VP delivers 'solid' H1 despite 'challenging' macro conditions

(Sharecast News) - Equipment rental firm VP reported a "solid first half" performance on Friday, against a "challenging macro-economic backdrop". VP said areas of particular strength in the period included activities in Germany and Ireland, where it continued to take advantage of supportive market conditions. Activity levels in transmission were said to have remained "strong", particularly in Germany, while prospects in water remained "extremely positive" and activity levels in rail remained subdued.

In VP's smaller end markets, performance in housebuilding benefited from operating model changes made in the prior financial year, and energy activity levels were said to be "satisfactory", with projects expected to be weighted towards the second half of the year.

Looking ahead, the London-listed group continues to expect its full-year performance to be in line with market expectations of £386.1m in revenues and pre-tax profits of £37.3m, with both revenue and profit expected to be "modestly weighted" towards the second half.

Chief executive Anna Bielby said: "Despite challenges in some of our end markets, the first half of the financial year has again demonstrated the strength and resilience of our diverse business model.

"We remain optimistic about the second half of the financial year and expect to see increased activity levels across areas such as rail and water as long-term investment programmes gain traction, with infrastructure, in particular, being further supported by the UK Government's revitalisation initiatives."

As of 0825 BST, VP shares were up 3.21% at 594.47p.

Reporting by Iain Gilbert at Sharecast.com