Harrogate’s Vp sees revenues bounce back to 80%

Shares of Harrogate-based equipment rental group Vp plc rose 9% on Thursday after it published an AGM statement saying demand has returned and its revenues are now running at over 80% of prior year levels.

Vp chairman Jeremy Pilkington said: “In my chairman’s statement on 9 June 2020 for the year ended 31 March 2020, I commented that both in the UK and internationally the Covid-19 lockdown had had a severe impact on activity levels across most, but not all, our business streams.  

“At the lowest point in April, our revenues were running at around 55% of normal levels.  

“In response, we mothballed a number of locations, furloughed employees and initiated a range of other cost saving measures.  

“I am very pleased to report that revenues are now running at over 80% of prior year levels driven by increased demand from our core end markets.

“As demand has returned, over two thirds of furloughed employees have now returned to work and many of the mothballed locations have re-opened. 

“We expect this trend to continue over the coming months.

“Activity in infrastructure, housebuilding and construction markets is positive and improving, but some areas such as the civil engineering sector have been slower to recover. 

“There are early signs that AMP 7, HS2 and Hinkley Point projects may lead the way in this regard.

“Cost management has been excellent and debt has reduced by £22 million since 31 March 2020, to £138 million at the end of June 2020.

“Whilst many challenges remain, we are positive about the longer term outlook for the business and we look forward to returning towards historic levels of trading during 2021.”