Vp Share Discussion Threads

[rcturner2] 08/6/2023 09:08

The dividend yield at the current price is 5.75%.

[edmonda] 07/6/2023 07:48

We published a new note today on Vp plc who published in-line numbers & a positive outlook, despite experiencing softer conditions in some end markets. Indeed impressively, FY’23 revenues, adjusted PBTA, EPS & ROCE came in at £371.5m (+6% vs LY), £40.5m (+4%), 79p (+11%) & 14.4% respectively. This reflects solid performances in UK infrastructure (e.g. energy, rail & water) and RMI, augmented by a bounce back in International (AirPac & TR), where EBIT margins expanded to 8.1% (+4.9%) on sales up 23.9% to £38.1m.

This puts the stock (at 650p) on attractive trailing EV/EBITDA, EV/EBIT & PE multiples of 4.3x, 8.6x and 8.2x – whilst similarly paying a generous 4.2% dividend yield. We believe this is simply too cheap for a best-in-class, GDP resilient business with a proven track record.

Link to our research report here:

[the bug] 18/4/2023 13:49

This is looking cheap, very unloved !

[edmonda] 13/4/2023 15:13

On track to again grow profitably in FY’24 (new note from Equity Development)

Today’s “in line” FY23 trading update from Vp reiterates that it had made “good progress within its core markets” since the interims in Nov’22. It has benefitted from strength in civil engineering (eg highways) and infrastructure (eg water, rail & energy), alongside successfully lifting prices to cover input inflation as well as rightsizing some parts of the group to further reduce costs.

Elsewhere, the international energy & testing divisions also performed well, while residential housing has stabilised at lower levels - partly supported by robust RMI activity where millions of properties need modernisation.

As such, we retain our projections and £11.30/share valuation. Based on forecasted FY’23 revenues, adjusted PBTA and EPS of £365.5m, £40.2m & 75.9p (+6.5% YoY) respectively - climbing to £376.5m, £43.3m and 81.3p (7.2%) in FY’24. This in turn puts the stock (at 670p) on attractive FY’24 EV/EBITDA, EV/EBIT & PE multiples of 4.2x, 8.2x and 8.2x – whilst paying a 6.0% dividend yield. We believe this is simply far too cheap for a best-in-class, economically resilient business with a proven track record through thick & thin.

[edmonda] 29/11/2022 10:32

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

[sleepy] 22/8/2022 16:28

Why does VP still appear to be in an offer period?

[sleepy] 17/8/2022 15:33

So ………;. No deal. Trust the parent company will cover all the costs. I’m watching

[my retirement fund] 20/4/2022 16:05

very quiet here

[edmonda] 08/4/2022 08:06

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:

[edmonda] 30/11/2021 07:35

#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.

[robertball] 04/10/2021 20:14

Words like "supportive" and reference to costs make the trading statement a profit warning in my eyes. Avoid and takeProfit.

[edmonda] 04/10/2021 10:51

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:

[tomps2] 30/7/2021 09:37

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: