Harrogate-based equipment rental group Vp plc reported flat annual sales and lower profit as the UK construction market remained slow and it wrote off some of the value of its struggling tool rental business. 

The company said group revenue was £368.7 million for the year ended March 31, 2024, down slightly from £371.5 million in the previous year, while adjusted profit before tax and other one-off items fell to £39.7 million from £40.5 million.

Vp wrote off £27.7 million worth of intangible assets at its Brandon Hire Station operation, which it acquired in 2017, “reflecting the challenges faced by the UK General Construction market.”

Including that write off, profit before tax was £2.8 million, down from £30.7 million a year ago.

“Whilst it is never pleasurable to report a reduction in profitability, we believe that under the circumstances, this represents a good result demonstrating once again the ability of our diversified business exposure to deliver resilient profit in spite of localised challenges,” the company said. 

Anna Bielby, Chief Executive of Vp plc, said: “Whilst some economic uncertainty remains, particularly in construction and housebuilding, we remain confident in our ability to react to changes in end markets and take advantage of economic improvements.” 

“We have made considerable progress in FY24 with new leadership and a refreshed strategy. We are excited about the future and have confidence in our ability to both grow the business and drive value through simplifying the way we work.”