Vp PLC Trading Update (1533B)
October 06 2020 - 2:00AM
UK Regulatory
TIDMVP.
RNS Number : 1533B
Vp PLC
06 October 2020
Press Release 6 October 2020
Vp plc
('Vp' or the 'Group')
Trading Update
Vp plc, the equipment rental specialist, announces the following
update on trading since the Annual General Meeting held on 23 July
2020.
Over recent months the Group has continued to focus on
rebuilding business activity back to pre-Covid levels, whilst at
the same time giving top priority to the health and wellbeing of
our colleagues, customers and other stakeholders.
Group revenues have continued to improve, although the initial
impact from the re-opening of existing sites has slowed and the
business has become more reliant on new projects starting. Group
revenues are now running at circa 85% of pre-Covid levels.
In response to the downturn in trading, the Group initially
mothballed about 120 locations but we are pleased to report that
over 100 of those are once again fully operational and are
responding to the growing demand from our customer base as they
themselves have returned to work. However, the re-alignment of
capacity to better reflect current levels of demand has required us
to merge or close 17 branches and regrettably make approximately
150 positions redundant across our various businesses, in the UK
and internationally. The costs of these branch closures and the
redundancies will be recognised as an exceptional charge in the
current financial year ending 31 March 2021.
The Group has continued to demonstrate excellent cash management
and net debt has reduced further to GBP118.7 million at 30
September 2020, which compares with GBP159.7 million at 31 March
2020, an improvement of GBP41.0 million. A sustained period of
strong cost control, reduced capital expenditure and excellent
working capital management has delivered this impressive net debt
improvement.
Markets are generally stable and infrastructure work, in
particular, should be supportive as the likes of the AMP7, HS2 and
Hinkley Point programmes start to gain momentum. We do however
remain slightly cautious with regard to the short to medium term
prospects as we await evidence of a recovery in confidence and the
commencement of new projects. In addition we also remain conscious
of the fact that the Covid pandemic is yet to be fully under
control.
The longer term outlook for the Group remains positive and we
are proactively identifying organic growth opportunities, focused
particularly within those of our businesses already achieving
pre-Covid levels of trading.
We would also like to take this opportunity to thank all of our
colleagues for the strenuous efforts that they have made over
recent months under the most challenging and unusual
circumstances.
- Ends -
For further information:
Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423
533 400
Neil Stothard, Chief Executive www.vpplc.co.uk
Allison Bainbridge, Group Finance Director
Media enquiries:
Buchanan
Henry Harrison-Topham / Jamie Hooper / Tel: +44 (0) 20 7466
George Beale 5000
Vp@buchanan.uk.com www.buchanan.uk.com
Notes to Editors
Vp plc is a specialist rental business providing products and
services to a diverse range of markets including infrastructure,
construction, housebuilding and oil and gas, both in the UK and
overseas.
The Group comprises a UK and an International division:
UK
Groundforce
Excavation support systems and specialist products for the
water, civil engineering and construction industries primarily in
the UK, but also in the Republic of Ireland and mainland
Europe.
Brandon Hire Station
Tools and specialist products for industry, construction and
home owners.
Torrent Trackside
Infrastructure equipment and services for the railway renewals
and maintenance industry.
TPA
Portable roadway access solutions to the transmission, outdoor
events, construction and utility sectors in the UK, the Republic of
Ireland and mainland Europe.
UK Forks
Rough terrain material handling equipment for the housebuilding,
general construction and industrial markets.
International
Airpac Bukom Oilfield Services
Equipment and service providers to the international oil and gas
exploration and development markets.
TR Group
Specialist rental of test & measurement, communications and
audio visual equipment in Australia, New Zealand and Malaysia.
Further information is available at www.vpplc.com/investors
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