Vp profits rise to £8.9m

Equipment rental specialist Vp said its preliminary results for the year ending March 2004, published today (Tuesday), showed some excellent individual results with four of its five divisions performing strongly.

According to Jeremy Pilkington, Vp chairman and chief executive, the Group has delivered a very satisfactory performance although Hire Station, its tool hire division, has been a disappointment.

Group turnover was up 11% to £85.5m, while profit before tax rose 19% to £8.9m from £7.5m for the same period last year. 

Turnover at Hire Station was static at £36.5m, and Pilkington said: "We are now in the initial year of a three year plan to invigorate Hire Station."

He added the division has been reorganised with a number of loss making branches closing down which will allow the existing depots to drive revenue up.

Groundforce, the excavation support services division saw profits nearly double to £5.3m from £2.7m for 2003, while turnover rose by 58% to £19.3m.

"This was another outstanding year," said Pilkington. "Acquisitions accounted for 50% of the growth, but increased infrastructure spending also drove the business forward."

Meanwhile, UK Forks, the telehandler rental business posted profits of £1.3m on a turnover of £12.4m. "Although these figures are the same as 2003, it was a solid performance," commented Pilkington. 

Airpac Oilfield Services the supplier of off-shore compressors, and Torrent Trackside the hirer of track repair and renewals equipment, both posted profit and turnover increases.