Vp confident after resilient full-year performance

(Sharecast News) - Vp reported a resilient full-year performance in line with expectations on Wednesday, supported by solid demand from infrastructure and specialist construction markets. Revenue for the year ended 31 March rose 3% to £380m, though adjusted pre-tax profit fell 8% to £36.7m, reflecting operational investments and subdued activity in some sectors.

The London-listed group said it maintained a sector-leading return on average capital employed of 14.2%, just 30 basis points lower than the prior year.

Adjusted EBITDA edged down 1% to £90.6m, while adjusted earnings per share declined 10% to 67.3p.

Net debt excluding leases increased 11% to £138.5m, with capital expenditure on the rental fleet rising 4% to £65.4m, targeting growth areas such as infrastructure and expansion into Ireland and Germany.

On a statutory basis, profit before tax rebounded to £21.7m from £2.8m a year earlier, with statutory earnings per share reaching 36.6p compared to a loss of 13.4p in 2024.

The board proposed a final dividend of 28p, lifting the total for the year to 39.5p, up 1% and marking over three decades of uninterrupted distributions.

Strategically, Vp said it strengthened its position in the Republic of Ireland with the acquisition of Charleville Hire and Platform in October and launched Vp Rail to offer integrated solutions to the rail sector.

The group also continued its operational overhaul, including centralising functions and enhancing senior leadership in areas such as technology, health and safety, and sustainability.

Current trading was described as solid, with momentum in infrastructure and specialist construction markets offsetting continued economic uncertainty.

The group said it expected performance for the current financial year to meet market expectations.

"We have delivered a resilient performance against a period of varied economic and geopolitical headwinds, with our diverse and increasingly collaborative specialist businesses driving sector leading returns," said chief executive officer Anna Bielby.

"As a result of this performance and our robust balance sheet, we are pleased to propose an improved full year dividend - maintaining our 30+ year uninterrupted track record and aligning with our commitment to deliver long-term sustainable shareholder returns.

"During the year, we continued to make changes to our operating model to capitalise on growth opportunities, including the centralisation of operations and the launch of Vp Rail."

Bielby said Vp entered the new financial year in a "solid position", with strong early momentum in Infrastructure and specialist construction.

"While we are encouraged by the UK government's revitalisation initiatives in housebuilding, construction and infrastructure projects, it is important that we get clarity and certainty around these from the timely publication of its long-term industrial strategy."

At 1032 BST, shares in Vp were up 1.76% at 606.5p.

Reporting by Josh White for Sharecast.com.