Positioned for growth under new leadership

Vp’s FY’24 results confirm a solid performance and an impressively resilient outturn on all key financial metrics. Revenue and adjusted profits are a shade below the prior year, whilst return on average capital employed, the final dividend and year-end net debt all show a year-on-year improvement. The results are in line with our expectations and are, once again, sector-leading.

We nudge our Fair Value estimate up from 1090p to 1110p. We see attractions in a 5.6% dividend yield and significant scope for earnings growth over the medium term as management initiatives take effect and, ultimately, market recovery takes hold.  

Vp’s shares have performed well in recent months (+c.30%) alongside improving sentiment towards UK-focused shares. Despite this, the shares remain attractively valued and trade at a discount to the immediate peer group. In our view, Vp’s consistent outperformance of sector peers and long-term track record of earnings and dividend growth warrant a premium rating.