Actually, unless my calcs are wrong, i have the Chairman down as buying over £1.7m worth in several transactions..
You have to ask why he wants to buy more when he already holds such a large stake in the business. One can only speculate as to the reasons, but maybe after trying to sell the business unsuccessfully a year or so ago he's now looking to do some kind of "take private" deal?
Although personally i cannot see the logic behind such a move. |
All very true, EdundShaw. However, what's going to be the catalyst for re-rating? The company seems to be "content" to plod along with middling results; no-one wants to buy it (as evidenced by the process last year), and the free float of shares is tiny.
I, like you, am clipping the coupons as they come off whilst waiting for value to emerge - but this seems more of a value trap rather than an undervalued share.
I'm money up on it rather than money down - in both capital and income terms - but it needs a catalyst to get it moving. |
Our chairman seems to be very keen on his own shares, that looks like around 300k he has bought this year.
I think this is undervalued, and with transmission and water likely to continue to ba strong markets, for me that underpins the current share price, and increased housebuilding (which has to happen some time however incompetent our politicians have been / are) prospects look pretty robust. Yield of 6.8% is also great while waiting, and dropping interest rates make that look even more attractive... |
 "Robust results confirm quality and growth ambition" - new research note here:
Vp has delivered another robust H1 performance, with revenue and profits essentially in line with the prior year. This achievement should not be underestimated in the context of significant end market headwinds. Good progress has been made with the refreshed operating model, with the overarching aim of increasing collaboration across the Group and improving customer engagement.
Full-year guidance has been reiterated and the half-year results provide cover for 55% of our operating profit forecast. Increasing National Insurance contributions will have an impact in FY26 but we expect this to be partially mitigated and continue to anticipate a return to profit growth next year. Management is committed to delivering long term growth, driven by operational improvements, targeted capex and strategic M&A. In our view, a track record of consistently high returns warrants a higher rating.
We reiterate our 1000p / share Fair Value estimate. |
No comment! Tody's note does have reductions:
A resilient performance was reported despite challenging macro-economic conditions, plus an attractive accretive purchase in Ireland. Equity Dev's lowered Fair Value is £10/share, still materially above current levels.
Free access to the new note here: |
Thats me being pretty stupid :-o) |
I think that was the AGM update in July. |
My understanding is that company have downgraded full year PBT expectations. How can Equity Development say trading in line? |
"Trading in-line and delivering strategic progress"
Today’s AGM update confirms that Vp continues to perform well, reiterating full year expectations despite challenges in certain markets (notably construction). Meanwhile, the new management team is progressing the refreshed strategic priorities set out in June.
Broad market trends are consistent with those reported in recent periods. Infrastructure remains supportive, with good momentum and strong demand in transmission, water and civil engineering, although rail has seen a slower start to the year at the beginning of Control Period 7 (UK’s regulated five-year rail programme). The energy market is positive in the UK and internationally, whilst construction remains mixed (non-residential challenging, housebuilding subdued).
The new management team remains focused on the strategic priorities set out at June’s full year results: cross divisional collaboration, simplifying the Group’s operating model, and developing the digital roadmap.
Vp has an excellent track record of earnings and dividend growth over the long term, underpinned by the specialist focus of its activities and the diversity of its services and end markets. In our view, this track record warrants a premium rating.
We therefore consider the current valuation (a P/E of 9x and a 25% discount to peers) an anomaly and an attractive entry point for this high-quality business. We make no changes to our forecasts and maintain our 1,110p Fair Value estimate.
Link to report: |
Wonder if VP picked up the Amey contract that HSS have lost. Contract was 25m sales and 2.4m profit for HSS |
Video recording now available - Investor Presentation (FY Results)
Anna Bielby (Chief Executive) and Keith Winstanley (CFO) of Vp plc conducted an Investor Presentation covering Final Results for the year ended 31 March 2024.
The team discussed the solid overall performance despite challenges in some end markets, and the strong Return on Average Capital Employed, slightly ahead of prior year. The opportunity around both bolt on and strategic M&A across their different sectors was explored, along with ongoing digitisation to deliver enhanced procurement and cross selling. Management provided a detailed Financial and Operational review, and took investors through the different components of refreshed strategy. There was also a wide-ranging Question & Answer session at the end of the presentation.
The full video has been divided into chapters, as below:
0:00:03 Video - "We are Vp Group"
0:01:51 Introduction and FY24 highlights
0:07:27 Financial review
0:14:11 Strategy update
0:22:58 Operational review
0:27:52 Summary and outlook
0:28:45 Questions & Answers
Link to full video presentation: |
"Positioned for growth under new leadership"
Vp’s FY’24 results confirm a solid performance and an impressively resilient outturn on all key financial metrics. Revenue and adjusted profits are a shade below the prior year, whilst return on average capital employed, the final dividend and year-end net debt all show a year-on-year improvement. The results are in line with our expectations and are, once again, sector-leading.
We nudge our Fair Value estimate up from 1090p to 1110p. We see attractions in a 5.6% dividend yield and significant scope for earnings growth over the medium term as management initiatives take effect and, ultimately, market recovery takes hold.
Vp’s shares have performed well in recent months (+c.30%) alongside improving sentiment towards UK-focused shares. Despite this, the shares remain attractively valued and trade at a discount to the immediate peer group. In our view, Vp’s consistent outperformance of sector peers and long-term track record of earnings and dividend growth warrant a premium rating.
Link to research report: |
Save the Date - Investor Presentation on 7th June (sign up at the below link!)
Vp plc (LSE: Vp.), the equipment rental specialist, will be conducting an Investor Presentation covering its Final Results for the year ended 31 March 2024.
The online event will take place at 10.00am on Friday 7th June and will be hosted by Anna Bielby (Chief Executive) and Keith Winstanley (CFO).
The presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Link to register: |
Nice shift up. Still very cheap though... |
"Resilient FY24, confident long-term outlook"
Vp’s full year update highlights sector-leading results, once again benefiting from the diversity of its end markets and the quality of its specialist businesses.
With results expected to be broadly in line with expectations, we trim our FY24 PBT forecast by c.5% to £39.0m, a shade below the FY23 outturn (£40.2m). We consider this an impressively resilient performance set against a mixed market backdrop.
Under new leadership, a strategic refresh is underway and management is confident in long term prospects. In our view, the valuation is compelling (FY25E P/E of c7x). We reiterate our Fair Value estimate of 1090p per share.
Link to research report: |
Filling a gap? Big move on no volume. Support at 500p? |
Speedy’s news - SDY |
Big drop on no news? |
Vp plc - "5279;;Delivering growth in uncertain markets", new research report here:
Vp’s interims confirm another solid performance and continued growth despite the challenging backdrop. Revenue increased by 2.4% to £190.9m and adjusted PBT by 1.9% to £21.9m. This is >50% of our full year forecast (trimmed by c.4% to bring us in line with consensus).
Infrastructure demand has driven a positive H1 performance for Vp’s Groundforce, Torrent and TPA businesses. Vp’s experience is consistent with the latest construction industry data, which showsinfrastructure demand offsetting weakness in general construction and housebuilding. Vp is well positioned to benefit when these softer markets return to growth.
The period was notable for the change in leadership with Anna Bielby succeeding Neil Stothard as Group Chief Executive. Keith Winstanley has been appointed Group CFO and joins the Group in January 2024. We expect the refreshed management team to build on the Group’s strong foundations, with Digital innovation and ESG commitment at the forefront of Group strategy.
Following recent share price moves, Vp still trades at a marked discount to its immediate peers and its historic average rating. Over the long term, Vp has traded on a P/E rating of c.12x and the valuation at today’s share price represents a 30% discount to this level. We maintain our Fair Value estimate of £10.90 per share. |
Apologies, was a minor typo on the link - have fixed above now, thanks for highlighting. |
Register to chat with like-minded investors on our interactive forums.
Hot Features
Premium
