Vp Plc (LON:VP.), the rental group that supplies equipment to the oil amp; gas, railway and construction industries, said today it was on course to deliver a “very satisfactory” financial result this year. Reporting on trading in the period since its interim results announcement last November, the company said that overall demand for its services had remained broadly the same as in the first half and had been largely unaffected by the severe weather in December. It now expects to report full year results in line with market expectations. The Vp share price responded with a marginal rise to 228.5p.
Vp noted that while a sustained economic recovery was some way off, its exposure to a broad range of markets meant it was well insulated from volatile conditions. Indeed, the company said its strong balance put it was in an ideal position to take advantage of anticipated opportunities in the market as they arise. Last November, Vp reported interim revenues of £71.1m, unchanged year-on-year, and pre-tax profits down by £0.8m to £8.6m. Since then it has continued to invest in the business as opportunities have been secured and debt levels have been kept under control. It has also continued to concentrate on optimising the performance of its existing business streams. In a note to investors, broker Northland Capital Partners described the update as “a reassuring statement considering the difficult weather conditions during the period and the overall mixed trading picture. On 2012 consensus estimates the shares trade on 9.4x earnings yield a respectable 4.7%.”
Separately, Vp announced the appointment of Allison Bainbridge to the role of Group Finance Director. Bainbridge previously held a number of senior financial positions within Kelda Group, the parent company of Yorkshire Water. She takes up her new post on March 1, 2011. Jeremy Pilkington, the chairman of Vp, said: “We are delighted to welcome Allison to the team at Vp. Allison is a proven financial leader with a breadth of experience which will be invaluable to the future development of the group.”
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