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
  +30.00p +3.53% 880.00p 850.00p 880.00p 880.00p 880.00p 880.00p 782 10:11:58
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 248.7 30.3 60.3 14.6 353.36

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Date Time Title Posts
16/2/201810:34Vp PLC - Specialist Equipment Rental299
21/3/200814:01VP PLC Research shows it's a strong buy for 2002>>555
04/12/200607:20VP cracking set of results...why is this not much higher?-
11/3/200610:23VP plc16

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VP Daily Update: VP is listed in the Support Services sector of the London Stock Exchange with ticker VP.. The last closing price for VP was 850p.
VP has a 4 week average price of 850p and a 12 week average price of 835p.
The 1 year high share price is 940p while the 1 year low share price is currently 785p.
There are currently 40,154,253 shares in issue and the average daily traded volume is 11,075 shares. The market capitalisation of VP is £353,357,426.40.
kingston78: There is so little trading in VP's shares that it is difficult to say whether the share price is "genuine", for example, someone bought 30 shares at 880. Why would a small investor buy only 30 shares at a cost of £264 (plus broker's commission). It does not really make sense that this kind of small buying and selling continue, so far VP is concerned. Market makers, or indeed, anyone for that matter can manipulate the share price by buying or selling tiny amount. I would say this is a false market.
kingston78: 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.
kingston78: 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?
kingston78: 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.
kirkie001: Interesting comment, based on not much more than your perception that the share price should be lower, rather than any actual knowledge or insight?
kingston78: 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.
kirkie001: Unlike this company's share price to get so excited! I can't believe it's down to paid for "research" published by Equity Development - is there some other reason?
rhomboid: IC tip today; "Share price performance among rental companies has been uninspiring over the past year. Valuations for small caps such as Speedy Hire (SDY) and HSS Hire (HSS) have slumped alarmingly, and even FTSE 350 constituent Ashtead (AHT) hasn't escaped the general markdown. However, the share price of Vp (VP.) has flatlined over the past 12-months. That implies resilience in the face of deteriorating markets, which is also borne out by the share price beta of just 0.1 (see table), and a narrow trading band through much of the year. However, Vp's shares aren't just a safety play - we also view them as a potentially lucrative recovery buy. Vp's contract mix does, indeed, include defensive strands through exposure to the UK water industry's capital spending and railways maintenance work. But that doesn't necessarily mean Vp's shares will underperform once investors regain their appetite for risk taking. That's because Vp, like all equipment-rental operators, has lots of operational gearing - as demand for its equipment rises and revenues respond, its costs stay little changed." " Vp is also likely to be a beneficiary of end-market recovery in the UK due to its efficient operating structure and proactive management. Its record of never cutting a dividend is an obvious draw for investors. However, there is also an implied upside of around one-third from the current share price of 685p if Vp's rating relative to its peer group - as measured by the price-earnings ratio on their shares - recovers to its historic average. True, this rating discount is mostly in relation to Vp's overseas peers, so the widening has been predominantly linked to the relative decline of the UK's support services sector. The group's focus on specialist segments of the equipment hire market has seen consistent improvement in profit margins and return on capital. The corporate structure comprises six operating divisions: UK Forks, Groundforce, Airpac Bukom Oilfield Services, Hire Station, Torrent Trackside and TPA. The group’s operations stretch across the UK, Ireland and into mainland Europe, and its oil and gas business operates internationally from a network of hubs across the globe. Predictably, this segment of the business has caused some consternation due to the fall-away in capital spending across the oil and gas industry. The effects of the industry-wide retrenchment were reflected in Vp's first-half figures, when Airpac Bukom reported a 25 per cent contraction in revenue, although a focus on cost controls meant that profit margins held up reasonably well. The group continues to see encouraging remits from the construction and housebuilding industries. This was reflected in the performance of Hire Station in the first half, where revenue and profit were up 9 per cent and 27 per cent respectively. All told, the group claims a highly creditable 16.1 per cent return on equity at the half-year mark, against 14.9 per cent in the previous first half." All fwiw
ganthorpe: I went to the AGM. Nothing very exciting. There was I felt confidence that overall things were going well with oil & gas rather slow and water orders getting in gear sfter a quiet first year of the five year regulation period.Construction still strong as probably the largest sector.There was some comment from the floor that progress in the share price was disappointing in view of the excellent record. The Board indicated that they were aware of the problem of getting VP's excellent record recognised better and were working on the matter. I feel that share price progress is not assisted by the low dividend yield and 3.3X covered dividend.There was a comment that about half the large expenditure on hire equipment was for expansion which bodes well for the current year. Overall I feel VP is well diversified to ride cutbacks in individual sectors and a sound if not too exciting investment for the medium term view. I saw the Equity Development note , which seems fair comment except that if markets continue as currently I would hope to see EPS nearer to 60P(v 57.3p) and dividends of around 18.5P (v 17.4P).Just a personal guess. I am just a small shareholder who happens to live near Harrogate. Hope that helps Regards GAN
cestnous: Equity development this am; Commissioned research but still, encouraging. In its IMS this morning, Vp plc said "The Group has continued to trade well through the winter period assisted by relatively mild weather and customer demand has picked up steadily through the early part of 2015. The construction, housebuilding and infrastructure sectors remain strong, though we do anticipate a limited impact on our oil and gas related activities from the recent oil price reduction. The business is trading well, and with a momentum that leads the Board to believe that the Group will deliver results ahead of current market expectations for the year ended 31 March 2015". As a result we are increasing our numbers (again), and are now forecasting adjusted PBT (pre amortisation) for the year to March 2015 of £26 million, (against £20.05m in the previous financial year), followed by £27.5 million in the year to March 2016. Our new EPS forecasts for these 2 years are 52p (to 31/3/15) followed by 55.7p (to 31/3/16). As shown in our note, Vp shares are still very modestly rated against its peer group. On the back of these forecast increases we have raised our share price target from 725p to 775p. Download full report here
VP share price data is direct from the London Stock Exchange
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