Vp reports “significant growth in operating profits across UK divisions, driven by the strength of certain infrastructure, construction and housebuilding sectors”.
Results for the year to 31st March 2022 show 14% revenue growth to £350.9m (2021: £308.0m) and a return to profit.
Vp made a pre-tax profit of £35.6m, compared to a £2.3m loss the previous year.
Operating profit (before amortisation and exceptionals) in the UK division increased to £41.8m, up from £27.2m in the previous year.
Return on average capital employed recovered to 14.5% (2021: 9.2%).
Fit-out specialist M&S Hire, bought by Vp for £2.8m in November 2021, had performed in line with expectations, the board said.
There were also two significant contract wins near to the end of the financial year. In March Vp was awarded a further renewal to its long-running support contract with the Valero Refinery in Pembrokeshire. Later that month it finalised a five-year exclusive hire partnership with Watkin Jones, with Vp taking ownership of Watkin Jones' in-house plant and tools in an outsourcing arrangement.
Chairman Jeremy Pilkington, who (as previously reported) is looking to sell his majority stake in the listed business, said: "These results represent significant progress across the group, as the business continues its recovery following Covid related impacts and we have seen substantial progress across all key financial metrics.
“We are particularly pleased with the increased investment into the rental fleet which was driven by increased demand and an emphasis on lower emission products. The strong return on average capital employed performance demonstrates the resilience of the group's quality of earnings.”
He added: “Although there are some macro related headwinds from cost inflation and supply chain disruptions, we see significant upside growth opportunities for this year and further ahead. We have every confidence that Vp will continue to deliver sector leading results for all our stakeholders."
There was no news update on the sale of the business. “The Company has launched a formal sale process and further communication with shareholders will be made if and when appropriate to do so. In the meantime, it is 'business as usual' as we stay fully focused on delivering on our plans for the current financial year,” the chairman said.
Got a story? Email news@theconstructionindex.co.uk
