Strong winter progress boosts Vp’s results

EQUIPMENT HIRE firm Vp expects to report annual results in line with market expectations after it made good progress over the winter period.

The Harrogate-based firm said its UK division has experienced consistent demand from its key infrastructure, construction and housebuilding markets.

The group said the completion of the acquisition of Brandon Hire Group received clearance from the Competition and Markets Authority last month.

Since the it has been working closely with the Brandon Hire team on the integration of the business within the Vp Group and said the process has started well.

The acquisition of Brandon was Vp’s largest acquisition in the history of the group.

It paid a cash consideration of £41.6m plus debt of £27.2m.

Brandon Hire will operate alongside Hire Station and Vp said it will create a new market leading offering in the UK specialist tool hire sector.

In its international division, the group said the offshore oil and gas sector has remained challenging. It said its Asia Pacific-based test and measurement business has continued to perform well.

Analysts at N+1 Singer said in a note: “Vp has issued a positive year end trading update highlighting further progress over the winter period.

“Full year results are expected to be in line with expectations. Divisionally, the UK business has experienced consistent demand from its key infrastructure, construction and housebuilding markets.

“Following the CMA clearance on March 7, the integration of Brandon Hire has started well. Within international, positive progress was made in the test and measurement business in Asia Pacific, but unsurprisingly the oil and gas sector is still challenging.”