Six months to Six months to Full year
30 Sep 2009 30 Sep 2008 to
31 Mar
2009
Restated Restated
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Revenue 3 71,113 85,133 157,470
Cost of sales (51,195) (58,637) (114,331)
Gross profit 19,918 26,496 43,139
Administrative (9,761) (11,019) (18,617)
expenses
Operating profit 3 10,157 15,477 24,522
Net financial (1,339) (1,950) (3,687)
expenses
Profit before
amortisation, 9,957 13,944 21,744
exceptional items
and taxation
Amortisation of (975) (417) (909)
intangibles
Exceptional items 4 (164) - -
Profit before 8,818 13,527 20,835
taxation
Income tax expense 5 (2,475) (3,653) (5,701)
Net profit for the 6,343 9,874 15,134
period
Basic earnings share 7 15.42p 23.55p 36.41p
Diluted earnings 7 15.11p 22.64p 35.30p
share
Dividend per share 8 3.10p 3.10 p 10.80p
Dividends paid and 1,299 1,290 4,505
proposed (GBP000)
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 September 2009
+-------------------------------------------------------------------+
| | Six months | | | | |
| | to | | Six months | | Full year |
| | | | to | | to |
|-------------------+-------------+---+-------------+---+-----------|
| | 30 Sep 2009 | | 30 Sep 2008 | | 31 Mar |
| | | | | | 2009 |
|-------------------+-------------+---+-------------+---+-----------|
| | (unaudited) | | (unaudited) | | (audited) |
|-------------------+-------------+---+-------------+---+-----------|
| | GBP000 | | GBP000 | | GBP000 |
| | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| Profit for the | 6,343 | | 9,874 | | 15,134 |
| period | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| Other | | | | | |
| comprehensive | | | | | |
| income: | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Actuarial losses | | | | | |
| on defined | - | | - | | (1,882) |
| benefit pension | | | | | |
| scheme | | | | | |
| | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| Tax on items | - | | - | | 527 |
| taken direct to | | | | | |
| equity | | | | | |
| | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| Effective portion | | | | | |
| of changes in | 997 | | (239) | | (3,154) |
| fair value of | | | | | |
| cash flow hedges | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Foreign exchange | (26) | | 17 | | 274 |
| translation | | | | | |
| difference | | | | | |
| | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| Other | 971 | | (222) | | (4,235) |
| comprehensive | | | | | |
| income | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Total | 7,314 | | 9,652 | | 10,899 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
+-------------------------------------------------------------------+
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2009
+-------------------------------------------------------------------+
| | Six months | | Six months | | Full year |
| | to | | to | | to |
|-------------------+-------------+---+-------------+---+-----------|
| | 30 Sep 2009 | | 30 Sep 2008 | | 31 Mar |
| | | | | | 2009 |
|-------------------+-------------+---+-------------+---+-----------|
| | (unaudited) | | (unaudited) | | (audited) |
|-------------------+-------------+---+-------------+---+-----------|
| | GBP000 | | GBP000 | | GBP000 |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Total | 7,314 | | 9,652 | | 10,899 |
| comprehensive | | | | | |
| income for the | | | | | |
| period | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Tax movements to | - | | (287) | | (285) |
| equity | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Share option | 273 | | 638 | | 442 |
| charge in the | | | | | |
| period | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Net movement | | | | | |
| relating to | | | | | |
| Treasury Shares | 3 | | (1,928) | | (3,166) |
| and shares held | | | | | |
| by Vp Employee | | | | | |
| Trust | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Dividends to | (3,212) | | (3,214) | | (4,505) |
| shareholders | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Change in equity | 4,378 | | 4,861 | | 3,385 |
| during the period | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| | | | | | |
| Equity at the | 77,152 | | 73,767 | | 73,767 |
| start of the | | | | | |
| period | | | | | |
|-------------------+-------------+---+-------------+---+-----------|
| Equity at the end | 81,530 | | 78,628 | | 77,152 |
| of the period | | | | | |
+-------------------------------------------------------------------+
Included in the above changes is a credit to reserves of GBP997,000
(September 2008: GBP239,000 charge, March 2009: GBP3,154,000 charge) in
the Hedging Reserve. There were no changes in Issued Share Capital
or Share Premium.
Condensed Consolidated Balance Sheet
At 30 September 2009
+---------------------------------------------------------------------+
| |Note|30 Sep 2009| | | | |
| | | | |31 Mar 2009| |30 Sep 2008|
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | Restated| | Restated|
| | |(unaudited)| | (audited)| |(unaudited)|
|------------------------+----+-----------+-+-----------+-+-----------|
| | | GBP000| | GBP000| | GBP000|
|------------------------+----+-----------+-+-----------+-+-----------|
|Non-current assets | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Property, plant and| 6 | 102,730| | 107,889| | 108,529|
|equipment | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Goodwill | | 33,797| | 33,889| | 37,530|
|------------------------+----+-----------+-+-----------+-+-----------|
|Intangible assets | | 6,376| | 7,351| | 7,568|
|------------------------+----+-----------+-+-----------+-+-----------|
|Total non-current assets| | 142,903| | 149,129| | 153,627|
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Current assets | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Inventories | | 4,007| | 5,463| | 5,251|
|------------------------+----+-----------+-+-----------+-+-----------|
|Trade and other| | 29,520| | 32,814| | 37,979|
|receivables | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Cash and cash| | 712| | 551| | 2,204|
|equivalents | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Total current assets | | 34,239| | 38,828| | 45,434|
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Total assets | | 177,142| | 187,957| | 199,061|
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Current liabilities | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Interest bearing loans| | (448)| | (681)| | (1,013)|
|and borrowings | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Income tax payable | | (2,502)| | (2,291)| | (4,086)|
|------------------------+----+-----------+-+-----------+-+-----------|
|Trade and other payables| | (27,493)| | (30,472)| | (39,425)|
|------------------------+----+-----------+-+-----------+-+-----------|
|Total current| | (30,443)| | (33,444)| | (44,524)|
|liabilities | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Non-current liabilities | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Interest bearing loans| | (55,042)| | (65,707)| | (65,902)|
|and borrowings | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Employee benefits | | (1,814)| | (3,194)| | (1,321)|
|------------------------+----+-----------+-+-----------+-+-----------|
|Deferred tax liabilities| | (8,286)| | (8,433)| | (8,659)|
|------------------------+----+-----------+-+-----------+-+-----------|
|Total non-current| | (65,142)| | (77,334)| | (75,882)|
|liabilities | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Total liabilities | | (95,585)| | (110,778)| | (120,406)|
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Net assets | | 81,557| | 77,179| | 78,655|
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Equity | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|Issued capital | | 2,309| | 2,309| | 2,309|
|------------------------+----+-----------+-+-----------+-+-----------|
|Share premium | | 16,192| | 16,192| | 16,192|
|------------------------+----+-----------+-+-----------+-+-----------|
|Hedging reserve | | (2,609)| | (3,606)| | (691)|
|------------------------+----+-----------+-+-----------+-+-----------|
|Retained earnings | | 65,638| | 62,257| | 60,818|
|------------------------+----+-----------+-+-----------+-+-----------|
|Total equity| | 81,530| | 77,152| | 78,628|
|attributable to equity | | | | | | |
|holders of parent | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
| | | | | | | |
|------------------------+----+-----------+-+-----------+-+-----------|
|Minority interest | | 27| | 27| | 27|
|------------------------+----+-----------+-+-----------+-+-----------|
|Total equity | | 81,557| | 77,179| | 78,655|
+---------------------------------------------------------------------+
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2009
Note Six months Six months Full year
to to to
30 Sep 2009 30 Sep 2008 31 Mar
2009
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Cash flows from operating
activities
8,818 13,527 20,835
Profit before taxation
Adjustment for:
Pension fund contributions
in excess of service cost (2,253) (113) (204)
Share based payment 273 638 442
charges
Depreciation 6 9,536 9,268 18,964
Amortisation of 975 417 909
intangibles
Net financial expense 1,339 1,950 3,687
Profit on sale of (2,021) (2,190) (3,825)
property, plant and
equipment
Operating cash flow before 16,667 23,497 40,808
changes in working capital
and provisions
Decrease/(increase) in 1,456 (361) (348)
inventories
Decrease/(increase) in
trade and other 3,294 (4,676) 741
receivables
Decrease in trade and (1,808) (3,505) (6,073)
other payables
Cash generated from 19,609 14,955 35,128
operations
Interest paid (1,260) (2,017) (3,711)
Interest element of (84) (103) (199)
finance lease rental
payments
Interest received 11 29 28
Income tax paid (2,411) (2,231) (5,991)
Net cash from operating 15,865 10,633 25,255
activities
Investing activities
Proceeds from sale of 5,201 5,959 10,799
property, plant and
equipment
Purchase of property, (10,034) (20,405) (34,211)
plant and equipment
Acquisition of businesses 17 (4,985) (6,013)
and subsidiaries (net of
cash and overdrafts)
Net cash from investing (4,816) (19,431) (29,425)
activities
Cash flows from financing
activities
Sale/(purchase) of 3 (1,928) (3,166)
Treasury Shares and own
shares by Employee Trust
Repayment of loans (14,500) (15,543) (20,401)
New loans 4,000 24,500 29,000
Payment of hire purchase (398) (1,031) (1,216)
and finance lease
liabilities
Dividends paid 8 - - (4,505)
Net cash from financing (10,895) 5,998 (288)
activities
Net increase/(decrease) in 154 (2,800) (4,458)
cash and cash equivalents
Effect of exchange rate 7 17 22
fluctuations on cash held
Cash and cash equivalents 551 4,987 4,987
at beginning of period
Cash and cash equivalents 712 2,204 551
at end of period
Notes to the Condensed Financial Statements
1. Basis of Preparation
Vp plc (the "Company") is a company domiciled in the United Kingdom.
The Condensed Consolidated Interim Financial Statements of the
Company for the half year ended 30 September 2009 comprise the
Company and its subsidiaries (together referred to as the "Group").
This interim announcement has been prepared in accordance with the
Disclosure and Transparency Rules of the UK Financial Services
Authority and the requirements of IAS34 ("Interim Financial
Reporting") as adopted by the EU. The accounting policies applied
are consistent for all periods presented and are in line with those
applied in the annual financial statements for the year ended 31
March 2009, which were prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the EU, except
as described below.
The following new standards and amendments to standards have become
effective from 1 January 2009:
* IAS 1 (revised), "Presentation of Financial Statements".
The most significant change within IAS 1 (revised) is the
requirement to produce a statement of comprehensive income setting
out all items of income and expense relating to non-owner changes
in equity. There is a choice between presenting comprehensive
income in one statement or in two statements comprising an income
statement and a separate statement of comprehensive income. The
Group has elected to present an income statement and a separate
statement of comprehensive income. In addition, IAS1 (revised)
requires the statement of changes in shareholders' equity to be
presented as a primary statement.
* Amendments to IFRS 2, "Share Based Payments", clarifies
the treatment of cancelled options, whereby if a grant of equity
instruments is cancelled the Group shall account for the
cancellation as an acceleration of vesting and shall recognise
immediately the amount that would have been recognised over the
remainder of the vesting period. The effect of this for the six
months period to 30 September 2009 was not material.
* IFRS 8, "Operating Segments" replaces IAS 14, "Segment
reporting" and requires the disclosure of segment information on
the same basis as the management information provided to the chief
operating decision maker. The adoption of this standard has not
resulted in a change in the Group's reportable segments.
* An amendment to IAS 16, "Property, Plant and Equipment",
classifies proceeds from the sale of ex rental assets as revenue.
As a result revenue and cost of sales recognised in the
consolidated statement of income have increased by GBP3,264,000 for
the six months to 30 September 2009, GBP3,529,000 for the six months
ended 30 September 2008 and GBP6,525,000 for the year ended 31 March
2009.
The interim announcement was approved by the Board of Directors on 26
November 2009.
The Condensed Consolidated Interim Financial Statements do not
include all the information required for full annual Financial
Statements.
Subject to the restatement for hindsight adjustments referred to
below and the amendments to the standards mentioned above, the
comparative figures for the financial year ended 31 March 2009 are
extracted from the Company's statutory accounts for that financial
year. Those accounts have been reported on by the Company's auditors
and delivered to the Registrar of Companies. The report of the
auditors was (i) unqualified, (ii) did not include a reference to any
matters to which the auditors drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a
statement under section 237(2) or (3) of the Companies Act 1985.
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and various
other factors that are believed to be reasonable under the
circumstances; these form the basis of the judgements relating to
carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only
that period, or in the period of the revision and future periods if
the revision affects both current and future periods.
The Balance Sheet at 31 March 2009 and 30 September 2008 has been
restated to reflect minor hindsight adjustments on acquisitions made
in that year.
2. Risks and Uncertainties
The risks and uncertainties for the Group have not changed from those
disclosed in the last statutory accounts. In particular the Group
comprises six businesses serving different markets and manages the
risks inherent to these activities. The key external risks include
general economic conditions, competitor actions, the effect of
legislation, credit risk and business continuity. Internal risks
relate mainly to investment and controls failure risk. The Group
seeks to mitigate exposure to all forms of risk where practicable and
to transfer risk to insurers where cost effective. The diversified
nature of the Group limits the exposure to external risks within
particular markets. Exposure to credit risk in relation to
customers, banks and insurers is managed through credit control
practices including credit insurance which limits the Group's
exposure to bad debts via an aggregate first loss policy which covers
a significant proportion of the Group's accounts receivable.
Business continuity plans exist for key operations and accounting
centres. The Group is an active acquirer and acquisitions may
involve risks that might materially affect the Group performance.
These risks are mitigated by extensive due diligence and appropriate
warranties and indemnities from the vendors.
The net debt position of the Group and current loan facilities are
set out in Note 9. The Company will open renewal negotiations with
the banks before year end relating to the GBP50 million facility that
expires in November 2010. However, the Company meets with its
existing bankers, and other banks, on a regular basis in the ordinary
course of business and has discussed its future borrowing needs and
no matters have been drawn to its attention to suggest that renewal
may not be forthcoming on acceptable terms.
Taking into account these risk mitigation actions and the treasury
management policies described in the 31 March 2009 accounts, the
Group's exposure to market, liquidity and credit risk is considered
by the Board to be within normal parameters and represents an
acceptable level of risk.
3. Summarised Segmental Analysis
+-------------------------------------------------------------------+
| | Revenue | | Operating Profit |
|----------------+------------------------+---+---------------------|
| | Sept | | Sept 2008 | | 2009 | 2008 | |
| | 2009 | | | | | | |
|----------------+--------+---+-----------+---+--------+--------+---|
| | | | Restated | | | | |
|----------------+--------+---+-----------+---+--------+--------+---|
| | GBP000 | | GBP000 | | GBP000 | GBP000 | |
|----------------+--------+---+-----------+---+--------+--------+---|
| Groundforce | 17,217 | | 21,182 | | 5,092 | 5,587 | |
|----------------+--------+---+-----------+---+--------+--------+---|
| UK Forks | 5,685 | | 10,073 | | (297) | 1,535 | |
|----------------+--------+---+-----------+---+--------+--------+---|
| Airpac Bukom | 8,157 | | 7,442 | | 2,028 | 1,538 | |
|----------------+--------+---+-----------+---+--------+--------+---|
| Torrent | 5,129 | | 6,595 | | 6 | 506 | |
| Trackside | | | | | | | |
|----------------+--------+---+-----------+---+--------+--------+---|
| TPA | 9,345 | | 10,930 | | 2,434 | 2,504 | |
|----------------+--------+---+-----------+---+--------+--------+---|
| Hire Station | 25,580 | | 28,911 | | 2,033 | 4,224 | |
|----------------+--------+---+-----------+---+--------+--------+---|
| | 71,113 | | 85,133 | | 11,296 | 15,894 | |
|----------------+--------+---+-----------+---+--------+--------+---|
| Amortisation | | | | | (975) | (417) | |
|----------------+--------+---+-----------+---+--------+--------+---|
| Exceptional | | | | | (164) | - | |
| items | | | | | | | |
|----------------+--------+---+-----------+---+--------+--------+---|
| | | | | | 10,157 | 15,477 | |
+-------------------------------------------------------------------+
4. Exceptional Items
During the period the Group made a profit of GBP113,000 from the
disposal of a freehold property and incurred GBP277,000 of employment
termination costs.
5. Income Tax
The effective tax rate of 28.1% in the period to 30 September 2009
(30 September 2008: 27.0%) reflects the standard rate of tax of 28%
as adjusted for estimated permanent differences for tax purposes and
adjustments to prior year provisions.
6. Property, Plant and Equipment
Sept 2009 Sept 2008 Mar 2009
GBP000 GBP000 GBP000
Carrying amount 1 April 107,889 100,868 100,868
Additions 7,590 19,170 31,027
Acquisitions - 1,528 1,680
Depreciation (9,536) (9,268) (18,964)
Disposals (3,180) (3,772) (6,974)
Effect of movements in exchange rates (33) 3 252
Closing carrying amount 102,730 108,529 107,889
The value of capital commitments at 30 September 2009 was GBP1,516,000
(31 March 2009: GBP3,213,000).
7. Earnings Per Share
Earnings per share have been calculated on 41,123,633 shares (2008:
41,922,500) being the weighted average number of shares in issue
during the period. Diluted earnings per share have been calculated
on 41,977,858 shares (2008: 43,618,604) adjusted to reflect
conversion of all potentially dilutive ordinary shares. Basic
earnings per share before the amortisation of intangibles and
exceptional items was 17.42 pence (2008: 24.27 pence) and was based
on an after tax add back of GBP820,000 (2008: GBP300,000). Diluted
earnings per share before amortisation of intangibles and exceptional
items was 17.06 pence (2008: 23.33 pence).
8. Dividends
The Directors have declared an interim dividend of 3.10 pence (2008:
3.10 pence) per share payable on 6 January 2010 to shareholders on
the register at 11 December 2009. The dividend proposed at the year
end was subsequently approved at the AGM in September and therefore
accrued, but was not paid in the period (2008 paid: nil). The cost
of dividends in the Statement of Changes in Equity is after
adjustments for the interim and final dividends waived by the Vp
Employee Trust in relation to the shares it holds for the Group's
share option schemes together with dividends waived in relation to
treasury shares.
9. Analysis of Net Debt
As at Cash As at
1 Apr 09 Flow 30 Sep 09
GBP000 GBP000 GBP000
Cash in hand and at bank less 551 161 712
overdrafts
Revolving credit facilities (65,500) 10,500 (55,000)
Finance leases and hire purchases (888) 398 (490)
(65,837) 11,059 (54,778)
The Group's bank facilities comprise a GBP50m committed five year
revolving credit facility which expires in November 2010, a GBP20m
committed three year revolving credit facility expiring in September
2011 and overdraft facilities totalling GBP10m.
10. Related Party Transactions
Transactions between Group Companies, which are related parties, have
been eliminated on consolidation and therefore do not require
disclosure.
11. Forward Looking Statements
The Chairman's Statement includes statements that are forward looking
in nature. Forward looking statements involve known and unknown
risks, assumptions, uncertainties and other factors which may cause
the actual results, performance or achievements of the Group to be
materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. Except as required by the Listing Rules and applicable
law, the Company undertakes no obligation to update, review or change
any forward looking statements to reflect events or developments
occurring after the date of this report.
Responsibility statement of the directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
* the condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU
* the interim management report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of financial statements; and a description of the principal risks
and uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
By order of the Board
27 November 2009
The Board
The Board of Directors who served during the 6 months to 30 September
2009 is unchanged from that set out on page 14 of the Annual Report
and Financial Statements 2009, with the exception that Barrie
Cottingham retired as a Director at the Annual General Meeting on 8
September 2009.
Independent Review Report to Vp plc
Introduction
We have been engaged by the Company to review the condensed set of
financial statements in the half-yearly financial report for the six
months ended 30 September 2009 which comprises the condensed
consolidated interim income statement, the condensed consolidated
interim statement of comprehensive income, the condensed consolidated
interim balance sheet, the condensed consolidated interim statement
of changes in shareholders' equity, the condensed consolidated
interim cash flow statement and the related explanatory notes. We
have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements.
This report is made solely to the Company in accordance with the
terms of our engagement to assist the Company in meeting the
requirements of the Disclosure and Transparency Rules ("the DTR") of
the UK's Financial Services Authority ("the UK FSA"). Our review has
been undertaken so that we might state to the Company those matters
we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review
work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has
been approved by, the Directors. The Directors are responsible for
preparing the half-yearly financial report in accordance with the DTR
of the UK FSA.
As disclosed in note 1, the annual financial statements of the Group
are prepared in accordance with IFRSs as adopted by the EU. The
condensed set of financial statements included in this half-yearly
financial report has been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the
condensed set of financial statements in the half-yearly financial
report based on our review.
Scope of review
We conducted our review in accordance with International Standard on
Review Engagements (UK and Ireland) 2410 Review of Interim Financial
Information Performed by the Independent Auditor of the Entity issued
by the Auditing Practices Board for use in the UK. A review of
interim financial information consists of making enquiries, primarily
of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us
to believe that the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 September
2009 is not prepared, in all material respects, in accordance with
IAS 34 as adopted by the EU and the DTR of the UK FSA.
Chris Hearld
For and on behalf of KPMG Audit Plc
Chartered Accountants
Leeds
27 November 2009
=--END OF MESSAGE---
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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