Vp’s AGM statement confirms another period of resilient trading despite varying conditions across the Group’s end markets. This once more reflects the strength of a diversified business model, specialist focus and technical expertise.
Today’s update reinforces the key themes of Vp’s FY26 results, and the Board is confident of performing in line with expectations for the current year. The update also reiterates confidence in the medium-term plan.
Vp is on track to deliver a significant recovery in profitability in the current year, driven in particular by savings from last year’s Brandon Hire Station restructuring, alongside the implementation of a refreshed strategy under new CEO Alice Woodwark.
In our view, a current year P/E rating of 8x (dividend yield ~8%) materially undervalues the quality of the business and its long-term earnings growth potential. We maintain our 750p/ share Fair Value estimate, which equates to an FY28 P/E rating of 12x, in line with the Group’s historic average rating, but only reflecting a partial recovery in earnings.
