We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Vp’s full year update highlights sector-leading results, once again benefiting from the diversity of its end markets and the quality of its specialist businesses.
With results expected to be broadly in line with expectations, we trim our FY24 PBT forecast by c.5% to £39.0m, a shade below the FY23 outturn (£40.2m). We consider this an impressively resilient performance set against a mixed market backdrop.
Under new leadership, a strategic refresh is underway and management is confident in long term prospects. In our view, the valuation is compelling (FY25E P/E of c7x). We reiterate our Fair Value estimate of 1090p per share.
Link to research report: https://www.equitydevelopment.co.uk/research/resilient-fy24-confident-long-term-outlook
Been a tricky year, but the new management sound impressive and hopefully will confirm a more positive outlook. Meanwhile ridiculously cheap
Could still be interested in a buyout. The fact they could not find one @ over £9 two years ago was a very bad time to look for a sale. The reasons for the motivation to sell are unlikely to have changed. The family ownership does make it unlikely that a hostile bid would succeed at less than 100 % premium. That is where the owners think the value should be. Not unrealistic for a company of this quality with this history
Just watched the presentation. Interesting on the one hand talking about acquisitions on the other hand the whisper is that the major family owners would be interested in a sell out. Could be the HS2 impact being responsible which has down a few stock, even ones that not even impacted by the cancelation. I believe the tight ownership of majority share holders is the reason f0r the historically insane spread on this stock, which makes it quite hard to trade if certain fund managers are having to raise cash they are not going to get a good price here. On the other hand this must be a very tempting price to acquire being such a long way from its high. So I think its well worth getting back in with a 7% yield
Something up?
The management of Vp plc highlighted their continued strong returns, as well as discussing the opportunities to develop the businesses digital offering and build on the interest in products which fit clients' ESG priorities. They also covered how they are managing the challenges in the Construction division, while benefiting from growth in transport and energy in the Infrastructure division. The team then answered a range of questions asked by viewers.
Vp plc (LSE: Vp.) is an equipment rental specialist. Interim Results were for the six months ended 30 September 2023 and presented by Anna Bielby (CEO) and Judith McKenna (Group Financial Controller).
The full video has been divided into chapters, as below:
0:00:03 Introduction from CEO, Anna Bielby
0:00:56 Vp's business and Investment Case
0:03:01 Highlights of H1 period & Financial Review
0:09:17 Strategy
0:11:37 ESG
0:12:58 Digital
0:14:07 Operational Review & Vp's markets
0:17:23 Summary
0:18:18 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/vp-plc-investor-presentation-interim-results-30-november-2023
Link here: https://www.equitydevelopment.co.uk/research/delivering-growth-in-uncertain-markets
Vp’s interims confirm another solid performance and continued growth despite the challenging backdrop. Revenue increased by 2.4% to £190.9m and adjusted PBT by 1.9% to £21.9m. This is >50% of our full year forecast (trimmed by c.4% to bring us in line with consensus).
Infrastructure demand has driven a positive H1 performance for Vp’s Groundforce, Torrent and TPA businesses. Vp’s experience is consistent with the latest construction industry data, which showsinfrastructure demand offsetting weakness in general construction and housebuilding. Vp is well positioned to benefit when these softer markets return to growth.
The period was notable for the change in leadership with Anna Bielby succeeding Neil Stothard as Group Chief Executive. Keith Winstanley has been appointed Group CFO and joins the Group in January 2024. We expect the refreshed management team to build on the Group’s strong foundations, with Digital innovation and ESG commitment at the forefront of Group strategy.
Following recent share price moves, Vp still trades at a marked discount to its immediate peers and its historic average rating. Over the long term, Vp has traded on a P/E rating of c.12x and the valuation at today’s share price represents a 30% discount to this level. We maintain our Fair Value estimate of £10.90 per share.
Vp plc (LSE: Vp.), the equipment rental specialist, will be conducting a presentation covering its Interim Results for the six month period ended 30th September 2023.
The online event will take place at 11.00am on Thursday 30th November and will be hosted by Vp management.
The presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Link to register: https://www.equitydevelopment.co.uk/news-and-events/vp-interim-investor-presentation-30november2023
New note with audio summary from Equity Development here: https://www.equitydevelopment.co.uk/research/resilient-h1-performance-compelling-valuation
Vp traded resiliently through H1’24 against a backdrop of challenging macro-economic conditions, which impacted general construction and housebuilding activity, as previously communicated. Infrastructure demand remains supportive across water, transmission and rail, which are benefiting from long-term regulatory programmes (AMP7 for water and CP6 for rail). The Group’s overseas businesses have traded well, at levels ahead of H1 2023.
Vp’s medium term prospects look bright under the leadership of new CEO Anna Bielby and we make no changes to our forecasts.
In our view, Vp’s share price weakness over recent months overlooks the Group’s impressive track record of long-term growth, high returns and the successful navigation of previous economic cycles.
With the shares trading at a 50% discount to historic average trading multiples, we maintain our Fair Value estimate of £10.90 per share.
Note here: https://www.equitydevelopment.co.uk/research/all-fine-on-the-infrastructure-front
Sharp eyed investors would have noticed the recent mixed messages from the UK’s June Construction PMI report, whereby positive output across infrastructure and commercial was offset by weakness in house building due to rising borrowing costs. Equally though, input cost inflation and supply chain bottlenecks were said to be reducing, which should help alleviate margin pressure.
Similarly in today’s ‘on track’ trading statement, Chairman Jeremy Pilkington commented that Vp had also “experienced varying levels of demand across a range of markets.” With water, transmission and rail being “supportive”, in contrast to housebuilding, where activity had stabilised at a level 10% below LY.
Elsewhere Vp’s international divisions (re AirPac & TR Ltd) continue to make good progress. Meaning that overall the Board expects FY’24 to be in line with consensus estimates.
As such, we reiterate our £10.90/share valuation and FY’24 forecasts of adjusted PBTA of £42.8m on revenues up 2.8% to £381.7m. Alongside net debt (pre IFRS 16) closing Mar’24 at £123.9m (vs £134.4m LY), equivalent to a comfortable 1.3x EBITDA.
What’s more, we would argue that for investors with a 2-3 year view, there seems to be exceptional value on offer from this specialist equipment rental group, which has previously demonstrated consistent delivery through thick & thin. In fact at 570p, the stock trades on a PER of only 7.1x whilst paying a bumper 7.0% dividend yield. To us, the shares are simply mis-priced.
But is it a buy yet Ed? Or just flogging a dead horse
Vp plc (LSE: Vp.), the equipment rental specialist, conducted an investor presentation covering its Final Results for the year ended 31st March 2023.
Neil Stothard, Chief Executive Officer, and Anna Bielby, Chief Financial Officer discussed highlights of the period which included earnings growth despite the difficult backdrop, and an increased dividend. Management ran investors through a financial review, as well as detailed overview of markets and trading. They also answered a number of wide-ranging investor questions.
If you missed the live event, the video recording is available here and has been divided into chapters as below:
0:00:03 Introduction & Full Year highlights
0:02:35 Financial review
0:07:58 Markets & Trading review
0:21:15 ESG initiatives
0:24:03 Outlook
0:25:57 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/vp-plc-investor-presentation-fy-results-june-2023
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:
https://www.equitydevelopment.co.uk/research/sustainable-growth-offering-65-potential-upside
Vp plc (LSE: Vp.), the equipment rental specialist, will be conducting a presentation covering its Final Results for the year ended 31st March 2023. The presentation will be hosted by Neil Stothard, Chief Executive Officer, and Anna Bielby, Chief Financial Officer.
The event will take place at 11.00am on Friday 9th June.
The online presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Register here to sign up: https://www.equitydevelopment.co.uk/news-and-events/vp-plc-finalresults-investorpresentation-9june2023
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.
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:
https://www.equitydevelopment.co.uk/research/the-strong-get-stronger
NB management webinar this Thursday
Vp plc (LSE: Vp.), the equipment rental specialist, will be conducting a presentation covering its Interim Results for the period ended 30th September 2022. The presentation will be hosted by Neil Stothard, Chief Executive Officer, and Allison Bainbridge, Group Finance Director.
The event will take place at 10.30am on Thursday 1st December. The online presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end. Sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/vp-plc-investorpresentation-1dec2022
Full link to note here: https://www.equitydevelopment.co.uk/research/sell-off-appears-way-over-done
In their trading update yesterday, VP says that the domestic homebuilding and infrastructure markets were “supportive” in H1’22, with construction “stable”. Here the Group experienced “good” power transmission demand (re renewables & offshore wind) augmented by AMP7 water & civil engineering which both “picked up” in Q2.
We reiterate our FY’23 adjusted PBTA & EPS forecasts of £41.4m & 78.1p respectively on revenues up 4.2% to £365m, with net debt (pre IFRS 16) closing Mar’23 at £130m (ie flat YoY), equivalent to a comfortable 1.4x EBITDA.
This in turn puts Vp on attractive 4.5x EV/EBITDA and 9.2x PE multiples, whilst paying a 5.4% dividend yield and generating a 15% ROCE. Consequently, we think the stock is materially undervalued and instead estimate its worth (at least) £11.30/share – offering more than 50% potential upside from current levels.
Vp – the specialist equipment rental firm - indicated last Tuesday that it remained on track to meet FY’23 expectations, despite also having to manage the ‘Formal Sale Process' (FSP) over the past 4 months. Demand was said to be “good” across the infrastructure and housebuilding sectors, in addition to “encouraging activity levels both in the UK and Internationally in spite of ongoing input cost inflation and supply chain” pressures.
We think this is a creditable performance, and further evidence that Vp is a high-quality group enjoying strong defensible positions in its chosen secular growth markets.
The FSP began on 28th April 2022, and while it received a “good level of interest throughout, none of the proposals submitted met [the Board’s] objectives” – so the process was concluded.
Elsewhere our FY’23 profit forecasts remain unchanged - anticipating adjusted PBTA of £41.4m on revenues up 4.2% to £365m, with net debt (pre IFRS 16) closing Mar’23 at £130m (ie flat YoY), equivalent to a comfortable 1.4x EBITDA. Likewise, we have prudently held the £11.30/share valuation, but plan to revisit these at the October trading update.
Link to full note: https://www.equitydevelopment.co.uk/research/solid-as-a-rock
Vp - FY Results - Investor Presentation recording - June 2022
We hosted an investor presentation with the management of Vp plc, the equipment rental specialist. Neil Stothard, Chief Executive Officer, and Allison Bainbridge, Group Finance Director ran investors through their Full Year results for the year ended 31st March 2022.
The management team discussed the key highlights from the period, provided a Market and Trading overview as well as a detailed Financial review, and answered a range of investor questions.
The video has been divided into chapters as below:
0:00:03 introduction
0:00:30 FY highlights
0:04:11 Market and Trading review
0:24:20 Financial Review
0:29:08 Questions & Answers
Link to full recording: https://www.equitydevelopment.co.uk/research/vp-plc-fyresults-investor-presentation-june2022
Save the Date!
Vp plc (LSE: Vp.), the equipment rental specialist, will be conducting a presentation covering its Final Results for the year ended 30th March 2022. The presentation will be hosted by Neil Stothard, Chief Executive Officer, and Allison Bainbridge, Group Finance Director.
The event will take place at 11.00am on Monday 13th June.
The online presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Sign up to register here:
https://www.equitydevelopment.co.uk/news-and-events/vp-plc-finalresults-investorpresentation-13june
FY trading 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 (free access):
https://www.equitydevelopment.co.uk/research/demand-picks-up-in-final-quarter
We hosted an investor presentation with the management of Vp plc, the equipment rental specialist. Neil Stothard, Chief Executive Officer, and Allison Bainbridge, Group Finance Director ran investors through the detailed financial highlights of their Interim Results.
This included looking at the key sectors and environmental factors which are driving the business, as well as the opportunities for M&A over the next 12 months.
The full video recording is available below:
0:27 Highlights (Neil Stothard, CEO)
4:45 Market and Trading Review
23:34 Financial Review (Allison Bainbridge, FD)
28:54 Investor Q&A
Link: https://www.equitydevelopment.co.uk/research/vp-plc-interim-results-investor-presentation
On another (non-Covid day) this would have been up 10%. Hopefully broker upgrades to follow
#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.
https://www.equitydevelopment.co.uk/research/infrastructure-house-building-powering-ahead