Vp (VP) H1 2026 earnings summary

Executive summary

• Delivered a solid first half performance despite challenging macroeconomic and UK market conditions, with revenue down 2% year-over-year to £188.4m and adjusted profit down 18% to £17.3m, but maintaining a strong financial position and sector-leading ROI.

• Decisive restructuring of Brandon Hire Station to focus on B2B and strategic customers, exiting the consumer market, reducing branches from about 100 to 41, cutting around 400 jobs, and aiming for higher profitability and ROI uplift.

• International growth in Ireland and Germany offset some UK weakness, with CPH acquisition in Ireland outperforming expectations and international segment profit rising from £4.5m to £6.7m.

• CEO transition planned by March 2026, with recruitment process underway to ensure smooth leadership succession.

• Continued investment in rental fleet, digital transformation, and ESG initiatives to support growth and operational efficiency.

Financial highlights

• Group revenue for HY26 was £188.4m, down from £192.5m year-over-year; UK revenue declined by £10m to £152.5m, while international revenue grew by £6m to £35.9m.

• Adjusted profit before tax and exceptional items fell by £3.7m to £17.3m; adjusted EBITDA was £43.0m, down 9% year-over-year.

• Net margin decreased from 10.9% to 9.2% year-over-year; ROACE at 12.8%, down from 14.7%.

• Exceptional items totaled about £22m, mainly from Brandon Hire Station restructuring, with a cash cost of about £16m.

• Interim dividend maintained at 11.5p per share, continuing an uninterrupted 30+ year track record.

Outlook and guidance

• Full-year performance expected to be in line with market expectations, with optimism for H2 and FY2027 driven by infrastructure, water, and rail projects.

• Anticipated improvement in ROI and profitability from Brandon Hire Station restructuring, with a four-year payback and two percentage point ROI uplift.

• Growth in Ireland and Germany expected to outpace UK growth in the short and medium term.

• Board remains confident in delivering consistent returns and long-term value.