TIDMVP.
RNS Number : 3587Q
Vp PLC
29 November 2016
29 November 2016
Vp plc
("Vp", the "Group" or the "Company")
Interim Results
Vp plc, the equipment rental specialist, today announces its
Interim Results for the six months ended 30 September 2016 (the
"period").
Highlights
-- Profit before tax and amortisation increased
9% to GBP18.7 million (H1 2016: GBP17.2 million)
-- Revenues 16% ahead at GBP121.7 million, (H1
2016: GBP105.1 million)
-- Strong return on average capital employed at
15.6% (H1 2016: 16.1%)
-- Capital investment in rental fleet up 28% to
GBP29.9 million (H1 2016: GBP23.4 million)
-- EPS, pre-amortisation, increased 8% to 37.9
pence per share (H1 2016: 35.1 pence per share)
-- 12% increase in interim dividend to 6.00 pence
per share (H1 2016: 5.35 pence per share)
Jeremy Pilkington, Chairman of Vp plc, commented:
"Strong organic growth plus the successful integration of two
acquisitions has delivered this excellent set of results. Increased
capital investment into market opportunities gives us confidence
that we will be able to deliver results ahead of market
expectations for the year as a whole."
- Ends -
Enquiries:
Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423
533 400
jeremypilkington@vpplc.com
Neil Stothard, Chief Executive Tel: +44 (0) 1423
533 400
neil.stothard@vpplc.com
Allison Bainbridge, Group Tel: +44 (0) 1423
Finance Director 533 400
allison.bainbridge@vpplc.com www.vpplc.com
Media enquiries:
Buchanan Communications
Henry Harrison-Topham / Jane Tel: +44 (0) 20
Glover 7466 5000
vp@buchanan.uk.com www.buchanan.uk.com
CHAIRMAN'S STATEMENT
I am very pleased to report a further set of excellent results
for the six month period to 30 September 2016.
Profit before amortisation and tax rose 9% to GBP18.7 million
(H1 2016: GBP17.2 million) on revenues 16% higher at GBP121.7
million (H1 2016: GBP105.1 million). This performance reflects
strong underlying organic growth in most of our businesses, plus
contributions from the acquisitions of Higher Access and TR Group
in March and April 2016 respectively. Earnings per share,
pre-amortisation, increased 8% to 37.9 pence per share (H1 2016:
35.1 pence per share). Return on capital employed at 15.6% is
strong and remains ahead of our long term target of 15% emphasising
the quality of the revenue and profit growth that the Group is
generating.
Capital investment in fleet in the period rose significantly to
GBP29.9 million (H1 2016: GBP23.4 million). Borrowings at the
period end stood at GBP107.5 million (March 2016: GBP86.1 million)
after funding organic investment and acquisitions totalling GBP42.5
million. Operational cash flow remained very strong at GBP26.6
million.
In light of these very positive results, we are pleased to
declare an interim dividend of 6.00 pence per share (H1 2016: 5.35
pence per share), an increase of 12%, payable on 4 January 2017 to
shareholders on the register as at 9 December 2016.
Review of operations
UK division
Our UK division has enjoyed a strong first half, reporting
operating profits before amortisation of GBP19.5 million, up 13%
(H1 2016: GBP17.2 million) on revenues 12% ahead at GBP108.1
million (H1 2016: GBP96.7 million). Residential construction
activity has proved to be robust and we see potential further
upside from general construction enhanced in the medium term by the
initiatives announced in last week's Autumn Statement.
Infrastructure markets have delivered growth and the AMP6 water
infrastructure investment programme, in particular, is now starting
to show signs of increased activity. The Higher Access business
acquired in March 2016 has integrated well.
We have remained alert for signs of any negative impact on our
UK businesses from the Brexit decision and whilst there was some
initial market volatility and a weakening of Sterling, we have not
seen any adverse effect on our UK trading activities to date.
International division
The International division reported a reduction in operating
profits before amortisation to GBP0.6 million (H1 2016: GBP1.0
million) on revenues of GBP13.7 million (H1 2016: GBP8.5 million)
impacted by a weak oil and gas sector. Despite a recent recovery in
oil prices, the oil and gas exploration and development market
remains very subdued with the inevitable impact on revenues and
profitability in our Airpac Bukom business. However, LNG activity
in Australia has held up well and there are tentative signs that
the wider oil and gas market may commence a slow recovery over the
next 18 months.
The International division results include a maiden contribution
from TR Group, which was acquired at the end of April 2016 and
which has quickly settled into the wider Vp Group. We were pleased
to announce the acquisition on 25 November 2016 of the whole issued
share capital of TechRentals NZ for a cash consideration of NZ$2.6
million (New Zealand Dollars), a business which complements TR
Group's existing activities in Australia, New Zealand and
Malaysia.
Outlook
In conclusion we remain very positive about the opportunities
for the Group in the second half of the year and beyond, and
believe that we will be able to report results ahead of market
expectations for the financial year as a whole.
Jeremy Pilkington
Chairman
29 November 2016
Condensed Consolidated Income Statement
For the period ended 30 September 2016
Note Six months Six months Full year
to to to
30 Sep 30 Sep 31 Mar
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Revenue 3 121,733 105,118 208,746
Cost of sales (87,031) (73,589) (149,758)
------------ ------------ ------------
Gross profit 34,702 31,529 58,988
Administrative expenses (15,528) (14,210) (29,395)
------------ ------------ ------------
Operating profit 3 19,174 17,319 29,593
Net financial expenses (1,452) (991) (2,093)
------------ ------------ ------------
Profit before amortisation
and taxation 18,682 17,189 29,798
Amortisation of intangibles (960) (861) (2,298)
Profit before taxation 17,722 16,328 27,500
Income tax expense 4 (3,677) (3,351) (5,112)
------------ ------------ ------------
Net profit for the period 14,045 12,977 22,388
============ ============ ============
Basic earnings per share 7 35.92p 33.37p 57.49p
Diluted earnings per
share 7 34.70p 31.23p 54.51p
Dividend per share 8 6.00p 5.35p 18.85p
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 September 2016
Six months Six months Full
to to year
to
30 Sep 30 Sep 31 Mar
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Profit for the period 14,045 12,977 22,388
Other comprehensive income:
Items that will not be
reclassified to profit
or loss
Actuarial gains on defined
benefit pension scheme - - 122
Tax on items taken direct
to equity - - (23)
Impact of tax rate change - - (39)
Foreign exchange translation
difference 922 (153) 693
Items that may be subsequently
reclassified to profit
or loss
Effective portion of changes
in fair value of cash flow
hedges (249) 552 581
Other comprehensive income 673 399 1,334
Total comprehensive income
for the period 14,718 13,376 23,722
------------ ------------ ----------
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2016
Six months Six months Full year
to to to
30 Sep 30 Sep 31 Mar
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Total comprehensive income
for the period 14,718 13,376 23,722
Tax movements to equity 352 1,058 1,123
Impact of tax rate change - - (31)
Share option charge in
the period 1,081 1,012 1,904
Net movement relating to
shares held by Vp Employee
Trust (3,162) (8,360) (10,567)
Dividends to shareholders (5,274) (4,490) (6,568)
Change in equity during
the period 7,715 2,596 9,583
Equity at the start of
the period 121,350 111,767 111,767
Equity at the end of the
period 129,065 114,363 121,350
------------ ------------ -----------
There were no movements in issued share capital, the capital
redemption reserve or share premium in the reported periods.
Condensed Consolidated Balance Sheet
At 30 September 2016
30 Sep 30 Sep
Note 2016 31 Mar 2015
2016
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Non-current assets
Property, plant and
equipment 5 188,352 167,201 155,906
Goodwill 40,381 39,307 35,846
Intangible assets 6 9,949 7,056 6,687
Employee benefits 1,534 1,534 1,231
------------ ------------ ------------
Total non-current assets 240,216 215,098 199,670
------------ ------------ ------------
Current assets
Inventories 5,355 5,363 4,981
Trade and other receivables 51,438 44,817 44,039
Cash and cash equivalents 3,247 4,517 2,215
Total current assets 60,040 54,697 51,235
------------ ------------ ------------
Total assets 300,256 269,795 250,905
------------ ------------ ------------
Current liabilities
Interest bearing loans
and borrowings (1,401) (873) -
Income tax payable (2,455) (931) (1,567)
Trade and other payables (52,000) (51,567) (46,623)
------------ ------------ ------------
Total current liabilities (55,856) (53,371) (48,190)
------------ ------------ ------------
Non-current liabilities
Interest bearing loans
and borrowings (109,339) (89,778) (84,000)
Deferred tax liabilities (5,996) (5,296) (4,352)
------------ ------------ ------------
Total non-current liabilities (115,335) (95,074) (88,352)
------------ ------------ ------------
Total liabilities (171,191) (148,445) (136,542)
------------ ------------ ------------
Net assets 129,065 121,350 114,363
------------ ------------ ------------
Equity
Issued share capital 2,008 2,008 2,008
Capital redemption reserve 301 301 301
Share premium 16,192 16,192 16,192
Hedging reserve (769) (520) (549)
Retained earnings 111,306 103,342 96,384
------------ ------------ ------------
Total equity attributable
to equity
holders of parent 129,038 121,323 114,336
Non-controlling interest 27 27 27
Total equity 129,065 121,350 114,363
------------ ------------ ------------
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2016
Note Six months Six months Full
to to year
to
30 Sep 30 Sep 31 Mar
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Cash flows from operating
activities
Profit before taxation 17,722 16,328 27,500
Adjustment for:
Pension fund contributions
in excess of service
cost - (188) (369)
Share based payment charges 1,081 1,012 1,904
Depreciation 5 16,172 13,274 27,375
Amortisation of intangibles 960 861 2,298
Net financial expense 1,452 991 2,093
Profit on sale of property,
plant and equipment (3,280) (3,156) (6,246)
------------ ------------ -----------
Operating cash flow before
changes in working capital
and provisions 34,107 29,122 54,555
Decrease in inventories 8 1,514 1,132
Increase in trade and
other receivables (4,955) (2,937) (2,101)
Increase/(decrease) in
trade and other payables 288 (5,296) (5,729)
------------ ------------ -----------
Cash generated from operations 29,448 22,403 47,857
Interest paid (1,294) (1,003) (2,097)
Interest element of finance
lease rental payments (156) - (4)
Interest received 14 4 4
Income tax paid (1,461) (2,711) (4,840)
------------ ------------ -----------
Net cash flows from operating
activities 26,551 18,693 40,920
Cash flows from investing
activities
Proceeds from sale of
property, plant and equipment 8,108 9,234 17,179
Purchase of property,
plant and equipment (33,637) (29,814) (50,237)
Acquisition of businesses
and subsidiaries (net
of cash and overdrafts) (8,876) - (7,068)
------------ ------------ -----------
Net cash flows used in
investing activities (34,405) (20,580) (40,126)
Cash flows from financing
activities
Purchase of own shares
by Employee Trust (3,162) (8,360) (10,566)
Repayment of loans (110) - -
New loans 16,000 12,000 16,000
Payment of hire purchase
and finance lease liabilities (198) - (497)
Dividends paid 8 (5,274) (4,490) (6,568)
------------ ------------ -----------
Net cash flows from /
(used) in financing activities 7,256 (850) (1,631)
Net decrease in cash
and cash equivalents (598) (2,737) (837)
Effect of exchange rate
fluctuations on cash
held (756) (284) 118
Cash and cash equivalents
at beginning of period 4,517 5,236 5,236
------------ ------------ -----------
Cash and cash equivalents
at end of period 9 3,163 2,215 4,517
------------ ------------ -----------
Notes to the Condensed Consolidated Interim Financial
Statements
1. Basis of Preparation
Vp plc (the "Company") is a company incorporated and domiciled
in the United Kingdom. The Condensed Consolidated Interim Financial
Statements of the Company for the half year ended 30 September 2016
comprise the financial information of the Company and its
subsidiaries (together referred to as the "Group").
This interim announcement has been prepared in accordance with
the Disclosure and Transparency Rules of the UK Financial Services
Authority and the requirements of IAS34 ("Interim Financial
Reporting") as adopted by the EU. The accounting policies applied
are consistent for all periods presented and are in line with those
applied in the annual financial statements for the year ended 31
March 2016, which were prepared in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the EU. There
are no new IFRSs or IFRICs that are effective for the first time in
the current year which are expected to have a significant impact on
the Group.
The interim announcement was approved by the Board of Directors
on 28 November 2016.
The Condensed Consolidated Interim Financial Statements do not
constitute statutory accounts as defined in Section 434 of the
Companies Act 2006.
The comparative figures for the financial year ended 31 March
2016 are extracted from the Company's statutory accounts for that
financial year. Those accounts have been reported on by the
Company's auditors and delivered to the Registrar of Companies. The
report of the auditors was (i) unqualified, (ii) did not include a
reference to any matters to which the auditors drew attention by
way of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
The preparation of financial statements requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates. In preparing these condensed interim
financial statements, the significant judgements made by management
in applying the Group's accounting policies and key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements for the year ended 31 March
2016.
The Group continues to be in a healthy financial position with
total banking facilities of GBP120 million, including an overdraft
facility. Since the year end net debt has increased by GBP21.4
million to GBP107.5 million. The Board has evaluated the banking
facilities and the associated covenants on the basis of current
forecasts, taking into account the current economic climate and an
appropriate level of sensitivity analysis. Having reassessed the
principal risks the Directors consider it appropriate to adopt the
going concern basis of accounting in preparing the interim
financial information.
2. Risks and Uncertainties
The principal risks and uncertainties facing the Group and the
ways in which they are mitigated are described on page 22 and 23 of
the 31 March 2016 Annual Report and Accounts. The principal risks
and uncertainty are market risk, competition, investment / product
management, people, safety, financial risks and contractual risk.
These risks and uncertainties remain the same for this interim
financial report.
3. Summarised Segmental Analysis
Income statement
Revenue Operating Profit
Sept 2016 Sept 2015 Sept 2016 Sept
2015
GBP000 GBP000 GBP000 GBP000
UK 108,071 96,658 19,485 17,177
International 13,662 8,460 649 1,003
121,733 105,118 20,134 18,180
---------- ---------- ---------- -------
Amortisation (960) (861)
Operating Profit 19,174 17,319
---------- -------
Net Assets
Assets Liabilities Net Assets
Sep Sep 15 Sep Sep Sep Sep
16 16 15 16 15
UK 251,324 216,398 51,988 45,352 199,336 171,046
International 42,675 28,394 10,734 4,622 31,941 23,772
Group/
unallocated 6,257 6,113 108,469 86,568 (102,212) (80,455)
300,256 250,905 171,191 136,542 129,065 114,363
-------- -------- -------- -------- ------------ ---------
The net liability in Group primarily reflects the balance on the
revolving credit facility which is controlled centrally by the
Group.
4. Income Tax
The effective tax rate is 20.7% in the period to 30 September
2016 (30 September 2015: 20.5%). The effective rate for the period
reflects the current standard tax rate of 20% (H1 2016: 20%), as
adjusted for estimated permanent differences for tax purposes
offset by gains covered by exemptions.
5. Property, Plant and Equipment
Sept 2016 Sept Mar
2015 2016
GBP000 GBP000 GBP000
Opening carrying amount 167,201 147,817 147,817
Additions 31,608 27,297 52,036
Acquisitions 8,512 - 5,089
Depreciation (16,172) (13,274) (27,375)
Disposals (4,828) (6,078) (10,933)
Effect of movements in exchange
rates 2,031 144 567
---------- --------- ---------
Closing carrying amount 188,352 155,906 167,201
---------- --------- ---------
The value of capital commitments at 30 September 2016 was
GBP8,746,000 (31 March 2016 GBP6,525,000).
6. Acquisitions
On 21 April 2016 the Group acquired TR Pty Limited, a group
based in Australia, for cash consideration of A$17.4m (Australian
Dollars), GBP9.3m. The fair value of net assets at the date of
acquisition, including provisional estimates of intangibles for the
trade name and customers relationships, was GBP8.3m. The revenue in
the period from acquisition to 30 September 2016 was GBP8.2m and
the operating profit was GBP0.8m.
7. Earnings Per Share
Earnings per share have been calculated on 39,098,567 shares (H1
2016: 38,887,444 shares) being the weighted average number of
shares in issue during the period. Diluted earnings per share have
been calculated on 40,473,236 shares (H1 2016: 41,554,659 shares)
adjusted to reflect conversion of all potentially dilutive ordinary
shares. Basic earnings per share before the amortisation of
intangibles was 37.89 pence (H1 2016: 35.14 pence) and was based on
an after tax add back of GBP768,000 (H1 2016: GBP689,000) in
respect of the amortisation of intangibles. Diluted earnings per
share before amortisation of intangibles was 36.60 pence (H1 2016:
32.89 pence).
8. Dividends
The Directors have declared an interim dividend of 6.00 pence
(H1 2016: 5.35 pence) per share payable on 4 January 2017 to
shareholders on the register at 9 December 2016. The dividend
declared will absorb an estimated GBP2,358,000 (H1 2016:
GBP2,087,000) of shareholders funds. The dividend proposed at the
year-end was subsequently approved at the AGM in July 2016 and
GBP5,274,000 was paid in the period (H1 2016: GBP4,490,000 was
paid). The cost of dividends in the Statement of Changes in Equity
is after adjustments for the interim and final dividends waived by
the Vp Employee Trust in relation to the shares it holds for the
Group's share option schemes.
9. Analysis of Net Debt
As at Cash As at
1 Apr Acquisition Flow 30 Sep
16 16
GBP000 GBP000 GBP000 GBP000
Cash and cash equivalents 4,517 419 (1,773) 3,163
Revolving credit
facilities (88,000) (4,313) (15,890) (108,203)
Finance leases and
hire purchases (2,651) - 198 (2,453)
--------- ------------ --------- ----------
(86,134) (3,894) (17,465) (107,493)
--------- ------------ --------- ----------
On 11 April 2016 the Group took out an additional revolving
credit facility of GBP20 million which expires in May 2020 by
making use of an uncommitted step up facility. The Group's
committed revolving credit bank facilities therefore comprise a
GBP45 million five year facility which expires in May 2020, a GBP20
million four year facility also expiring in May 2020, a GBP30
million four and a half year facility expiring in October 2017 and
a GBP20 million facility taken out in June 2014 which also expires
in October 2017, together with an uncommitted step up facility of
GBP5 million and overdraft facilities totalling GBP5 million.
10. Related Party Transactions
Transactions between Group Companies, which are related parties,
have been eliminated on consolidation and therefore do not require
disclosure. The Group has not entered into any other related party
transactions in the period which require disclosure in this interim
statement.
11. Post Balance Sheet Event
On 25 November 2016 the Group acquired TechRentals NZ Limited, a
company in New Zealand, for a cash consideration of NZ$2.6
million.
12. Forward Looking Statements
The Chairman's Statement includes statements that are forward
looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Group to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and
applicable law, the Company undertakes no obligation to update,
review or change any forward looking statements to reflect events
or developments occurring after the date of this report.
Responsibility statement of the directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed consolidated set of interim financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
By order of the Board
29 November 2016
The Board
The Directors who served during the six months to 30 September
2016 were:
Jeremy Pilkington (Chairman)
Neil Stothard (Chief Executive)
Allison Bainbridge (Group Finance Director)
Steve Rogers (Non-Executive Director)
Phil White (Non-Executive Director)
Independent review report to Vp plc
Report on the Condensed Consolidated Interim Financial
Statements
Our conclusion
We have reviewed Vp plc's Condensed Consolidated Interim
Financial Statements (the "interim financial statements") in the
Interim Results of Vp plc for the 6 month period ended 30 September
2016. Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- the Condensed Consolidated Balance Sheet as at 30 September 2016;
-- the Condensed Consolidated Income Statement for the period then ended;
-- the Condensed Consolidated Statement of Cash Flows for the period then ended;
-- the Condensed Consolidated Statement of Changes in Equity for the period then ended; and
-- the notes to the interim financial statements.
The interim financial statements included in the Interim Results
have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the
European Union and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The Interim Results, including the interim financial statements,
are the responsibility of, and have been approved by, the
directors. The directors are responsible for preparing the interim
results in accordance with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the Interim Results based on our review.
This report, including the conclusion, has been prepared for and
only for the company for the purpose of complying with the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility
for any other purpose or to any other person to whom this report is
shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK and
Ireland) and, consequently, does not enable us to obtain assurance
that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the Interim
Results and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
Leeds
29 November 2016
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UWSWRNSAAUAA
(END) Dow Jones Newswires
November 29, 2016 02:00 ET (07:00 GMT)
Vp (LSE:VP.)
Historical Stock Chart
From Apr 2024 to May 2024
Vp (LSE:VP.)
Historical Stock Chart
From May 2023 to May 2024