Vp Share Discussion Threads

[kaffee] 26/7/2021 11:41

He was probably preaching that schyte when he bought Tesco....

[brummy_git] 22/7/2021 07:12

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

[tomps2] 25/6/2021 08:22

David Thornton ‘slams’ VP Group (VP.) in the latest PIWORLD/Stockopedia StockSlam at 15m30s

Watch the video here:

Or listen to the podcast here:

[edmonda] 08/6/2021 17:47

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:

[edmonda] 08/6/2021 08:06

#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.

[edmonda] 07/6/2021 13:20

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:

[typo56] 03/6/2021 14:28

I see VP. are being kicked out of the SmallCap index. Not sure why. Pressumably lack of liquidity.

[edmonda] 24/5/2021 12:11

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:

[edmonda] 07/4/2021 07:30

#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.

[brummy_git] 07/12/2020 07:50

Latest commentary here wrt today's positive H1'21 results from Vp

hxxps://www.linkedin.com/posts/paul-hill-a5994116_vp-cv-activity-6741608722570772480-kgpn

[edmonda] 06/10/2020 07:52

another encouraging update: revs up from 55% of pre-Covid levels in April to c 85%. H1 saw £41m of cashflow + Sept net debt fell to £118.7m vs £159.8m in March.

Modest ratings for the shares: 7.2x PER, 1.5x Price:Book and 3.9x EV/EBITDA - see new research note from Equity Development here:

[edmonda] 23/7/2020 07:57

Positive news in AGM update that, after a sharp -45% decline in April, trading has significantly improved, with revenues “now running at >80% of prior year levels.” driven by increased homebuilding, construction & infrastructure activity.

Encouragingly the group has generated £22m of positive cashflow over the past 3 months, with net debt closing June lower at £138m vs £159.8m in Mar’20.

According to new research note from Equity Dev, at 700p the shares appear lowly rated - equivalent to trailing FY20 multiples of 7.8x PER, 1.7x Price:Book and 4.3x EV/EBITDA. Read full note here

[brummy_git] 23/7/2020 07:21

Latest commentary here wrt today's positive trading update from Vp ahead of its 10am AGM

hxxps://www.linkedin.com/posts/paul-hill-a5994116_bltg-covid19-bltg-activity-6691597794777604096-CW9z

[edmonda] 10/6/2020 07:56

Results are in line , with adj PBTA reaching a record level. Obviously coronavirus means uncertain outlook in short term , but even without forecasts yet the shares at 800p appear attractively priced, trading on trailing 8.9x PER, 1.9x price:book and 4.9x EV/EBITDA multiples - offering upside potential for patient investors vs peer group averages.

Full note from Equity Development just published (with debt and re-opening of construction addressed) . Free access here:

[pugugly] 25/3/2020 08:03

ed:> How worried are you about debt? Also lot of noise in press about need to lock down parts of the construction industry - ED and Company (gut feel) possilby too confident about short term impact.

[edmonda] 25/3/2020 07:38

Amidst a rush of updates today, Vp look in good shape: trading 'satisfactory' since interims in Dec and FY seen just marginally below expectations.

New research from Equity Development just published shows low rating: trailing 5.5x PE, 1.2x Price:Book and 3.8x EV/EBITDA - vs 860p/share fair value.

Click here for full note:

[buffetteer] 10/2/2020 08:41

Seems pretty good new contract win
hxxps://www.railadvent.co.uk/2020/02/network-rail-awards-257m-portable-plant-contract.html

[edmonda] 04/12/2019 08:11

Interims show 'good progress' and Board 'confident of a positive full year' says the Chairman

PBT £25.9m , EPS 52.5p and H1 div 8.45p +3%.

New research note out from Equity Development, notes Group's resilience and retains fair value at 1075p/share. At last close of 890p, the stock trades on EV/EBITDA, EV/EBIT and PER multiples of 5.0x, 9.6x and 9.0x, equivalent to a 10%-30% discount vs the equipment rental sector.

Free access to read, just click here:

[equitydev] 01/10/2019 07:34

hxxps://www.equitydevelopment.co.uk/company/?company=Vp&c=zgDO

The holy grail for corporates is to create a sustainable edge that produces superior returns over the long term, and whose advantage is not eroded by time or competition. We think specialist plant hire firm Vp, with its strong niche positions, has achieved this. What’s more at 810p, its shares today trade at an historically low 8.0x PER, whilst also paying a 4.0% yield.

Sure there are some macro headwinds, such as Brexit, lackluster global growth and US vs China trade wars. Yet equally the company is performing well, as illustrated again this morning. Here the group said that FY20 was on track to hit expectations. UK infrastructure spend is “holding up well”, whilst housebuilding remains stable, due to near-record levels of employment, low borrowing costs, good mortgage availability and the popular Help to Buy scheme. Partly offset by softness in general construction, particularly centred on London and the South East.

Elsewhere, the £69.2m acquisition of Brandon Hire in Nov’17 has been successfully integrated with Hire Station. Some of the synergies will be realised later, albeit we estimate the deal should ultimately deliver c.£4m of annualised savings, related to procurement/cost improvements, economies of scale and greater asset/inventory utilisation. In turn, boosting the original RoI from 8.7% to >14% - materially above Vp’s ‘through cycle’ cost of capital.

Lastly, despite experiencing a “softer start to FY20” than anticipated, Vp’s International division has recently enjoyed an uptick in activity levels across petrochemical and test & measurement. All told, we reiterate our adjusted FY20 PBT forecast of £49.6m and 1,075p/share valuation – offering 33% upside to patient investors.

[kingston78] 25/7/2019 15:12

Today's statement on current year's trading is relatively subdued compared with the company's rosy and upbeat annual and interim statements.

The construction industry is in decline and there will be more competition for lower margins.

VP's overseas divisions are small.

VP has not reduced its net debt and overall liability since its expensive acquisition of Brandon Hire.

The Competition and Market Authority will continue to investigate into VP for cartel malpractice. Fines and penalties by regulatory authorities throughout the world, including the UK,are getting heavier and harsher. VP's provision on this aspect is unlikely to be adequate. Moreover, it is quite possible that VP's other divisions may be investigated.

The weekly chart did not bold well for a week, with the signal cutting down. Now the share price has fallen below £8 the next stop will be £7 testing its previous low.

[edmonda] 25/7/2019 12:14

More detail on the above is in a published research report , freely available here :

[edmonda] 25/7/2019 12:12

Today the company said at its AGM that it continues to “make progress”. Adding that “YTD trading had been broadly in line with expectations” - supported by its core UK infrastructure, construction and housebuilding activities, particularly outside of the ‘more subdued’ South East and London areas. Similarly, the International division (re oil & gas and test & measurement) has also experienced a “satisfactory” first 4 months.

As such, we make no changes to our forecasts, but conservatively nudge down the valuation

[kingston78] 09/7/2019 13:27

VP's continues to pay higher dividend year after year. This is unsustainable because the Group does not generate sufficient cash.

It is no good to look at the Group's announced statistics because they are in a way distorted and meaningless.

The balance sheet tells me a different story. The company has higher Trade Creditors and a huge bank borrowing (to finance the Brandon Hire acquisition). On the other side of the equation it has huge intangibles. You know what intangibles mean. They don't have tangible value. They are there to balance the books (purchase price minus net book value/fair value acquired). It added £55 million of intangibles to its balance sheet when acquiring Brandon Hire.

In plain English, this is money paid upfront to the Vendors of the Brandon Hire business in the hope that the business will generate sufficient cash in the future.
Any hiccup will result in write-down in the future, as we have witnessed too often elsewhere.

There will be more bad debts to hit the plant hire division. The only saviour so far is a piece of financial engineering in that the company has used its cheap debt to pay off £25 million expensive loan inherited from Brandon Hire, thus saving the group interest charges. This will enhance group profit and earnings.

VP's future is not as rosy as the directors have painted. Brandon Hire was acquired in November 2017. It contributed only 4 months worth for the year ended 31/3/2018. For the year ended 31/3/2019 Brandon contributed a full 12 months to the group. All the statistics of course are +++++. But the bottom line is more pedestrian, which for reasons mentioned above does not justify higher dividend, in my opinion. Time will tell whether my analysis is correct.