Vp PLC Vp Plc : Final Results -2-
June 04 2015 - 2:00AM
UK Regulatory
Year ended Year ended
31 March 2015 31 March 2014
Revenue GBP44.4 million GBP42.3 million
Operating Profit before amortisation GBP8.9 million GBP7.9 million
Investment in Rental Fleet GBP5.7 million GBP8.0 million
Groundforce reported another excellent result with profits increasing to
GBP8.9 million (2014: GBP7.9 million) on revenues 5% ahead of prior year
at GBP44.4 million.
Within the UK, demand from the Water Industry (AMP5) was maintained
throughout the year, as contracts were closed-out prior to the
commencement of the next investment programme (AMP6). Housing offered
extra opportunity, as new sites were opened and demand also filtered
through from the commercial property sector, where groundworks for fresh
developments began, particularly in the South East. New depot openings
in Aberdeen and East Anglia have widened the distribution network for
the UK during the year.
Piletec progressed well completing the integration of Mr Cropper which
relocated into enhanced operational locations. U Mole delivered
improvement with new products being introduced. The markets in Ireland
remain weaker, but the business grew revenues, as it leveraged the two
depots opened at the end of last year.
The operation in Germany remains relatively small as the business seeks
to gain market share. It has however, provided the platform to
undertake a number of major contracts throughout Europe, including a
basement car park in Paris and major harbour work in Bremerhaven. It
also acted as the facilitator to a high profile contract in Qatar for an
existing European client, which was commenced during Q4. Whilst
technically challenging, this project readily illustrated the quality of
solutions offered by the Groundforce engineered products.
Capital investment on rental equipment was GBP5.7 million (2014: GBP8.0
million).
We anticipate that trading levels in the coming year will be stable as
improved construction demand balances the challenge presented by the
slowdown during the transition between AMP cycles in the water sector.
However, with Groundforce trading across a broad customer base, in a
variety of sectors, it is well placed for further progress.
AIRPAC BUKOM
Equipment and service providers to the international oil and gas
exploration and development markets
Year ended Year ended
31 March 2015 31 March 2014
Revenue GBP21.5 million GBP 20.2 million
Operating Profit before amortisation GBP2.8 million GBP 2.0 million
Investment in Rental Fleet GBP5.3 million GBP 5.8 million
Airpac Bukom reported improved results with profits increasing to GBP2.8
million (2014: GBP2.0 million) on revenues 6% ahead at GBP21.5 million
(2014: GBP20.2 million). The division's result was achieved against an
increasingly challenging market environment, driven by the deterioration
in the price of oil in the latter part of 2014. As a consequence,
revenues in the second half softened.
The LNG (Liquified Natural Gas) sector continued to offer opportunities
in the Asia Pacific region. Services were provided in South East Asia
for the testing of the manufactured modules for two major LNG contracts
in Australia, APLNG and Ichthys. Manufacture of the former completed
during the financial year although our engagement in the project has
continued with the testing of the installation phase on Curtis Island in
Australia. Progress was also made on the installation phases of the
QCLNG and GLNG contracts, also on Curtis Island.
Rentals to the well testing market generally suffered in the second half,
as the impact of the oil price drop took hold. Airpac Bukom secured a
number of long term contracts which have provided some resilience and
the division has maintained a presence in some early production projects
in the Middle East. However, most geographical regions were affected by
reductions in capital investment by the major oil companies.
Capital expenditure on equipment was GBP5.3 million (2014: GBP5.8
million) as the division continued to update the rental fleet to meet
customer demand.
There is little doubt that the oil and gas industry is experiencing
extremely testing conditions which are likely to remain in the immediate
term. Volumes and prices are being affected across most sub-sectors and
management has reshaped the business to suit. As a consequence, the
year ahead will be challenging, but we remain confident that
opportunities will continue to be available, albeit reduced in number.
HIRE STATION
Small tools and specialist equipment for industry and construction
Year ended Year ended
31 March 2015 31 March 2014
Revenue GBP77.0 million GBP66.2 million
Operating Profit before amortisation GBP8.7 million GBP4.8 million
Investment in Rental Fleet GBP20.1 million GBP13.4 million
Hire Station continued to enjoy increasingly supportive markets
throughout the year and this enabled the business to once again deliver
record revenues of GBP77.0 million up 16.0% on the prior year. Profits
increased strongly to GBP8.7 million (2014: GBP4.8 million).
The tools business made further excellent progress delivering double
digit revenue growth and a strong increase in profitability. New
locations were opened in London to support growing activity in this
region and we have relocated a number of provincial depots to larger
premises. Our focus on availability, quality and compliance ensures
that our customers continue to get a first class service. This
philosophy has generated loyalty and a greater share of wallet from our
customer base.
ESS Safeforce had another record year with growth in all of its key
revenue streams. The depots at Port Talbot, Exeter and Dublin, which
opened in the previous year, all flourished and delivered profits well
ahead of schedule. Our trading branch in Rotterdam got off to a
satisfactory start with a number of significant contract wins, which
provided the backdrop for accelerated investment in both resource and
fleet.
The MEP business, which supplies specialist press fitting and electro
fusion equipment, also has the largest fleet of low level access
machines in Europe. Servicing predominantly the M&E sector, the
business has been very busy during the year expanding its footprint with
new locations in London, where the greatest demand for product exists,
as well as investing in established locations to support new customer
wins. During the year, we supplied to projects in Finland and the
Netherlands, supporting UK contractors, with further opportunities going
forward.
A positive construction sector, together with secured opportunities, led
to the business increasing investment in the fleet to GBP20.1 million
(2014: GBP13.4 million). Hire Station continues to have one of the
youngest fleets in the market. This investment, together with our
efficient workshop procedures, has meant that product availability has
given us a competitive advantage as demand has increased.
These record results together with significant investment in the branch
network give Hire Station a strong platform for further profitable
growth in the coming year.
TPA
Rental and installation of portable roadways throughout the UK and
mainland Europe
Year ended Year ended
31 March 2015 31 March 2014
Revenue GBP14.6 million GBP15.8 million
Operating Profit before amortisation GBP1.0 million GBP1.8 million
Investment in Rental Fleet GBP2.3 million GBP1.0 million
TPA experienced a mixed year, as revenues decreased by 8% to GBP14.6
million, with profits reducing to GBP1.0 million (2014: GBP1.8 million).
In the UK, demand from the construction and rail markets in particular
showed upside, but this could not offset the contract delays and
reductions in the transmission sector following the break-up of the
Electricity Alliances. This, together with an unseasonally dry winter,
served to create a market spike in product availability depressing
prices and utilisation.
In Europe, the business progressed on two fronts. Firstly, growth from
an increased customer base provided greater revenue stability and
secondly, the development of a more robust management structure in
Germany, which will underpin future growth prospects for the region.
Capital expenditure in rental fleet increased to GBP2.3 million (2014:
GBP1.0 million), including investment in new products specific to
targeted markets.
The outlook for TPA for the coming year is improved, with an anticipated
uplift from the transmission sectors in the UK and further positive
development of the European activity.
TORRENT TRACKSIDE
Suppliers of rail infrastructure portable plant and specialist services
to Network Rail, London Underground and their respective contractor base
Year ended Year ended
31 March 2015 31 March 2014
Revenue GBP29.9 million GBP22.3 million
Operating Profit before amortisation GBP3.4 million GBP2.8 million
Investment in Rental Fleet GBP4.7 million GBP3.0 million
Torrent Trackside made further good progress in the year with revenues
of GBP29.9 million, up 34% on the prior year, generating profits of
GBP3.4 million (2014: GBP2.8 million)
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