Ticker: VP. Exchange: LSE www.vpplc.com

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.    

The stars are aligning

We think equipment rental specialist Vp is ideally placed to benefit from a sustainable upswing. Today posting robust H1’21 results (see below) – as evidenced by its 7.6% EBIT margin (vs 15.2% LY), £41m positive cashflow and 10.3% ROCE (14.5% LY), despite suffering a -23.8% sales decline to £142.1m, amidst some of the toughest conditions in a generation.

Our forecasts have been reinstated, delivering a fair value of 900p/share. Meaning that at 775p, we believe the stock is attractively priced. Both in absolute terms and vs peers, trading on FY22 multiples (pre IFRS16) of 13.1x PER, 12.6x EV/EBIT and 5.2x EV/EBITDA.

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