Vp plc (LSE:VP.) reported a statutory loss for the year as challenging conditions across the UK construction and housebuilding sectors weighed on demand for equipment rental services. Despite the weaker performance, the company maintained its dividend, reflecting management’s confidence in the group’s longer-term prospects.
Revenue for the year declined 5.7% to £358.3 million, while the company recorded a pre-tax loss of £7.0 million and a loss after tax of £5.43 million. Lower profitability also resulted in an 18.4% fall in adjusted earnings per share compared with the previous year.
Adjusted EBITDA for the period was £78 million, with gross profit reaching £82.21 million. At the end of the financial year, adjusted net debt stood at £148.9 million.
Management said trading conditions remained particularly difficult in the UK general construction and housebuilding markets, contributing to lower revenue and profit. The group also incurred exceptional costs related to the restructuring of its Brandon Hire Station business, although the programme is expected to deliver operational efficiencies and improved margins over time.
In contrast, Vp’s international operations produced a stronger performance, with profits increasing by 30%, supported by strategic investments and contributions from acquisitions completed in recent periods.
The board maintained the full-year dividend at 39.5 pence per share, highlighting the company’s resilient balance sheet and confidence in future recovery. Looking ahead, management expects trading in fiscal 2027 to be in line with current market forecasts and anticipates improved year-on-year performance, supported in part by the benefits of the Brandon Hire Station restructuring programme.
According to analyst consensus estimates, Vp is expected to generate revenue of approximately £352.1 million and adjusted profit of £33.1 million in fiscal 2027.
More about Vp plc
Vp plc is a UK-based specialist equipment rental group providing products and services to the infrastructure, construction, housebuilding, energy and industrial sectors. Through a portfolio of specialist divisions, the company supplies equipment ranging from site accommodation and tools to rail infrastructure, water management and ground support solutions. Vp operates across the UK and selected international markets, supporting customers on a wide range of engineering and construction projects.
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