“In excellent shape” as the recovery continues
Vp, an equipment rental specialist who said today that it was “trading in line expectations and making excellent progress…. despite some areas (eg commercial property, outdoor events, oil & gas) still not back to historical norms. With H1 revenues coming in at 96% of pre-Covid levels (Est £179.1m vs £186.6m H1’20) vs 94% in H2’21 & 76% H1’21.Vp is not only tightly managing costs, but also materially enhanced its operating leverage (eg depot rationalisation) during the pandemic, and is “in excellent shape to capitalise” as the economy rebounds.
HS2 is ‘going like a train’ (eg Groundforce), housebuilding is buoyant (eg Brandon Hire Station & UK Forks), overseas markets are improving (eg TR) and RMI is robust - with both rail (CP6 eg Torrent Trackside) and Water (AMP7) set to add further momentum in H2. Longer term too there’s an enormous amount of work coming down the track. Not least fibre-to-the-home, offshore wind, Hinkley Point & the Lower Thames crossing.
Consequently, we retain our forecasts and £11.30/share valuation. Alongside reiterating that Vp’s through-cycle durability justifies a sector premium, reflecting its consistent returns, adoption of all-things digital, and exposure to systemically important verticals such as water, power, renewables, telecoms & rail.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.