Vp (VP) Investor Update summary

Strategic and operational highlights

• Launched VP Rail to unify rail sector offerings, providing a single point of contact and leveraging group-wide expertise for major projects and maintenance across the UK, streamlining customer access and processes.

• Refreshed strategy focuses on divisional collaboration, operational excellence, and digital integration to drive growth and efficiency.

• Appointed new leadership in IT, health, safety, sustainability, and procurement to support transformation.

• Completed acquisition of CPH in Ireland, expanding specialist access services and entering a high-growth market.

• Ongoing review of business structure to optimize customer support and cost efficiency, with centralization of key functions.

Financial performance and capital allocation

• Revenue and profit for H1 were robust and broadly in line with the previous year, with strong ROCE at 14.7%.

• Maintained a strong balance sheet, increased fleet CapEx to £38.5m, and declared an interim dividend of 11.5p per share.

• Net debt increased by £15m, reflecting disciplined investment and seasonal working capital outflows.

• Over 50% of H1 fleet purchases were zero emissions at point of use, supporting ESG goals.

• Capital allocation prioritizes organic growth, selective M&A, and sustained dividend payments.

Market and segment updates

• Infrastructure, especially water and transmission, showed strong growth; rail performance was impacted by the CP6 to CP7 transition but outlook remains positive.

• Construction and house building remain challenging, with Brandon Hire Station focusing on core customers and operational improvements.

• Specialist construction and energy segments delivered growth, supported by major projects and favorable market conditions.

• House building expected to recover in the next financial year as planning reforms take effect.