Vp plc

('Vp', or the 'Group')

Trading Update

Challenging macro-economic backdrop drives reset of expectations

Vp plc, the specialist equipment rental business, today provides a trading update for the ten months ended 31 January 2026.

The Board remains confident that the Group, aided by its robust balance sheet and transformation of Brandon Hire Station, and underpinned by a focused strategy targeted at core sectors, is well positioned to take advantage of future market opportunities. However, current market headwinds, particularly in construction and water, where we have seen a slower than expected impact from AMP8, have resulted in a disappointingly muted January 'return to work' and a correspondingly slow fourth quarter ramp-up in activity volumes. Therefore Vp now expects to report a profit* for the current financial year within the range of £26-29m.

Across the sectors in which we operate, we continue to see growth and strong demand in energy transmission, whilst rail activity remains steady yet subdued. We remain positive about prospects in water and confident in our ability to take advantage of the significant increase in expenditure to come in AMP8. However, while we have seen an uptick in design and planning work, we now expect to see meaningful increases in water revenues in FY27 rather than the current financial year. General construction remains subdued, with follow-on implications for activity levels across several Vp businesses.

In the Group's smaller end markets, performance in housebuilding has benefitted from operating model changes made in the last financial year but overall activity levels remain subdued. Energy continues to be impacted by macroeconomic factors with increased project activity expected in FY27.

Against this backdrop Vp continues to deliver on its strategy, including the continued implementation of our digital roadmap alongside further harmonisation of systems and business processes, all of which will drive further opportunities for the Group.

At Brandon Hire Station, which operates in the general construction market, good progress has been made delivering the transformational activities announced in November, which will result in a smaller, more focused and profitable business. These actions include a reduction in the branch footprint from over 100 to 41 and a headcount reduction of c.400. We remain on track to materially complete the transformation programme at Brandon by 31 March.

Alice Woodwark, Chief Executive of Vp, said: 

"Vp remains committed to its strategy of offering a diversified range of specialist equipment and expertise to clients across a portfolio of critical market sectors. While this diversity and breadth gives our business market-leading resilience and opportunity, it is not immune to general trading conditions in construction and delays to major infrastructure programme spend in key sectors. Our progress in transforming Brandon, which is on track for completion within the financial year, and our commitment to a strategy of growth and operational excellence position us well to take advantage of future opportunities across our markets."

- Ends -

*Profit before tax, amortisation and impairment of goodwill, trade names and customer relationships and exceptional items.

The information contained within this announcement is deemed by Vp to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018). On the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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Notes to Editors

Vp plc is a specialist equipment rental business providing equipment, people, services and support for specialist projects. It focuses on niche sectors principally in the Infrastructure, Construction, Housebuilding and Energy markets in the UK and overseas. Businesses include: Groundforce, TPA, Torrent Trackside, Brandon Hire Station, ESS, MEP Hire, CPH, UK Forks, Airpac Rentals and Tech Rentals. Vp Rail is the Group's integrated rail solution providing customers with direct access to all of Vp's rail specialisms through a central team.

Our approach to environmental and social impact is guided by our core values and responsible business framework, for more information go to: www.vpplc.com/esg-and-governance/