Share Name Share Symbol Market Type Share ISIN Share Description
VP LSE:VP. London Ordinary Share GB0009286963 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -10.00p -1.11% 890.00p 890.00p 898.00p 900.00p 890.00p 900.00p 6,723 12:23:24
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 248.7 30.3 60.3 14.8 357.37

VP Share Discussion Threads

Showing 876 to 900 of 900 messages
Chat Pages: 36  35  34  33  32  31  30  29  28  27  26  25  Older
Sold rest of my holding on Monday after having a decent sized position for 4 yrs. Wasn't over keen on Brandon acquisition and little nervous about any possible exposure to CLLN. Dropped the Co an email over the weekend asking them to clarify but have had no response to date. Suspect it will be modest and covered by insurance but would have preferred to know. Like the management team here and I'm sure they can knock Brandon into shape over time but given where we are in the current cycle & the level of existing debt even prior to acquisition I wanted to be cautious. Best of luck all holders.
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.
trading bot, read Michael Lewis Flash Boys
At the close someone bought 12 shares at just under 900 p. During the day there were sells at much lower price. Someone, or could be a fund manager, tries to maintain a high share price buying small number again at the close. I would call this manipulation. Is this another scandal?
worth a read on VP debt...
I have observed in recent days that some people appear to be manipulating the share price by buying in small number (17 shares) towards the close paying at a "high" price, thus pushing up the share price.
I don't even need any charting software to predict a price of 800 p. Many years of experience tell me that the shares were running of steam at around 920 p when it could not break new ground. Subsequent attempts to move higher were muted. As soon as the price fell below 900 p you could see the next stop at 800 p where there were supports on three previous occasions. I normally use candle chart. Share prices go in cycles, and even very successful companies see their price fall from time to time. Personally, I would not invest in plant hire companies at the current economic climate. Growing by acquisition carries risk, and the risk becomes bigger when the Company borrows heavily to finance the acquisition.
Still comfortably above 50-, 100- and 150-day moving average. What chart formation are you using to suggest 800p? There's plenty of support in between here and there.
Interesting comment, based on not much more than your perception that the share price should be lower, rather than any actual knowledge or insight?
The share chart looks negative and the next stop / support is 800 p, which I expect it to hold.
Westcountryboy, I agree with some of your comments. I am not saying that VP is not a successful company. I just want to emphasise the point that sometimes ambition overstretches a company and sometimes detrimentally. There are a number of financial ratios to measure success or failure of a company, two of which are cash flow and profit after tax. These two factors determine the company's ability to pay dividend and to finance operations and future growth. Whilst VP has the ability to manage growth as well as paying a dividend, you should note that it has had a recent history of increasing net debt at the end of each reporting period. In essence it is borrowing to pay for acquisitions, not a good sign. At the interim stage at 30/9/2017 it had net debt of £115 million. It has arranged additional facility to finance the two latest acquisitions (cash consideration and debt = £70.5 million). So the Company now has a net debt of £185 million, against a total new facility of £205 million.
Always interesting to read contrary opinions. I have no idea whether VP overpaid for Brandon Hire. What I do know is that VP is a very successful and savvy family firm that was incorporated in 1950. I have been invested in them for many years and would trust their judgment. It is inconceivable that they did not weigh up this decision from many perspectives. Brandon Hire is hardly an unknown quantity to them - it was a competitor for years, indeed once upon a time I had shares in them myself. VPs' profit margins are healthily above 10% so they must be doing something right. Is VP's chart toppy? EPS estimate for the year to March 2019 has been increased to 94p, giving a prospective PE ratio of less than 10.
Some analysts do not know what they are talking about because they do not have the necessary accounting knowledge and analytical skills to delve into the details. Moreover, they are using the wrong measurement of success, using EBITDA as the main indicator. This financial ratio was invented in the 1990's during the internet boom when most startup companies were losing money, so EBITDA would show them in a better light. Please remember that interest, tax, depreciation and amortisation are a real cost. Interest and tax need to be paid. Depreciation and amortisation reflect the use of the fixed assets which are depreciating as they get older, and they will be replaced one day. There will be a cash effect. EBITDA should not be used for mature businesses and most companies. Management and their house brokers should not be fixated by EBITDA. The latest audited accounts of Brandon Hire show a turnover of £80 million, EBITDA £6 million, but wait, the profit after tax is a mere £511,000. Using the cash consideration paid by VP Plc of £41.6 million the P/E ratio paid for this acquisition is 81 times [£41,600,000 / £511,000], which is an astonishing figure. VP Plc will assume their debt of £27.2 million. Assuming they negotiate with the Finance Lease creditors and pay off those debts immediately, it is true that Brandon Hire will save a lot of interest and increase the bottom line profit. The total enterprise value paid for this acquisition is £68.8 million [41.6 + 27.2 debt]. It would appear to me that VP Plc has done this deal for commercial reason to increase market share However, Brandon has 143 locations with 900 employees. It will not be easy to integrate successfully and rapidly. I believe that VP has over estimated the effect of synergy and under estimated the scale of the challenge of integration. If the debt of £27.2 million remains in Brandon's balance sheet it will probably produce a similar bottom line profit of £500,000 per annum. This will not enhance VP's earnings per share, but in fact will depress it. I believe that this is a very poor decision by VP in taking over Brandon Hire. Brandon Hire must have been struggling to some degree because it had little cash but a large debt and producing little profit despite a high turnover. Turnover is vanity, profit is sanity and cash is king. VP is misguided. The management has failed to see the motto above. There is a lot of price cutting now in the plant hire industry, akin to the price wars between supermarkets. You know what that will lead to profitability, earnings per share, cash flow and the company's ability to pay a dividend. P/E ratio will go down so will the share price. VP's share chart looks toppy and is now turning downwards. It is time to take profit if you own shares in this company.
Three positives arriving here:- (1) Recent positive trading update .... We anticipate that Vp will make further progress in the current financial year. ... suggests that the interims (due on 21st November) will reveal an increase in eps. (2) Budget (on 22nd November) trailed to be housing construction friendly. (3) Today's announcement of the buy of Brandon Hire. Said to be earnings enhancing in the first year. It's a well run business. The shares are tightly held, so it's more of a buy and hold stock. Happy to hold these.
ed 123
VP don't seem to be getting any benefit at all from rumoured construction friendly budget in November, housebuilders v.strong in the last month.
I stand corrected. My knowledge of the business goes back to 2003 (@ 94p I now realise!). Recent comments from Mgt that they had been looking for the right overseas acquisition for some time gave me the impression that this was the first major non-U.K. buy. Nonetheless I like their considered style and can't imagine them overextending themselves again.
Yes ..and they were overstretched financially and exited in 1996 from the US platform rental market, selling American Hi-Lift to Primeco for £44.6m to reduce gearing.
Did VP (Vibroplant) go into the US in the past? Did it end in tears?
A good update with the AGM results today. The usual understated tone of the Board, while this excellent business maintains its strong performance. UK stable, including continued high activity in house building alongside the bedrock of infrastructure & construction. New acquisitions started well. Fledgling Australia / Asia Pac test & measurement business going well. This is the most significant news as this is the first time VP has established a significant overseas business. They seem to have managed that Aus acquisition as well as they've been doing for years with many U.K. acquisitions. Very clearly signalled on target results to come for 2017, which will therefore mean significant growth over 2016, and 2018 already started well. Thanks VP.
Excellent results. Good progress in U.K. both organically and through acquisition. Progress in Aus with recent acquisition bedding in nicely. Oil sector starting to show signs of recovery. Above all the outlook statement was positive despite VP mgts usual considered style. UK outlook good buoyed by need for housing, AMP6, rail electrification & new acquisitions. Aus outlook good supported by increased Aus Govt spend on infrastructure. Oil & gas recovering. European foothold small but growing. This share has long been a good bet: low risk due to the infrastructure element, well run with consistent growth but now the international opportunities add a new dimension. Compares very favourably with the rest of the equipment hire sector, most of which have a higher profile.
From the headlines, really good results. 9,000 shares traded by noon.....
Earnings came in about 5% ahead of consensus. Shares marked 5% higher at opening. This has been a reliable holding for me. No plans to sell any.
ed 123
This is ticking up nicely ahead of results in the morning. Likely to be an improvement in the Asian oil related business and should be positive news from Aus on synergies and growth in the businesses in that region.
New research out from Equity Development
Good move I think Woody. Trading update imminent. Expecting positive news re oil price recovery and Aus.
Chat Pages: 36  35  34  33  32  31  30  29  28  27  26  25  Older
Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

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

P:30 V: D:20180123 13:59:01