Vp says rentals quieter during winter period

Vp, the equipment rental specialist, has reported that its winter trading period has been seasonally quieter as expected.

The group has felt the impact of “deteriorating economic conditions”.

The damage has not blown the business off course, however, and Vp expects to deliver a “satisfactory result in the forthcoming financial year relative to current market conditions”.

In a trading update published this morning, Vp said: “We expect that most sectors will have a challenging year ahead, particularly commercial construction and house building.

“The group's focus on a broad range of specialist rental activities should provide [us with] a degree of resilience.

“We anticipate more supportive conditions from the regulated markets in transmission, water, rail and also from publicly funded construction projects.

“As a result of the decline in the price of oil, the immediate prospects for the oil and gas exploration sector have become more muted, although we believe that this sector offers good prospects over the medium term.”

Vp’s bank gearing is well within the capacity of its existing facilities and their associated covenants. This is not expected to change.