Vp reports 'resilient' first-quarter trading

(Sharecast News) - Vp said in an update on Wednesday that trading in the first quarter of its financial year was "resilient" despite ongoing mixed market conditions, as it reiterated that it expected full-year performance to be in line with market expectations. Chairman Jeremy Pilkington told shareholders at the company's annual general meeting that the group's infrastructure division had performed well, supported by strength in the transmission sector, especially in Germany, and optimism around upcoming opportunities in the AMP8 water investment cycle.

However, he noted that rail activity "continues to be subdued," particularly under Network Rail's CP7 control period.

In the construction division, specialist construction maintained solid momentum in the UK and Ireland despite broader market volatility.

General construction, however, remained under pressure.

The London-listed firm said the recovery plan at Brandon Hire Station, the group's tool hire business, was "on track to materially complete by the end of the financial year".

Performance in Vp's smaller housebuilding and energy end markets was said to be broadly in line with expectations.

"We welcome the UK government's focus on growth, including both its 10-year industrial and infrastructure strategies and hope that this provides much needed positive momentum in the market," Pilkington said.

He added that the group was "making good progress" on its strategy, underpinned by a digital roadmap aimed at simplifying operations, improving the customer experience, and executing a unified go-to-market strategy across the business.

At 1229 BST, shares in Vp were up 2.64% at 583p.

Reporting by Josh White for Sharecast.com.