Vp (VP) Trading Update summary

Trading performance and market conditions

• Delivered a solid first half performance despite challenging macroeconomic conditions, with particular strength in Germany and Ireland.

• Infrastructure activity in Transmission remains strong, especially in Germany, while Water prospects are positive but first-half revenue is lower due to AMP7 to AMP8 transition.

• Rail activity levels are subdued due to a slow start to Network Rail's CP7, but medium-term prospects remain positive.

• Specialist Construction continues to perform well, but General Construction faces ongoing challenges.

• Housebuilding performance improved due to operating model changes; Energy projects are expected to be weighted towards the second half.

Financial outlook and strategic initiatives

• Full-year performance is anticipated to be in line with market expectations, with revenue and profit modestly weighted to the second half.

• Analyst consensus for 2025/2026: revenue of £386.1m, profit before tax and certain items of £37.3m, and pre-IFRS 16 net debt of £137.3m.

• Strategy focuses on a digital roadmap, simplifying operations, and improving customer experience.

• Recovery plan for Brandon Hire Station is progressing well and expected to complete by year-end.

• The business model is described as resilient and diverse, with a robust balance sheet and growing pipeline of opportunities.

Sector and business highlights

• Operates in niche sectors across Infrastructure, Construction, Housebuilding, and Energy in the UK and overseas.

• Integrated rail solutions are provided through a central team, leveraging multiple business units.

• Environmental and social impact is guided by core values and a responsible business framework.