Vp (VP) Trading update summary

Financial performance and outlook

• Profit for the current financial year is now expected in the range of £26-29m due to muted activity and market headwinds.

• January saw a disappointingly slow 'return to work' and a slow ramp-up in Q4 activity volumes.

• Growth and strong demand continue in energy transmission, while rail activity remains steady but subdued.

• Meaningful increases in water sector revenues are now expected in FY27, not the current year.

• General construction and housebuilding activity levels remain subdued, with energy sector improvement expected in FY27.

Strategic initiatives and transformation

• Transformation of Brandon Hire Station is progressing, with branch footprint reduced from over 100 to 41 and headcount down by about 400.

• The transformation programme at Brandon is on track for material completion by 31 March.

• Continued implementation of a digital roadmap and harmonisation of systems and processes is underway.

• Operating model changes in housebuilding have improved performance despite subdued activity.

Market positioning and future opportunities

• The group remains confident in its strategy targeting core sectors and leveraging a robust balance sheet.

• Diversity across critical market sectors provides resilience but does not fully offset broader market challenges.

• Significant increase in water sector expenditure (AMP8) is anticipated, with benefits expected in FY27.

• Commitment to growth and operational excellence positions the group to capitalize on future opportunities.