Vp (VP) H2 2024 earnings summary

Executive summary

• Revenue reached £368.7m for FY24, with adjusted profit at £39.7m, reflecting solid performance despite market headwinds.

• Infrastructure and energy markets were strong, offsetting weakness in general construction.

• New CEO and CFO appointments, refreshed executive committee, and simplified management structure implemented.

• Strategy focuses on growth, operational excellence, digital transformation, and ESG integration.

• Continued investment in greener fleet and digital capabilities to drive future growth.

Financial highlights

• Revenue of £368.7m, slightly down from £371.5m in FY23; adjusted profit before tax and amortisation at £39.7m.

• EBITDA at £91.0m, net margin at 10.8%, and ROACE at 14.5%.

• Non-cash impairment of £28m related to Brandon Hire Station.

• Exceptional restructuring costs of £5.8m, mainly from leadership changes and branch closures.

• Net debt reduced by £9.2m to £125.2m, with strong operating cash flows and disciplined capital allocation.

Outlook and guidance

• Started FY 2025 well, with strong project visibility in infrastructure and energy.

• Specialist markets expected to remain resilient, with growth anticipated in infrastructure and energy.

• Construction and house building markets remain subdued; cautious optimism for improvement from strategic actions.

• Expect subdued conditions in construction to persist through the first half of FY 2025.

• Confidence in future performance, leveraging refreshed strategy and digital roadmap.