Shares of Harrogate-based equipment rental group Vp plc fell as much as 13% on Wednesday after it published a trading update for the 10 months ended January 31, 2026, reporting a “disappointingly muted January ‘return to work’ and a correspondingly slow fourth quarter ramp-up in activity volumes.”
The firm said: “The Board remains confident that the Group, aided by its robust balance sheet and transformation of Brandon Hire Station, and underpinned by a focused strategy targeted at core sectors, is well positioned to take advantage of future market opportunities.
“However, current market headwinds, particularly in construction and water, where we have seen a slower than expected impact from AMP8, have resulted in a disappointingly muted January ‘return to work’ and a correspondingly slow fourth quarter ramp-up in activity volumes. Therefore Vp now expects to report a profit for the current financial year within the range of £26-29m.
“Across the sectors in which we operate, we continue to see growth and strong demand in energy transmission, whilst rail activity remains steady yet subdued.
“We remain positive about prospects in water and confident in our ability to take advantage of the significant increase in expenditure to come in AMP8. However, while we have seen an uptick in design and planning work, we now expect to see meaningful increases in water revenues in FY27 rather than the current financial year. General construction remains subdued, with follow-on implications for activity levels across several Vp businesses.
“In the Group’s smaller end markets, performance in housebuilding has benefitted from operating model changes made in the last financial year but overall activity levels remain subdued. Energy continues to be impacted by macroeconomic factors with increased project activity expected in FY27.
“Against this backdrop Vp continues to deliver on its strategy, including the continued implementation of our digital roadmap alongside further harmonisation of systems and business processes, all of which will drive further opportunities for the Group.
“At Brandon Hire Station, which operates in the general construction market, good progress has been made delivering the transformational activities announced in November, which will result in a smaller, more focused and profitable business. These actions include a reduction in the branch footprint from over 100 to 41 and a headcount reduction of c.400. We remain on track to materially complete the transformation programme at Brandon by 31 March.”
Vp CEO Alice Woodwark said: “Vp remains committed to its strategy of offering a diversified range of specialist equipment and expertise to clients across a portfolio of critical market sectors. While this diversity and breadth gives our business market-leading resilience and opportunity, it is not immune to general trading conditions in construction and delays to major infrastructure programme spend in key sectors.
“Our progress in transforming Brandon, which is on track for completion within the financial year, and our commitment to a strategy of growth and operational excellence position us well to take advantage of future opportunities across our markets.”