Vp plc

('Vp' or the 'Group')

Trading Update

'Resilient trading, in line with expectations, debt significantly reduced

creating an excellent platform for robust growth'

Vp, the equipment rental specialist, today provides a trading update for the period since the Interim Results were issued on 7 December 2020 (the 'period').

The Board is pleased to report that the Group has traded in line with its expectations despite economic activity in many areas remaining constrained by Covid restrictions.

Vp's core markets of infrastructure, construction and housebuilding have experienced a positive trajectory over recent months and with the prospect of returning to greater economic normality the Board is confident that the recovery will accelerate and become increasingly robust.  Revenues recovered to 95% of pre-Covid levels during the period.  In the year debt has reduced by 22% from £160 million at 1 April 2020 to £124 million at 31 March 2021.

Vp has been a leader in the UK equipment rental sector for over 65 years.  The Group's success over this extended period has been founded upon a fierce commitment to innovation and a deeply embedded 'change positive' corporate mentality.

Over 20 years ago Vp became the first major rental company in the UK to move hire transaction management to centralised hire desks thereby enabling the Group to leverage new technologies to enhance fleet utilisation and availability.  Vp was the first large rental business in the UK to abandon a generalist product offering approach and focus instead on areas of rigorous specialist excellence and it was also the first to pursue a deliberate policy of strategic diversity in markets, products and geography to improve the resilience of earnings over the economic cycle.

The impact of all these measures has been transformational to Vp both in terms of the customer service experience and consistent financial returns to shareholders.

Vp's business model enabled it to recover extremely successfully from the last global recession in 2010.  Now as then, Vp is led by a highly experienced management team with unrivalled experience of managing and delivering shareholder value during all macro-economic conditions.  The Board has taken the opportunity to address the structure and capacity of the businesses to create an excellent platform from which to return the business to robust growth.

UK Division

Highlights in the period in the UK, include the securing of a long term preferred supply agreement with Balfour Beatty Rail.  Elsewhere, new management at ESS has successfully completed its exit from the Netherlands and is currently supporting one of the largest industrial shutdowns in the UK at the Valero plant in South Wales.  The Group has also been increasingly busy supporting contractors on HS2 in both the enabling and construction phases and the previously announced long term contract with Network Rail has had a successful first year.  The lockdown has also catalysed further innovation at Vp with growth in online tool hire rental for Brandon Hire Station progressing well.

International Division

The International businesses have experienced equally volatile trading conditions to the UK, but as we enter the new financial year those overseas territories are also recovering well as markets reopen.

Commenting on the Trading Update, Neil Stothard, Chief Executive of Vp, said: "As we have seen specific markets pick up, we have started to invest again in new equipment to meet demand as the latent capacity of the fleet has been drawn back into productive use.  The timing of some of this investment has been accelerated due to hopefully short term supply chain challenges for certain products, relating to both Covid-19 and Brexit disruptions.

"As we enter the new financial year, we are pleased to see revenues returning to 95% of pre-Covid levels and this despite some sectors (such as events and hospitality) remaining closed, infrastructure programmes (such as AMP7 and CP6) not yet fully up to speed and confidence in the general construction market improving but still not fully recovered to pre-Covid levels.  Our financial position remains strong having further reduced debt during the period leaving a platform for growth.

"We look forward to reporting another market leading performance in the UK this year and view the next 12 months with increasing confidence."

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The information contained in this announcement is deemed by the Company to constitute inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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Notes to Editors

Vp plc is a specialist rental business providing products and services to a diverse range of markets including infrastructure, construction, housebuilding and oil and gas, both in the UK and overseas.

The Group comprises a UK and an International division:

Further information is available at www.vpplc.com/investors