Vp plc is a specialist rental business providing products and services to a diverse range of markets including civil engineering, rail, oil and gas exploration, construction, outdoor events and industry, primarily within the UK, but also overseas.
29 Sep 2017
On track for further profitable growth
Vp is a specialist rental business providing equipment and services to a wide range of markets including civil engineering, rail, oil and gas exploration, construction, outdoor events and industry, primarily within the UK (88.5% FY17 sales), but also increasingly overseas (11.5%).
If looking for a solid, dependable and well diversified plant-hire specialist, then perhaps look no further than Vp, who navigated the last downturn with real aplomb.
It said yesterday that trading for the first 5 months had been “positive” and consistent “with full year expectations”. An impressive performance, especially given macro concerns over BREXIT, a potentially slowing UK economy, a moribund crude price and unsupportive global geopolitics.
In the UK, “healthy demand” continues to be experienced in infrastructure, construction and housebuilding, augmented by April’s acquisitions of Zenith Survey Equipment (£6.15m) and Jackson Mechanical Services (£3.6). Encouragingly too, the overseas oil/gas division (Airpac Bukom) has also seen stabilisation return in AsiaPac.
As such, we make no change to our forecasts or 890p/share valuation, and look forward to hearing more at the interims on 21 November 2017. Longer term, construction of the UK’s new nuclear reactor at Hinkley Point (£17.6bn), a 3rd runway at Heathrow (£17.8m), HS2 (£55.7bn), London’s super-sewer and Crossrail 2 should all prove supportive too.