Torrent experienced a year of high demand with the division busy on
track renewals, rail projects and track maintenance activities. In
addition, activity was busy on the London Underground infrastructure
programme. During the year the UK rail industry embarked on Control
Spend Period 5 (CP5), which is now well underway after a slow start in
the early months of the year. This is a five year funded plan for the
maintenance, enhancement and renewal of track on the UK national rail
network.
During the course of the year Torrent acquired the plant assets, depots
and staff of the track plant and equipment division of Balfour Beatty
Rail. The acquisition also enhanced Torrent's depot network in the
South East where there is the greatest density of track, and as a result
new locations were secured at Romford, Ashford, Eastleigh and Ruislip.
Investment in fleet increased to GBP4.7 million (2014: GBP3.0 million)
both to refresh the fleet and also in support of new growth
opportunities.
The rail market continues to be well funded, buoyant and challenging.
The industry maintains its focus on delivering improved productivity,
efficiency gains and unit price reductions. Torrent's market leadership
places it well to meet those demands whilst continuing to deliver
service excellence to both existing and new customers.
PROSPECTS
The year ended 31 March 2015, generated the best ever financial results
for Vp plc.
Moving into the new financial year, the constituent business units are
well positioned to reap the benefits of sustained market demand
particularly in general construction, housebuilding and large elements
of the infrastructure sector. Oil and gas presents some shorter term
challenges, but overall the Group continues to be well positioned in
markets which are generally supportive.
We expect to actively invest in the infrastructure of the Group in the
coming year, recruiting more talent, expanding the branch network and
investing strongly in fleet. This will ensure that the Group is fit and
ready to deliver further incremental growth.
Trading into the new financial year has started well and the Board is
confident of making further positive progress for shareholders this
year.
Neil Stothard
Group Managing Director
4 June 2015
Consolidated Income Statement
for the year ended 31 March 2015
2015 2014
Note GBP000 GBP000
Revenue 1 205,602 183,064
Cost of sales (148,773) (133,470)
Gross profit 56,829 49,594
Administrative expenses (29,733) (28,883)
Operating profit before amortisation 1 28,780 21,831
Amortisation (1,684) (1,120)
Operating profit 27,096 20,711
Net financial expense (2,023) (1,778)
Profit before taxation and amortisation 26,757 20,053
Amortisation (1,684) (1,120)
Profit before taxation 25,073 18,933
Taxation 4 (5,202) (3,238)
Profit attributable to owners of the parent 19,871 15,695
Pence Pence
Basic earnings per share 2 51.03 39.78
Diluted earnings per share 2 47.01 36.31
Dividend per share paid and proposed 5 16.50 14.00
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2015
2015 2014
GBP000 GBP000
Profit for the year 19,871 15,695
Other comprehensive (expense)/income:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension scheme (55) 233
Tax on items taken to other comprehensive income 12 (53)
Impact of tax rate change - (118)
Foreign exchange translation difference (1,028) (181)
Items that may be subsequently reclassified to profit
or loss
Effective portion of changes in fair value of cash
flow hedges (1,011) 704
Total other comprehensive (expense)/income (2,082) 585
Total comprehensive income for the year 17,789 16,280
Consolidated Statement of Changes in Equity
for the year ended 31 March 2015
2015 2014
GBP000 GBP000
Total comprehensive income for the year 17,789 16,280
Dividends paid (5,986) (4,962)
Net movement relating to shares held by Vp Employee
Trust (11,059) (8,593)
Share option charge in the year 1,894 1,735
Tax movements to equity 1,145 2,876
Impact of tax rate change - (274)
Change in Equity 3,783 7,062
Equity at start of year 107,984 100,922
Equity at end of year 111,767 107,984
Consolidated Balance Sheet
as at 31 March 2015
Note 2015 2014
GBP000 GBP000
Non-current assets
Property, plant and equipment 147,817 124,834
Intangible assets 43,394 41,351
Employee benefits 1,043 689
Total non-current assets 192,254 166,874
Current assets
Inventories 6,495 5,352
Trade and other receivables 41,102 38,356
Cash and cash equivalents 3 5,236 8,978
Total current assets 52,833 52,686
Total assets 245,087 219,560
Current liabilities
Interest bearing loans and borrowings 3 - (17)
Income tax payable (1,948) (632)
Trade and other payables (54,988) (44,396)
Total current liabilities (56,936) (45,045)
Non-current liabilities
Interest bearing loans and borrowings 3 (72,000) (62,000)
Deferred tax liabilities (4,384) (4,531)
Total non-current liabilities (76,384) (66,531)
Total liabilities (133,320) (111,576)
Net assets 111,767 107,984
Equity
Issued share capital 2,008 2,008
Capital redemption reserve 301 301
Share premium account 16,192 16,192
Hedging reserve (1,101) (90)
Retained earnings 94,340 89,546
Total equity attributable to equity holders of the
parent 111,740 107,957
Non-controlling interests 27 27
Total equity 111,767 107,984
Consolidated Statement of Cash Flows
for the year ended 31 March 2015
Note 2015 2014
GBP000 GBP000
Cash flow from operating activities
Profit before taxation 25,073 18,933
Pension fund contributions in excess of service
cost (409) (376)
Share based payment charge 1,894 1,735
Depreciation 1 25,023 22,507
Amortisation 1 1,684 1,120
Financial expense 2,024 1,790
Financial income (1) (12)
Profit on sale of property, plant and equipment (3,277) (2,862)
Operating cash flow before changes in working
capital 52,011 42,835
(Increase)/decrease in inventories (854) 364
Increase in trade and other receivables (2,746) (3,525)
Increase in trade and other payables 6,114 7,581
Cash generated from operations 54,525 47,255
Interest paid (2,016) (1,848)
Interest element of finance lease rental payments (2) (5)
Interest received 1 12
Income tax paid (2,873) (3,949)
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