Vp plc Reports Resilient Performance Amid Mixed Market Conditions
Why we think this is bad
Despite a 3% revenue growth, Vp plc's financial performance shows concerning trends. The 8% decrease in adjusted profit and 10% decline in adjusted EPS indicate significant pressure on profitability. The increase in net debt by 11% raises concerns about the company's financial position. While some sectors like Infrastructure and specialist construction show strength, challenges in general construction and economic uncertainties cast a shadow on the outlook. The slight increase in dividend is a positive, but it's outweighed by profit declines and market headwinds.
Key Points
- Revenue increased by 3% to £380.0m
- Adjusted profit before tax decreased by 8% to £36.7m
- Adjusted basic EPS declined by 10% to 67.3p
- Return on Average Capital Employed at 14.2%, slightly below 15% target
- Net debt excluding lease liabilities increased by 11% to £138.5m
- Proposed full-year dividend increased to 39.5 pence per share
- Mixed performance across end markets, with Infrastructure and specialist construction strong, but general construction challenging
- Acquisition of Charleville Hire and Platform Ltd in October 2024
- Launch of Vp Rail to provide integrated rail sector solutions
- Continued progress in refreshing and centralising the Group's operating model
Summary
Vp plc delivered a resilient performance in FY 2024/25 with revenue growth of 3% to £380.0m. However, adjusted profit decreased by 8% to £36.7m, and adjusted basic EPS fell by 10% to 67.3p. The company maintained a strong Return on Average Capital Employed of 14.2%. Despite challenges, Vp proposed an increased full-year dividend of 39.5 pence per share. The company reported mixed market conditions, with strength in Infrastructure and specialist construction, but challenges in general construction. Looking ahead, Vp expects performance for the new financial year to be in line with current market expectations, despite continued economic uncertainty.