VP (VP.)

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Engaged in equipment rental and associated services, providing products and services to a range of end markets, including infrastructure, construction, house building, and oil and gas, both in the UK and overseas.

21-Nov-2017 – 877.5p – £347.3m – PER 9.84

Interim Results For The Period To End September 2017 – Revenues up 12% to £136.0m (£121.7m last time), PBT before tax and amortisation up 13% to £21.2m (£18.7m last time), ROCE up to 16% from 15.6% last time, EPS (pre amortisation) up 17% to 44.2p per share and the Interim Dividend is up 13% to 6.80p per share (6p last time).

There’s quite a lot to like here on a PER <10, the only fly in the ointment is perhaps the Net Debt (30% of the Mkt Cap).

6-Apr-2018 – 820p – £329.3m – PER 8.75

Trading Update – Challenging but expecting FY to be In-line.

I still quite like this but there’s 2 stand-outs, a new acquisition integration in progress and Net Debt greater than 30% of Market Cap.  The strange one here is the EPS CAGR is circa 15% – That’s almost double the 8.75 PER, the PEG reflects this, it’s 0.57! I’m almost talking myself into investing here but just can’t justify it – I just get the feeling I am missing something the market is not.

5-Jun-2018 – 941p – £377.9m – PER 10.0

Final Results For The 12 Months To End March 2018 – Revenue up 22% to £303.6m (2017: £248.7m) with Statutory PBT flat at £30.8m (2017: £30.3m) and Statutory EPS of 61.72p (2017: 60.31p), the FY Dividend will be up 18%. Net Debt is £179.2m (2017: £98.9m) after funding.

Looking at the forecasts this looks like a slight miss profit and EPS wise. Anyway, with the recent acquisition integration still in progress and Net Debt almost 50% of the Market Cap, I will be staying Neutral for now.

2-Aug-2018 – 1132.5p – £454.7m – PER 11.6

AGM Statement – Positive start to the year, trading is in-line with the Board’s expectations.

Those willing to accept the “macro market uncertainties” mentioned in this statement may have some interest here. I am not that way inclined at the moment so remain Neutral.

27-Sep-2018 – 1095p – £439.7m – PER 11.1

Trading Update – In-line.

Still some attraction here but the Net Debt is enough to keep me Neutral at present.

8-Apr-2019 – 995p – £399.5m – PER 9.9

Trading Update – Expects FY to be well ahead of last year and in-line with current market expectations.

I had this to say last time and I reckon it’s still valid “Still some attraction here but the Net Debt is enough to keep me Neutral at present”.

4-Jun-2019 – 740p – £297m – PER 7.4

Results For The 12 Months To End March 2019 – Revenue up 28% (to £382.8m), PBT up 15% (to £46.8m), Basic EPS up 12% (to 95.1p), Total Dividend up 16% (to 30.2p), Net Debt down from £179.2m to £168.1m (after funding). This year is progressing in-line.

I keep saying this here “Still some attraction here but the Net Debt is enough to keep me Neutral at present”.

25-Jul-2019 – 819p – £330m – PER 8

AGM Statement – Trading has been broadly in-line and well positioned for further progress in the current financial year.

Looks overvalued (at best) here taking into account that Net Debt. Based on the latest Broker note this morning, in my opinion, this looks overvalued here on a 1 Year and 2 Year view especially taking into consideration the rather high Net Debt.

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