Equipment rental firm VP PLC (LSE:VP.) fell over 9% on Thursday after warning profit would be lower this year as conditions in the construction market remain subdued.
Adjusted profit guidance is expected to sit at £37 million this year, the company said in a statement, which would mark a near-7% drop on last year, when the figure also fell.
Non-residential construction activity continued to be subdued, VP warned, while softness has remained in the house building sector as projects under the latest Network Rail control period have progressed slower than expected.
VP chief executive Anna Bielby said the company was encouraged by pledges from Britain’s new government to boost housebuilding.
“However, further clarity and action in these areas is needed to boost confidence and drive investment and activity,” she said.
Shares fell 9.2% to 590p.