Vp reports resilient Q1 performance amid mixed market conditions

Staff training at VP plc’s Groundforce shoring division. (Photo: VP)

UK rental group Vp plc said it delivered a resilient performance in the first quarter of its 2025 financial year, with trading in line with market expectations despite ongoing challenges in some sectors.

The group, which provides specialist equipment rental services to infrastructure, construction, and industrial markets, said its core infrastructure business remained a key area of strength.

In particular, the power transmission sector in Germany performed well, and the company remains optimistic about upcoming opportunities in the UK water sector under AMP8.

However, it said activity in the rail sector continues to be subdued, particularly with regard to Network Rail’s Control Period 7 (CP7).

In construction, market conditions remain mixed. Vp said specialist construction continues to perform well in both the UK and Ireland, while general construction markets remain more challenging.

Activity in London and the Republic of Ireland is described as solid, although the broader housebuilding sector is subdued.

The company’s general tool hire division, Brandon Hire Station, continues to face headwinds, with performance slower than anticipated.

Vp said it remains on track to complete its recovery plan for the division by the end of the financial year.

Jeremy Pilkington, chairman of Vp, said at its AGM earlier today, “Overall, the Group’s performance for the first quarter of the financial year has been resilient despite mixed market conditions and the Board continues to expect performance for the year to be in line with market expectations.”

He said the company welcomes the UK Government’s focus on growth, including both its 10 Year Industrial and Infrastructure strategies and hope that this provides much needed positive momentum in the market.

“We are making good progress on our strategy supported by our digital roadmap. This includes simplifying the way the Group operates, enhancing the customer experience and pursuing a Vp Group go to market strategy,” he concluded.