Solid H1 results from Vp as H1 sales rose +5.9% to £186.5m. It trades on modest CY EV/EBITDA and EV/EBIT multiples of 4.5x and 9.0x respectively and Equity Development retains its headline FY23 numbers and fair value of £11.30/share
Read new research note here, free access:
NB management webinar this Thursday |
Why does VP still appear to be in an offer period? |
So ………;. No deal. Trust the parent company will cover all the costs. I’m watching |
very quiet here |
FY trading @Vpplc was ‘ahead of Board expectations’. We are also optimistic about the medium-to-long term trajectory and upgrade our FY22 estimates, but for now retain a 1130p/share valuation.
As you can read in new ED note here: |
 #VP. UK infrastructure currently running at c. 40% above pre-pandemic levels (Source: ONS), driven by multi-year projects such as HS2, Hinkley Point & off-shore wind (re Transmission). These are all areas of expertise for specialist equipment rental, Vp. At the same time Vp has to content with the widespread material, labour & transport shortages, on top of surging input cost inflation.
This is causing disruption for most operators, but as evidenced by today’s improvement in H1’22 EBIT margins (12.8% vs 7.6% LY) and ROCE (13.5% vs 10.3%), neither profitability nor growth appears to have been too badly affected, regardless of some construction schemes are being pushed to the right. Here Vp has successfully managed the industry’s supply chain challenges via a combination of early fleet ordering, internal efficiencies, greater plant utilisation, fewer equipment disposals and improved pricing as 12 month contracts roll-over.
Meaning that all told, H1 revenues & adjusted PBT came in at £176.1m vs £182.8m H1’20 (or 96% of pre-Covid levels) & £20.2m (£8.6m) respectively. Consequently we reiterate our FY22 numbers and fair value of £11.30/share. With the stock (at 955p) being attractively priced both in absolute terms and vs peers - trading on FY22 multiples (pre IFRS16) of 14.0x PER, 12.3x EV/EBIT and 6.0x EV/EBITDA. |
Words like "supportive" and reference to costs make the trading statement a profit warning in my eyes. Avoid and takeProfit. |
VP plc - “in excellent shape” as the recovery continues! New note out today from Equity Development following the company's trading update this morning - Vp is tightly managing costs, enhancing its operating leverage, and is “in excellent shape to capitalise” as the economy rebounds.
Check out full note here: |
Andrew Hollingworth mentions VP (VP.) in the latest PIWORLD Interview at 17m29s and again at 17m53s
Watch the video here:
Or listen to the podcast here: |
He was probably preaching that schyte when he bought Tesco.... |
As Warren Buffet says: “It's far better to buy a wonderful business at a fair price, than a fair company at a wonderful price”.
Equipment rental specialist Vp fits the bill - today releasing another positive trading update.
Find out all the news, commentary and sector valuation metrics & KPIs here.
www.linkedin.com/posts/paul-hill-a5994116_vp-background-sector-multiples-kpis-activity-6823855756757012481-Sq1E |
David Thornton ‘slams’ VP Group (VP.) in the latest PIWORLD/Stockopedia StockSlam at 15m30s
Watch the video here:
Or listen to the podcast here: |
Vp plc investor webinar recording now available!
Jeremy Pilkington, Chairman, Neil Stothard, CEO, and Allison Bainbridge, CFO, discuss their full year results. They cover the temporary dip in ROACE and how this is already recovering post the lifting of lockdown, their optimism for potential organic growth driven by a rebounding economy, and the increasing digitisation of the business.
Full presentation and Q&A available to watch here: |
#VP. Our valuation ticks up from £11.00 to £11.30/share, meaning the shares at 870p trade on modest 11.9x PER, 11.4x EV/EBIT and 5.3x EV/EBITDA multiples vs peer group averages. |
Just a reminder that Vp plc will be hosting an investor webinar TOMORROW, 8th June (12.00pm) with a presentation and Q&A session to discuss FY results.
Please click on the link to register for this event with Vp's CEO, Neil Stothard and FD, Allison Bainbridge: |
I see VP. are being kicked out of the SmallCap index. Not sure why. Pressumably lack of liquidity. |
Vp plc will be hosting an investor webinar on 8th June (12.00pm) with a presentation and Q&A session to discuss FY results.
Please click on the link to register for this event with Vp's CEO, Neil Stothard and FD, Allison Bainbridge: |
#VP. Given Britain’s successful vaccine rollout, prospects have improved dramatically over the past 12 months, with Vp saying this morning that FY21 results were “in line with expectations”, and it exited the period on a run-rate of c.“95% of pre-Covid levels”. Despite “some sectors (eg events & hospitality) remaining closed and infrastructure (eg AMP7 and CP6) not yet fully up to speed”.
We are forecasting FY21 adjusted PBT of £23.0m on sales of £299.6m – ending the year with £124m of net debt. The latter reflecting tight working capital control (re debtors), lower fleet capex and approx £8m of deferred VAT to be repaid in FY22.
Similarly, we have upgraded our FY22 PBT by 12% to £33.5m, alongside increasing the valuation from £9 to £11 per share. What’s more, in light of Vp’s consistent track record of innovation, execution & above-average returns, we could readily see the stock tracking towards £16.80 by 2024 - assuming 5% organic top line growth can be achieved across the economic cycle. |
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