Vp plc shows revenue and profit growth despite backdrop of economic pressures

The company has grown both revenue and profit by six per cent in the six months to September 2022, recording £21.5m before tax profit, up from £20.2m in the same period last year.

In a statement, Group chairman Jeremy Pilkington said: “I am very pleased to report interim results which reflect a period of continuing recovery and demonstrate the enduring strength of the Vp business and the maintenance of our industry leading returns.

“We have emerged in good shape from a period of great disruption, and our continued recovery once again demonstrates the resilience of our business model.”

The group’s directors have declared an interim dividend of 11.00 pence per share, which will absorb an estimated £4.363 million.

The group’s UK division delivered a “very satisfactory” performance, which it notes was driven by infrastructure and a resilient house building sector.

Its international division revenues also increased by 28 per cent, while operating profits doubled

Speaking of pressures which the company has faced, Chief Executive Neil Stothard said: “The biggest challenges, as with many companies around the UK, have been those relating to inflation.

"We've seen price increases in our supply chain, which have been the most significant for some considerable time, and we’ve seen that not only in the equipment we buy to rent out to our customers, but also in servicing the business generally, whether it be transportation costs or temporary labour costs.

“Those pressures, I believe, are easing slightly,” he added, “Its a good financial performance and good quality returns and on the back of that.”

Mr Stothard noted that due to current headwinds, the group had been forced to raise its prices in some area, but that such changes had been met with understanding by clients.

The group also noted that it has continued to make “good progress” on its delivery of sustainable fleet solutions, and remains on track with its targets for reducing fleet emissions.

Current trading for the group is in line with the Board’s expectations for the full year.