Vp results “robust” despite end market challenges

Photo: Vp plc

Vp plc has described its half-year results for 2024 as “robust” despite challenges in some end markets.

In its results the UK-based company announced revenues of £192.5 million, a 1% increase on the same period in 2023, and a 1% decrease in EBITDA to £47 million.

The company said a slight reduction in revenue in construction was offset by growth in its specialist business.

Housebuilding also saw a decrease, although Vp said it was encouraged by the UK Government’s focus, including targets and progress in planning reform.

It said it has seen growth in infrastructure due to “prospects and external spending commitments” which “provide confidence and where we have continued to invest capex.”

Similarly, the Energy market remains positive, backed up by “growth, strong demand and a good level of project activity.”

The company said it has also benefitted from its involvement in a number of industrial shutdown projects where its specialist divisions had the opportunity to work closely together to support significant and highly specialised customer projects.

Anna Bielby, chief executive of Vp plc, said, “Due to its specialist businesses and diversified revenue streams, the Group has delivered a robust performance in the first half of the year, despite challenging conditions in some end markets.

“In parallel, Vp is progressing well with its refreshed strategy; centralising operations and investing in people. While market headwinds persist in the short-term, management remains encouraged by market opportunities, particularly in areas such as Rail, Water and Transmission.

“These opportunities, alongside strategic progress, a strong financial position and increased investment in the rental fleet, position the Group well for the future.”

In terms of CapEx, the company increased its investment in rental fleet to support growth and transition towards greener solutions with £39 million fleet capex in the period. 

Meanwhile, the company said it had made good progress in its refreshed strategy plans, which will see its specialist divisions work “more closely together to drive growth and to focus on end markets.” 

Looking ahead, the company expects performance for the full year to be in line with market expectations.

However, it added that the upcoming changes to National Insurance and National Minimum Wage will, before mitigating actions, have an impact of more than £4m on the Group in the next financial year.