Vp plc posted a statutory loss for the fiscal year as trading conditions in UK construction and housebuilding weighed on its equipment rental operations. The group reported a loss after tax of 5.43 million and a pretax loss of 7 million.
Revenue for the year was 358.30 million, a decline of 5.7% compared with the prior year.
On an operating basis, adjusted EBITDA was reported at 78 million, while gross profit amounted to 2.21 million. Adjusted net debt at the year end was recorded at 48.90 million.
The company attributed the weaker top-line and profitability to challenging market conditions in UK general construction and housebuilding. Management highlighted that a restructuring programme at Brandon Hire Station generated exceptional costs during the year, but said the changes are designed to lift efficiency and margins going forward.
Vp also reported strength beyond the UK. The international segment delivered profit growth of 30%, supported by strategic investment and contributions from acquisitions.
Despite the statutory loss, the board decided to maintain the full-year dividend at 39.5 pence per share, stating confidence in the company's long-term prospects.
Looking ahead, Vp said it expects fiscal 2027 trading to be in line with current market expectations and anticipates improved year-on-year trading in fiscal 2027, helped by the Brandon Hire Station restructure. Analyst consensus for fiscal 2027 included in company commentary projects revenue of 52.1 million and adjusted profit of 3.1 million.
Sector implications
- UK construction and housebuilding - direct impact on rental demand and utilisation.
- Equipment rental - margins influenced by restructuring costs but supported by international growth.
- Investor returns - dividend maintained despite statutory losses, reflecting management confidence.