Posts in LSE:VP.

15 stocks in the 'buy zone'

15 stocks in the 'buy zone'

After rejigging the algorithm and reassessing every share ranked by his Decision Engine stock screener, companies analyst Richard Beddard has a lot to report on.

Vp acquisition of Brandon Hire probed by regulator

Vp said the Competition and Markets Authority is investigating its acquisition of Brandon Hire Group. Prior to completion of the deal, Vp said it conducted a detailed due diligence exercise, including assessing potential competition considerations.

It said it would fully assist the CMA with its enquiry and provide further updates to the market when appropriate.

At 9:43am: (LON:VP.) VP PLC share price was -25p at 855p

2 growth and income bargains that could help you retire with a million

VP (LSE:VP) extended its recent upward charge on Tuesday thanks to the release of terrific first-half trading numbers. The small-cap was last up 4% on the day, meaning that its market value has swelled 17% during the past fortnight alone.

VP, which provides a variety of rental equipment in the UK and abroad, advised that revenues charged 12% higher between April and September, to £136m. This saw profit before tax and amortisation improve 13% year-on-year, to £21.2m.

Vp hikes dividend as profits rise

Vp boosted first-half profits and hiked its dividend after revenue rose.

Profit before tax and amortisation increased 13% to £21.2m, as revenue jumped 12% to £136.0m.

The company increased its interim dividend by 13% to 6.80p per share.

"Vp has again delivered an excellent set of results for the half year," chairman Jeremy Pilkington said.

"The UK market remains strong, and whilst there is some uncertainty around the implications that Brexit will have on the UK, the day-to-day demand continues to be highly positive."

"There is also an improving trend for our international div

Record H1 & Strategic £68.8M Acquisition Of Brandon Hire

Vp is a specialist rental business providing equipment and services to a wide range of markets including civil engineering, rail, oil and gas exploration, construction, outdoor events and industry, primarily (>90% FY19 sales) within the UK, but also from overseas. Encouragingly, the existing business continues to bang out “excellent” numbers, such as today’s interims. Here, headline adjusted PBTA came in at £21.1m up 13% (vs £18.7m LY) on turnover 12% higher to £136m (£121.7m) - delivering EPS of 44.2p (+17%), 16% ROCE and a 6.8p dividend (+13%). Divisionally, the UK continues to be the standout performer, contributing 88% and 94% respectively of H1’18 revenues and EBIT - reflecting robust performances from construction, housebuilding, AMP6 water spend and infrastructure, particularly boosting Hire Station and Groundforce. The trick to successful M&A is knowing the target inside-out, not over-paying and then integrating flawlessly to deliver the desired synergies. To us, on all of these fronts, Vp’s canny £68.8m purchase of Brandon Hire (924 FTEs) on 7th November (from private equity house, Rutland Partners) scores highly. The price is attractive, equivalent to 2016 EV/EBITDA, EV/EBIT and EV/Book (debt/cash free) multiples of 5.6x, 11.5x and 1.9x – representing a discount to the sector and offering an immediate 8.7% Return on Investment (RoI, pre-integration). Although Brandon is not anticipated to make a material contribution to profits in FY18, we reckon there is plenty of scope to lift EBIT margins from 7.5% to >10% in due course, thanks to: cost/procurement savings, synergies, economies of scale and improved asset/inventory utilisation. Strategically too, the deal looks a neat cultural, geographic and customer fit with Vp’s Hire Station (HS) unit. Indeed, with a branch network of 143 (typically smaller) sites, Brandon is a national operator servicing circa 20,000 SMEs, with regional ties to the South West, Wales and in/around towns. Better still, the transaction should be strongly earnings accretive, with our FY19 adjusted EPS forecast climbing 17% from 78.3p to 93.3p. Similarly pushing up our valuation to 970p/share (vs 890p), equivalent to circa 11x and 6x next year’s EBITA and EBITDA for the enlarged group.
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Eight top shares that meet Jim Slater's investment rules

Eight top shares that meet Jim Slater's investment rules

Investors interested in small-cap shares will know that growth has got expensive, but Stockopedia's Ben Hobson has found eight sensible growth companies at a fair price.

Ovid's shares for the future

Ovid's shares for the future

Speculators focus on extremes, leaving good firms at reasonable prices in the middle - unloved and undervalued. Here's why Richard Beddard's stocks are 'safest in the middle course'.

Director Deals - VP PLC (VP.)

Allison Bainbridge, Financial Director, exercised 679 shares in the company on the 19th October 2017 at a price of 530.00p. The Director now holds 679 shares representing 0.00% of the shares in issue.

Director deals data provided by www.directorsholdings.com

Director Deals - VP PLC (VP.)

Neil Stothard, Chief Executive Officer, exercised 679 shares in the company on the 19th October 2017 at a price of 530.00p. The Director now holds 789,584 shares.

Director deals data provided by www.directorsholdings.com

On Track For Further Profitable Growth

Vp is a specialist rental business providing equipment and services to a wide range of markets including civil engineering, rail, oil and gas exploration, construction, outdoor events and industry, primarily within the UK (88.5% FY17 sales), but also increasingly overseas (11.5%). If looking for a solid, dependable and well diversified plant-hire specialist, then perhaps look no further than Vp, who navigated the last downturn with real aplomb. It said yesterday that trading for the first 5 months had been “positive” and consistent “with full year expectations”. An impressive performance, especially given macro concerns over BREXIT, a potentially slowing UK economy, a moribund crude price and unsupportive global geopolitics. In the UK, “healthy demand” continues to be experienced in infrastructure, construction and housebuilding, augmented by April’s acquisitions of Zenith Survey Equipment (£6.15m) and Jackson Mechanical Services (£3.6). Encouragingly too, the overseas oil/gas division (Airpac Bukom) has also seen stabilisation return in AsiaPac. As such, we make no change to our forecasts or 890p/share valuation, and look forward to hearing more at the interims on 21 November 2017. Longer term, construction of the UK’s new nuclear reactor at Hinkley Point (£17.6bn), a 3rd runway at Heathrow (£17.8m), HS2 (£55.7bn), London’s super-sewer and Crossrail 2 should all prove supportive too.
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