LONDON: Steady activity in the residential sector and a number of acquisitions pushed revenue at equipment hire company VP up 16pc to £121.7m in the last six months.
The company said it expected more construction work in the coming months as a result of Chancellor Philip Hammond’s Autumn Statement last week, which promised a boost to UK productivity through infrastructure projects.
VP, which is the parent company for brands such as Hire Station and UK Forks, said profits before tax were up 9pc to £18.7m in the half year to September 30, driven by a strong performance in the UK in particular, where revenue increased by 12pc to £108.1m.
Jeremy Pilkington, chairman of VP, said he expected to deliver full-year results ahead of market expectations and had not experienced any negative effect from the European Union referendum in June.
However, the company’s work in the oil and gas sector had been hit by a slowdown in recent months. Profit generated by the firm’s international division was down from £1m in the same six month period last year to £600,000 this year, although revenue rose from £8.5m last year to £13.7m this year.
VP, through its Airpac Bukom Oilfield Services arm, provides equipment such as steam generators and compressors both onshore and offshore across the UK, Singapore, Australia, the United Arab Emirates and Latin America.
“Despite a recent recovery in oil prices, the oil and gas exploration and development market remains very subdued,” Mr Pilkington said, although he added that he expected to see some pick up in the market in the next 18 months.
