VP PLC (LON:VP.) has received a £11.2mln fine by the UK Competition and Markets Authority (CMA) regarding a breach of competition by three major suppliers of groundworks products for hire.
The equipment rental specialist said it is an area of activity part of its excavation support systems business, which represents 9% of the group’s turnover.
The firm received a provision of £15.4mln in respect of the investigated matter.
Vp said it “fundamentally” disagrees with the conclusions of the CMA and based on the board's current view of the information available, it plans to appeal to the Competition Appeal Tribunal.
Analysts at Peel Hunt said the CMA ruling was largely expected and said the fine will be reflected into its net debt expectations.
“We would see any share price weakness as an opportunity to add to holdings,” they noted.
Shares rose 4% to 756p on Thursday morning.