Vp PLC on Wednesday said it expects meaningful increases in revenue in the coming financial year, rather than the current financial year.
Shares in the Harrogate, England-based equipment rental company fell 11% to 495.00 pence each on Wednesday afternoon in London.
Vp cited ‘current market headwinds, particularly in construction and water’.
For the current financial year ending March 31, the company expects an adjusted pretax profit between £26 million and £29 million. For financial 2025, it had reported an adjusted profit of £36.7 million, which had been down 8.0% from £39.9 million in financial 2024.
The firm said: ‘Across the sectors in which we operate, we continue to see growth and strong demand in energy transmission, whilst rail activity remains steady yet subdued. We remain positive about prospects in water and confident in our ability to take advantage of the significant increase in expenditure to come in AMP8. However, while we have seen an uptick in design and planning work, we now expect to see meaningful increases in water revenues in FY27 rather than the current financial year. General construction remains subdued, with follow-on implications for activity levels across several Vp businesses.’
AMP8 is an asset management period, a five-year regulatory cycle for the water industry in England & Wales. The period runs from April 2025 to March 2030.
Vp said: ‘In the group’s smaller end markets, performance in housebuilding has benefitted from operating model changes made in the last financial year but overall activity levels remain subdued. Energy continues to be impacted by macroeconomic factors with increased project activity expected in FY27.’
Chief Executive Officer Alice Woodwark said: ‘Vp remains committed to its strategy of offering a diversified range of specialist equipment and expertise to clients across a portfolio of critical market sectors. While this diversity and breadth gives our business market-leading resilience and opportunity, it is not immune to general trading conditions in construction and delays to major infrastructure programme spend in key sectors. Our progress in transforming Brandon, which is on track for completion within the financial year, and our commitment to a strategy of growth and operational excellence position us well to take advantage of future opportunities across our markets.’
Brandon Hire Station is a specialist tool, plant and equipment rental company that caters to construction, infrastructure and industrial sectors. It has been owned by Vp since November 2017.
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