VP plc Navigates Macro Headwinds with Solid First Half Performance; Eyes Stronger Second Half

Vp plc (LON: VP), the specialist equipment rental business, has demonstrated resilience in its latest trading update, reporting a solid first-half performance despite a challenging macroeconomic backdrop.

The company anticipates a performance for the year ending 31 March 2026 to be in line with market expectations, with revenue and profit modestly weighted towards the second half of the financial year.

The Group's success was particularly evident in Germany and Ireland, where supportive market conditions allowed for continued growth.

However, conditions varied across Vp's end markets, presenting both opportunities and challenges.

In the infrastructure sector, transmission activities remained strong, especially in Germany. While prospects in the water sector are extremely positive, revenue in the first half was lower compared to the previous year due to the transition from AMP7 to AMP8.

The company anticipates increased activity levels in the second half of the year and beyond. Rail activity remained subdued due to delays in Network Rail's CP7, but Vp remains well-positioned to capitalize on planned investments in the medium term.

The construction sector saw strong performance in specialist construction, while the general construction market remained challenging. The recovery plan for Brandon Hire Station is progressing well and is on track for completion by the end of the financial year.

Smaller end markets, such as housebuilding, benefited from operating model changes implemented in the last financial year. Energy activity levels are satisfactory, with projects expected to be concentrated in the second half of the year.

The company's digital roadmap, which focuses on simplifying operations and improving customer experience, underpins Vp's strategy. Vp compiled analyst consensus for 2025/2026 includes revenue of £386.1m, profit before tax, amortisation and impairment of goodwill, trade names and customer relationships and exceptional items of £37.3m and pre-IFRS 16 net debt of £137.3m.

Anna Bielby, Chief Executive of Vp, commented: “Despite challenges in some of our end markets, the first half of the financial year has again demonstrated the strength and resilience of our diverse business model.”

Bielby further stated that Vp remains optimistic about the second half of the financial year and expects to see increased activity levels across areas such as Rail and Water as long-term investment programmes gain traction, with infrastructure being further supported by the UK Government's revitalisation initiatives.