Shares in Vp (VP) rose 7 per cent after the equipment rental specialist revealed cash profit growth of just over a fifth last year. With the exception of its portable roadways business, TPA, all divisions enjoyed profit growth during the 2015 financial year. The group, which produces products including scaffolding, lighting and power systems, was buoyed by recovery in the housebuilding and construction sectors.
Vp's Hire Station business, which supplies small tools and specialist equipment for industry and construction, increased its operating profits by more than three-quarters to £8.7m. It opened new sites in London and relocated some of its provincial depots to larger premises to meet increased demand. Similarly, its UK Forks business, which provides rough terrain handling equipment for industry and residential construction, grew its operating profits by more than half to £4m.
Together, these businesses generated around £31m of the £49.3m invested in the group's fleet during the year. Chief executive Neil Stoddart says he expects businesses serving the housebuilding and construction markets to secure a large proportion of the group's capital expenditure this year, too.
Broker N+1 Singer expects adjusted EPS of 53.1p this year, up from 50.2p during FY2015.
VP (VP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 715p | MARKET VALUE: | £287m | |
| TOUCH: | 715-723p | 12-MONTH HIGH: | 730p | LOW: 539p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 278p* | NET DEBT: | 60% | |
| Year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 141 | 12.2 | 23.4 | 10.80 |
| 2012 | 162 | 15.3 | 29.6 | 11.35 |
| 2013 | 167 | 16.4 | 33.6 | 12.25 |
| 2014 | 183 | 18.9 | 39.8 | 14.00 |
| 2015 | 206 | 25.1 | 51.0 | 16.50 |
| % change | +12 | +33 | +28 | +18 |
Ex-div: 9 Jul Payment: 7 Aug *Includes intangible assets of £43m, or 108p a share | ||||
