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VP builds another solid year

Last updated: 14:02 07 Jun 2016 BST, First published: 08:43 07 Jun 2016 BST

A worker building the structure of a house to show the kind of products VP supplies
VP is a specialist rental business which supplies products and services to sectors such as construction and housebuilding

Equipment rental group VP Plc (LON:VP) shrugged off the weakness in the oil markets to post an 11% increase in operating profits.

Infrastructure, house building and construction demand helped offset the problems in energy with operating profits overall at £31.9mln, up from £28.8mln a year before.

“A good spread of markets has always been important to VP,” chief executive Neil Stothard told Proactive.

“It has been demonstrated again that we can absorb one of our markets having a more difficult time and still progress in terms of profitability.”

In the year to March, the firm also saw revenue rise slightly to £208.7mln from £205.6mln in 2015.

“Following last year's record breaking results, the group has continued to make further good progress this year reporting another strong financial performance,” said chairman Jeremy Pilkington.

“We enter the new financial year in good shape, with most end markets offering supportive trading environments and with the prospect of contributions from our acquisitions.”

VP owns and operates six companies, with UK Forks, Groundforce, Torrent Trackside and Hire Station in particular, all reporting solid year-on-year-growth.

The other two companies, TPA and Airpac Bukom, saw profits fall.

VP raised the dividend by 14% to 18.85p for the year.

Shares were up 30p, or 4%, to 740p.

 

--Update: CEO comment and share price--

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