Interim Management Statement

 
TIDMVP. 
 
Press Release   11 February 2010 
 
 
                                     Vp plc 
 
                             ("Vp" or "the Group") 
 
                         Interim Management Statement 
 
Vp  plc, the equipment  rental specialist, today  provides an update on business 
performance since the announcement of its Interim Results on 27 November 2009. 
 
Market  conditions have remained  stable, although the  adverse weather in early 
January  did exacerbate the seasonal  winter slowdown for most,  but not all, of 
our  businesses.   Demand,  however  has  subsequently  recovered to anticipated 
levels  of activity.  We expect to report  full year results in line with market 
expectations. 
 
General  construction has  remained challenging,  and whilst  we have  seen some 
tentative recovery in demand from housebuilders, commercial construction remains 
very  subdued, a  feature we  expect to  continue.  The regulated infrastructure 
sector   has  held  up  well,  and  although  we  anticipate  good  demand  from 
transmission,  and a potential  improvement in rail,  the end of  the AMP4 water 
programme  will lead to an expected  hiatus before the AMP5 activity commences. 
The  oil and gas exploration  market is stable, with  improving prospects in the 
medium term. 
 
Investment  in the  business has  continued in  support of opportunities as they 
have arisen.  We have continued to generate strong operational cash flow in line 
with  our plan  to further  reduce net  debt.  Debt  levels are  well within the 
capacity  of our  committed facilities  and their  associated covenants, and the 
balance sheet remains robust. 
 
The  Group's  outlook  for  the  current  year remains unchanged.  We anticipate 
relative  overall stability, with  some downward pressure  in specific markets. 
However,  our broad range  of specialist rental  activities and market diversity 
should  continue  to  provide  some  resilience.  We believe that the Group will 
deliver  a very  satisfactory result  in the  current financial  year, given the 
challenging trading environment. 
 
                                    - Ends - 
 
For further information please contact: 
 
 Vp plc 
 
 Jeremy Pilkington, Chairman                          Tel: [phone] 
 
 [e-mail] 
 <mailto:[e-mail]> 
 
 Neil Stothard, Group Managing Director               Tel: [phone] 
 
 [e-mail] 
 <mailto:[e-mail]> 
 
 Mike Holt, Group Finance Director                    Tel: [phone] 
 
 [e-mail] <mailto:[e-mail]> 
 
Media enquiries: 
 
 
 Abchurch Communications 
 
 Sarah Hollins / George Parker                        Tel: [phone] 
 
 [e-mail]                        www.abchurch-group.com 
                                              <http://www.abchurch-group.com/> 
 
 
 
 
Notes to editors: 
 
 
About Vp 
The  main  activity  of  the  Group  is equipment rental and associated services 
principally conducted within the UK.  Vp plc listed on the London Stock Exchange 
in 1973. 
 
The Group is focused on six businesses: 
 
Airpac Bukom Oilfield Services 
Equipment and service providers to the international oil and gas exploration and 
development markets. 
 
Groundforce 
Excavation  support  systems  and  specialist  products  for  the  water,  civil 
engineering and construction industries. 
 
Hire Station 
Tools and specialist products for industry, construction and home owners. 
 
Torrent Trackside 
Infrastructure  equipment and services for  the railway renewals and maintenance 
industry. 
 
TPA 
Portable  roadway systems,  bridging, fencing  and barriers  primarily to the UK 
market, but also in the Republic of Ireland and mainland Europe. 
 
UK Forks 
Rough  terrain material handling equipment for industry, residential and general 
construction. 
 
Further information can be found at www.vpplc.com <http://www.vpplc.com/> 
 
 
 
 
[HUG#1383195]