Vp equipment rental group makes £11m profit

Vp, the equipment rental group, enjoyed a pre-tax profit of £11m last year (2005), with the contribution from acquisitions taking its turnover to the £100m threshold for the first time.

Vp's net debt mounted to £33m (2004 figure: £2m) as a result of the £36m spend on several acquisitions. Latest financial results (12 months to 31 March 2006) point to a current gearing (ratio of debts:assets) of 54%.

Jeremy Pilkington, chairman, said: "The main challenge is to deliver the promise offered by the businesses we acquired. We are cautiously optimistic of our ability to deliver further progress in the year ahead."

Turning to the performances in Vp's various operating divisions, Pilkington said the highlights of the past year were the profit turnaround at Hire Station and the profit growth achieved by UK Forks.

Hire Station brought home a profit of £1.9m, a welcome recovery in its fortunes: it suffered from a £700,000 loss in 2004. In July, the division expanded as a result of the purchase of ESS Safety Services and Pivotal Training, a non-core business put up to sell by Babcock International.

Hire Station's restructuring costs ran to £500,000. Turnover in the division was 21% higher at £42m.

In November, VP spent £12m on Trax Portable Access, with a further £8m due if TPA performs well. Trading performance during the "slow winter period" was below expectations. There was a £300,000 loss on turnover of £2.5m. However, Pilkington said activity had now picked up and a "satisfactory" contribution is expected at the end of the first full year.