Vp Share Discussion Threads

[jimbox1] 25/11/2009 12:01

edmundshaw, I agree. Worth buying for the divi and eventual recovery.

[edmundshaw] 25/11/2009 09:44

Looking cheap here. So I have acquired a few...

News from competitor Speedy Hire today: expects H2 break-even after first-half £4.8m adjusted loss (£13.6m unadjusted. Ouch). That might explain today's fall here. Altium has downgraded SDY to a sell.

I consider VP a more robust business.

Results Friday.

[martinc] 27/8/2009 17:51

No, idea, except to say that VP seems quite prone to sudden large movements for no particular reason.

[greenslug] 27/8/2009 16:56

Whats going on here then?

[green sand] 18/8/2009 13:27

18/08/09 - 11:10 Vp Group upgraded to buy from hold at Panmure BFN

Vp Group upgraded to buy from hold at Panmure Gordon, TP increased to 214p from 161p

Business Financial Newswire

IMS suggests the company continues to trade in line with expectations despite clear uncertainties, particularly in the public sector, says Panmure Gordon. Target price based on 8x 2010E below-consensus EPS, which remains below peers such as Speedy Hire currently experiencing a rerating. Broker points o 39% potential upside to target and a 7% yield on offer with 2.5x cover on trough EPS.


Story provided by Business Financial Newswire

Good luck

GS

[jimbox1] 29/5/2009 08:15

Good results, given the present economic circumstances. The reduction in administrative costs shows that the management has responded effectively to slowing market conditions.

A steady business with a dividend yield over 7%. Quite happy with that.

[green sand] 28/1/2009 10:55

Not just fork lifts on building sites!



Good luck

GS

[deadly] 25/11/2008 10:10

Once again excellent results. Improved margin, 15% profit growth, 7% turnover, lower debt. But the share price continues to sink. Only negative is unclear outlook, which is known to everyone anyway i.e. it's a known unknown, to use a well-known phrase!

[martinc] 21/11/2008 22:41

I think it's a case of one out; all out. Somebody saw the price shift down a bit, and it was a Friday afternoon in a falling market, so everybody else left in a hurry too.

We'll see next week! I'd have thought their market would be pretty tough now.

[greenslug] 21/11/2008 17:14

something strange going on here?

[deadly] 19/8/2008 15:47

Yes, this stock has been murdered for no good reason, like many others though.
Sooner or later it will recover strongly, either by a takeover or when reality returns.

[jimbox1] 19/8/2008 09:38

Good trading update today. Can't believe how cheap these shares are.

[papalpower] 01/8/2008 03:42

Yes, thats why I say charting can be ok for long term trends, but is often very wrong in the short term, as the short term is driven by market sentiment.

[ariesr] 01/8/2008 02:23

PapalPower - 12 Apr'08 - 03:01 - 20 of 40

[papalpower] 01/8/2008 01:58

A write up at TMF :






.

[pork belly] 14/7/2008 19:07

Recommendations
Vp - STRONG BUY
Companies: VP.
14/07/2008

Recommended here as a strong buy at 380p last year, equipment rental specialist Vp is currently unloved in terms of its market valuation, yet the company continues to please with positive developments.

In its latest upbeat news, Harrogate-based Vp flagged up the acquisition of the tools and 'telehandler' fleet of UCS Plant, part of construction services group Rand, for £900,000. Significantly, Vp has signed a three-year sole supplier deal to hire out tools and other specialist equipment to two Rand subsidiaries, in a move that should foster a long-term relationship.

As Growth Company Investor has oft outlined, Vp offers investors access to strong levels of organic growth, upside from astute acquisitions and earnings resilience through its diversified market exposure.

This is offered through a focus on six businesses ranging from Hire Station, which provides tools for industry and construction, and TPA, a provider of portable roadway systems, fencing and barriers, to Torrent Trackside, which supplies products to the railway renewals and maintenance industry.

In addition, Vp offers exposure to secure spend in sectors such as water and civil engineering through its excavation support systems operation Groundforce, as well as access to the buoyant oil and gas exploration sector through its Airpac business.

In June, Vp demonstrated the efficacy of its strategy by announcing record profits for the year to March. Adjusted pre-tax profits grew by almost 40% to £20.2m, on turnover increased to £149.3m (2007: £121.6m). From earnings up 48% at 36.1p, shareholders were treated to a 27% rise in the total dividend to 10.5p.

We remain fervent fans of Vp, which represents very good value at present levels and has a great track record in terms of dividends. Keep buying.

Growth Company Investor subscribers have full access to all our AIM and small-cap share recommendations. To subscribe today with a half-price offer, and gain immediate access to all the recommendations, click here.

James Crux
Market cap: £100.9m
PE Forecast: 6.1
PE Historic: 6.1
Share price: 218.5p

[jk35] 30/6/2008 16:10

..did say in post No33, that the shares would drift lower, from the break at £3, but now for the brave there may be a quick 50p, if it can hold a few days above 250.
Bought a few at 256, tightish stop of 240..target 300.
lets see.........

[jimbox1] 17/6/2008 16:58

Werna78,

Depreciation in 2008 was 11.9% of revenue compared with 11.6% in 2007 so the change in depreciation was a minor factor affecting operating margins. Of more significance was the fact that admin expenses grew only 5% compared with 23% revenue growth. This meant that the Operating Margin improved by almost two percentage points to 15.4%.

In his statement the Chairman acknowledged the weakness in the housing sector (which constitutes about 10% of VP's business, I believe) and said, "...any softness here will be more than offset by buoyancy elsewhere, particularly within the oil and gas and electricity transmission sectors."

If you are short for fears of the housing sector, good luck to you. I'm long for exposure to the oil and gas and electricity transmission sectors.

[werdna78] 16/6/2008 13:31

Hi jimbox,
I agree that it could be misleading to measure the annual capex against growth in revenues. Therefore if you compare depreciation growth vs sales growth this should elimiate the problem of purchasing capex at the end of a financial period.

Sales £149 million vs 122 million (up 22%)
Depreciation £17.8 million vs £14.1 million (up 26%)

Therefore their utilisation of assets is getting worse.

I'm sure that the management were confident at renting out the equipment when they purchased it but the reality is that there is a massive reduction in work within the construction industry. If Government spending starts to dry up as well they could be in real trouble.

[jimbox1] 11/6/2008 00:01

werdna78, the timing of capital expenditure on new equipment is key to whether any revenue is recorded in the financial year. For example, if it all came at the end of the year, the revenue increase would be in the following and subsequent years.
Much also depends on the life of the equipment concerned. The capex is a lump in year one, but the revenue increase occurs over the following 5 years or so. Therefore comparing capex with the revenue growth in a single year is likely to give a misleading conclusion.
I am a long term holder of VP and will add more on any further weakness. IMO the results were excellent and the company appears confident about the future despite the gloom in the papers. The experienced management is unlikely to have spent money on equipment that they are not confident of renting out.

[jk35] 05/6/2008 15:57

Good results, earnings,profits, dividends all well up, rosy outlook.....but i sold out yesterday, having held from 198.
Mainly because the share price was precariously placed at support levels, and since january has been trapped in a 40p range.
For me now, one to stick on the watchlist and wait until this great company gets noticed and gains a bit of momentum to break over 340 ,for a nice run up to £4,...otherwise i fear once the fanfare of results fade, so could the shares...any break below £3 would be a sell.

[talltalk] 05/6/2008 15:00

I am drawn to the company bacause they are less consumer related than others.
( more recession resistant ? )

The earnings split in previous years seems to have been more even for H1 - H2.
Rivaldo - Your point above is very relevant.

I think on balance I will probably watch for the time being.

Your comments have all been well reasoned and much appreciated. Thank you
for both replies

Nice quiet board

tt

[contrarian2investor] 05/6/2008 12:46

talktalk,

The summary is that VP has executed their plan prior to results and are planning for the slow down by increasing their diversification into higher margin sectors away from general construction.
They have increased the dividend when they need not have done so in this current climate. When it would possibly have been more prudent to keep cash readily available if a recession becomes entrenched.

In comparison to its peers the results are exceptional IMHO.

As you will see historically this VP BB is not BLOGGED that much because the long-term holders do not always feel the need to comment on the stocks every movement.

What is your analysis of the results tt?

c2i