Vp Investors - VP.

Vp Investors - VP.

Best deals to access real time data!
Monthly Subscription
for only
Level 2 Basic
Monthly Subscription
for only
UK/US Silver
Monthly Subscription
for only
VAT not included
Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Vp Plc VP. London Ordinary Share GB0009286963 ORD 5P
  Price Change Price Change % Stock Price Last Trade
28.00 3.29% 878.00 16:35:16
Open Price Low Price High Price Close Price Previous Close
850.00 842.00 870.00 878.00 850.00
more quote information »
Industry Sector

Top Investor Posts

edmonda: Results are in line , with adj PBTA reaching a record level. Obviously coronavirus means uncertain outlook in short term , but even without forecasts yet the shares at 800p appear attractively priced, trading on trailing 8.9x PER, 1.9x price:book and 4.9x EV/EBITDA multiples - offering upside potential for patient investors vs peer group averages. Full note from Equity Development just published (with debt and re-opening of construction addressed) . Free access here: https://research.equitydevelopment.co.uk/research/tag/Vp
equitydev: hxxps://www.equitydevelopment.co.uk/company/?company=Vp&c=zgDO The holy grail for corporates is to create a sustainable edge that produces superior returns over the long term, and whose advantage is not eroded by time or competition. We think specialist plant hire firm Vp, with its strong niche positions, has achieved this. What’s more at 810p, its shares today trade at an historically low 8.0x PER, whilst also paying a 4.0% yield. Sure there are some macro headwinds, such as Brexit, lackluster global growth and US vs China trade wars. Yet equally the company is performing well, as illustrated again this morning. Here the group said that FY20 was on track to hit expectations. UK infrastructure spend is “holding up well”, whilst housebuilding remains stable, due to near-record levels of employment, low borrowing costs, good mortgage availability and the popular Help to Buy scheme. Partly offset by softness in general construction, particularly centred on London and the South East. Elsewhere, the £69.2m acquisition of Brandon Hire in Nov’17 has been successfully integrated with Hire Station. Some of the synergies will be realised later, albeit we estimate the deal should ultimately deliver c.£4m of annualised savings, related to procurement/cost improvements, economies of scale and greater asset/inventory utilisation. In turn, boosting the original RoI from 8.7% to >14% - materially above Vp’s ‘through cycle’ cost of capital. Lastly, despite experiencing a “softer start to FY20” than anticipated, Vp’s International division has recently enjoyed an uptick in activity levels across petrochemical and test & measurement. All told, we reiterate our adjusted FY20 PBT forecast of £49.6m and 1,075p/share valuation – offering 33% upside to patient investors.
edmonda: another strong set of FY results: adj PBT £40.6m + 16%, EPS 81.8p +18%, div 26p +18%; plus a 'positive start' to new year. Full updated ED research note now out from Paul Hill, freely available at https://www.equitydevelopment.co.uk/edreader/?ltkn=[ID]&d=%3D%3DAMzQjM All investors should make their own decisions, Mr Highlands, but this analyst's opinions on Vp in the last 4 years haven't been too far wrong
kingston78: You may call me biased, but I am simply speaking the truth. Many people don't understand accounts and those investors rely on what they read in the company's reports. Quite understandably, the directors would like to emphasise the good points and hide the bad points. Some companies pay a dividend even when they have a large pension deficit, for example, to appease investors. This is a political game. I have analysed the accounts of VP and its main trading subsidiaries. The trading subsidiaries did not perform as well as the way they have been glossed over because the parent company cross charges tiny amount of directors' remuneration to those subsidiaries even though they spent a lot of time on them. Similarly, those subsidiaries receive large interest-free loan from the parent company. Whilst the Group results would be the same, the reporting on individual subsidiaries has been distorted, ie their results have been flattered. VP continues to chase growth by acquisition. This is a piece of financial engineering to increase earnings per share using cheap debts. This strategy works well whilst the going is good but is not sustainable in the long term because things go in cycle. How is the Group going to service the debt mountain in an economic downturn? VP is not and will not be the last company adopting this type of acquisition strategy until they fall on the own sword some years down the line.
kingston78: There is so little trading in VP's shares that it is difficult to say whether the share price is "genuine", for example, someone bought 30 shares at 880. Why would a small investor buy only 30 shares at a cost of £264 (plus broker's commission). It does not really make sense that this kind of small buying and selling continue, so far VP is concerned. Market makers, or indeed, anyone for that matter can manipulate the share price by buying or selling tiny amount. I would say this is a false market.
kingston78: VP has bought poor quality earnings from Brandon Hire, which because of its huge debt has high interest charges, denting its pre-tax profit to a mere £1 million. From VP's perspective this acquisition is a piece of financial engineering because it has borrowed from banks at a low interest rate to pay off some or all of Brandon's HP liability I presume, so that the overall earning of the enlarged group is enhanced. So far so good until the tide turns for the worse when trading becomes difficult with rising interest rate and the Groups' net debt becomes more difficult to manage. P/E will fall, so will the share price. Dividend will fall because the company's cash flow will be constrained. As an investor I am wary of a company's rapid expansion built on debt. Carillion is a classic example.
felix1: Rhomboid - don't be square!I agree re the U.K. business. There's a clear model to acquire complementary businesses to widen their offer, which they've executed well, but I think they are quite choosy and seek out value, so growth in the U.K. is likely to continue to be steady and low risk. The addition of another market in Aus is more likely to catch the attention of institutional investors however. Though I suspect the 51% family holding might be a factor there.
hannahh: If you would like to hear Neil Stothard,Chief Executive, provide an update on Vp he will be presenting at our next investor forum on the evening of Wednesday 28th of September. Also appearing will be the management of Benchmark Holdings and Venture Life Group. To learn more about the forum and to register for free please follow this link: https://www.eventbrite.co.uk/e/equity-development-investor-forum-september-2016-tickets-27428572599 Thanks, The Equity Development team
rhomboid: IC tip today; "Share price performance among rental companies has been uninspiring over the past year. Valuations for small caps such as Speedy Hire (SDY) and HSS Hire (HSS) have slumped alarmingly, and even FTSE 350 constituent Ashtead (AHT) hasn't escaped the general markdown. However, the share price of Vp (VP.) has flatlined over the past 12-months. That implies resilience in the face of deteriorating markets, which is also borne out by the share price beta of just 0.1 (see table), and a narrow trading band through much of the year. However, Vp's shares aren't just a safety play - we also view them as a potentially lucrative recovery buy. Vp's contract mix does, indeed, include defensive strands through exposure to the UK water industry's capital spending and railways maintenance work. But that doesn't necessarily mean Vp's shares will underperform once investors regain their appetite for risk taking. That's because Vp, like all equipment-rental operators, has lots of operational gearing - as demand for its equipment rises and revenues respond, its costs stay little changed." " Vp is also likely to be a beneficiary of end-market recovery in the UK due to its efficient operating structure and proactive management. Its record of never cutting a dividend is an obvious draw for investors. However, there is also an implied upside of around one-third from the current share price of 685p if Vp's rating relative to its peer group - as measured by the price-earnings ratio on their shares - recovers to its historic average. True, this rating discount is mostly in relation to Vp's overseas peers, so the widening has been predominantly linked to the relative decline of the UK's support services sector. The group's focus on specialist segments of the equipment hire market has seen consistent improvement in profit margins and return on capital. The corporate structure comprises six operating divisions: UK Forks, Groundforce, Airpac Bukom Oilfield Services, Hire Station, Torrent Trackside and TPA. The group’s operations stretch across the UK, Ireland and into mainland Europe, and its oil and gas business operates internationally from a network of hubs across the globe. Predictably, this segment of the business has caused some consternation due to the fall-away in capital spending across the oil and gas industry. The effects of the industry-wide retrenchment were reflected in Vp's first-half figures, when Airpac Bukom reported a 25 per cent contraction in revenue, although a focus on cost controls meant that profit margins held up reasonably well. The group continues to see encouraging remits from the construction and housebuilding industries. This was reflected in the performance of Hire Station in the first half, where revenue and profit were up 9 per cent and 27 per cent respectively. All told, the group claims a highly creditable 16.1 per cent return on equity at the half-year mark, against 14.9 per cent in the previous first half." All fwiw
ganthorpe: I don't think the detail of the website should distract us from the investment merits of VP shares , which I believe are excellent. After all I doubt if major investors ever look at a Company website - they just pick up the phone and ask a Director if they want info. Regards GAN
ADVFN Advertorial
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210419 02:58:51