Resilient results plus further strategic progress
Vp’s full year results confirm a resilient performance, driven by robust demand from key Infrastructure markets (Water and Transmission) alongside notable strategic progress. The acquisition of CPH has added depth to the Group’s international offering and the business is performing well.Results again demonstrate the strength of Vp's business model, which continues to deliver attractive returns by focusing on specialist activities across a diverse spectrum of end markets. Infrastructure has been the standout performer in the year, offsetting weakness in General Construction and Housebuilding. A positive outlook statement highlights management’s confidence in Vp’s growth potential, and reiterates current year market expectations.
Vp’s valuation remains well below historic levels. A current year P/E rating of 8.8x compares to the Group’s historic average of c.12x, which in our view, more appropriately reflects the Group’s quality, track record and long-term growth opportunity. We consider the dividend a significant attraction, noting Vp’s unbroken 30+ year dividend history and a dividend yield of 6.6%.
We reiterate our 1000p Fair Value estimate (
Vp is involved in rental business. Co. provides products and services to range of end markets including infrastructure, construction, housebuilding and oil and gas. Co. comprises a U.K. and an International Division. Co.'s U.K. division comprised of: Hire Station, which provides tools for industry, construction, and DIY; Torrent Trackside, which is engaged in railway plant; Groundforce, which is engaged in construction solutions; TPA, which is engaged in portable roadways; and U.K. Forks, which is engaged in material handeling. Co.'s International division compsrised of: Airpac Bukom, which is engaged in oildfield services; and TR Group, which is engaged in technical equipment rental.
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