Vp (VP) H1 2025 earnings summary

Executive summary

• Delivered robust H1/interim performance with revenue of £192.5m and adjusted profit of £21.0m, supported by strong infrastructure and energy demand, despite challenges in construction and housebuilding.

• Maintained a resilient operating model, diverse revenue streams, and over 30 years of uninterrupted dividend payments, with an interim dividend of 11.5p per share.

• Advanced refreshed strategy focused on operational excellence, divisional collaboration, and end market specialization, including centralising key functions and investing in leadership, technology, and sustainability.

• Completed the acquisition of CPH/Charleville Hire & Platform Ltd in October, expanding presence in Ireland and specialist construction markets.

• Full-year performance expected to be in line with market expectations.

Financial highlights

• Revenue increased 1% year-over-year to £192.5m; adjusted profit at £21.0m; adjusted EBITDA at £47.0m; net margin at 10.9%.

• ROACE at 14.7%, reflecting earnings quality and sector leadership.

• Net debt (excluding leases) at £140.4m, mainly due to increased capex and working capital outflows.

• Capex in rental fleet increased to £39m, with over 50% of H1 investment in zero emissions assets.

• Interim dividend maintained at 11.5p per share; DSO improved to 57 days; bad debt write-off reduced to 0.3% of revenue.

Outlook and guidance

• Full-year result expected to meet market expectations, with leverage expected to be around 1.5x net debt/EBITDA at year end.

• Anticipate exceptional costs in H2 and FY26 related to operating model changes and transformation.

• Continued focus on organic growth, M&A, investment in greener solutions, and digital transformation.

• Upcoming National Insurance and Minimum Wage changes to impact costs by ~£4m next year before mitigation.

• Optimistic about future opportunities in infrastructure, water, transmission, and energy markets.