Vp plc - Trading in-line, confidence in FY27 reiterated
Vp has released an in-line trading update this morning, reiterating previous guidance for FY26.Against a challenging macroeconomic backdrop, Vp expects to report adjusted PBT for the year to 31st March ’26 of £26m-£29m, in line with previously rebased guidance and our forecast (£27m).
Whilst only a few weeks have passed since February’s trading update, it has been an eventful period with the onset of the Middle East conflict, oil price spike and a resulting deterioration in business confidence. In this context, an in-line update is reassuring and the outlook for FY27 and beyond is positive, supported by strategic initiatives and an underpinning of demand from committed Infrastructure spending.
Vp’s shares are trading on just 9x P/E for FY26 (which we expect to be a trough earnings year), falling to 8x in FY27. In our view, this is far too low for a high-quality business with significant recovery and long-term growth potential. We maintain our 750p/share 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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