Vp (VP) H2 2026 earnings summary

Executive summary

• Completed major restructuring of Brandon Hire Station, pivoting to a B2B specialist trade model and reducing exposure to general construction, with a 40% reduction in trading asset base and 400 headcount reduction.

• Delivered resilient full-year results in line with revised guidance despite challenging UK construction and macroeconomic headwinds.

• International segment profit increased 30% year-over-year, now representing about a third of group operating profit, driven by Irish acquisition and infrastructure investment.

• Maintained dividend at GBP 0.395 (39.5p) per share, reflecting confidence in business fundamentals and continuing a 30+ year uninterrupted record.

• Continued investment in a young, high-quality fleet with over GBP 50 million invested.

Financial highlights

• Revenue declined 6% to GBP 358 million year-over-year; UK revenues down nearly 10% to GBP 287.1 million, partially offset by 14% international growth to GBP 71.2 million.

• Adjusted profit before tax fell GBP 9.7 million to GBP 27 million; adjusted EBITDA dropped to GBP 78 million from GBP 90.6 million; net margin reduced from 9.7% to 7.5%.

• Exceptional items totaled GBP 30.6 million, mainly from Brandon restructure and CPH acquisition earnout.

• Net debt increased by GBP 10.4 million to GBP 149 million, reflecting exceptional outflows and continued investment.

• Cash generation remained strong but lower than prior year due to reduced trading performance.

Outlook and guidance

• Expecting improvement in returns and ROCE in FY 2027, targeting a return to 15%.

• Anticipate continued growth in international markets, especially Ireland and Germany, and positive outlook in infrastructure and specialist markets.

• Forecast for the coming year is balanced across infrastructure, specialist construction, housebuilding, and energy.

• Expect to deliver in line with market expectations for the current year and FY27.

• Medium-term strategic plan to build on strong group foundations.