Vp sees revenues recover to 95% of pre-Covid levels

Shares of Harrogate-based equipment rental group Vp plc rose about 4% on Wednesday after it published a trading update for the period since its interim results were issued on December 7, 2020, showing its revenues recovered to 95% of pre-Covid levels.

The board is pleased to report that the group has traded in line with its expectations despite economic activity in many areas remaining constrained by Covid restrictions,” said Vp.

Vp’s core markets of infrastructure, construction and housebuilding have experienced a positive trajectory over recent months and with the prospect of returning to greater economic normality the board is confident that the recovery will accelerate and become increasingly robust.  

“Revenues recovered to 95% of pre-Covid levels during the period. 

“In the year debt has reduced by 22% from £160 million at 1 April 2020 to £124 million at 31 March 2021 …”

Vp CEO Neil Stothard said: “As we have seen specific markets pick up, we have started to invest again in new equipment to meet demand as the latent capacity of the fleet has been drawn back into productive use.  

“The timing of some of this investment has been accelerated due to hopefully short term supply chain challenges for certain products, relating to both Covid-19 and Brexit disruptions.

“As we enter the new financial year, we are pleased to see revenues returning to 95% of pre-Covid levels and this despite some sectors (such as events and hospitality) remaining closed, infrastructure programmes (such as AMP7 and CP6) not yet fully up to speed and confidence in the general construction market improving but still not fully recovered to pre-Covid levels. 

“Our financial position remains strong having further reduced debt during the period leaving a platform for growth.

 “We look forward to reporting another market leading performance in the UK this year and view the next 12 months with increasing confidence.”