Vp plc, the specialist equipment rental business, issuesd a trading update for the financial year ended 31 March 2026 (“FY26”).

In a challenging macroeconomic environment, Vp expects to report FY26 profits between £26-29m, in line with previous revised guidance. The business has maintained operational and financial discipline and continues to progress its strategic priorities.

Strong long-term opportunity remains despite a challenging near-term market
Despite tough market conditions, the Group continues to see long-term drivers of demand across its core sectors.

Within the Infrastructure sector, Electricity transmission continues to see growth and strong demand in both the UK and Europe. Rail activity is steady but subdued, with good visibility on future project pipelines. There are positive lead indicators in Water as we enter Year 2 of AMP8, supporting our confidence in an improvement in revenues for FY27. Within the Construction sector, the Specialist Construction market remains supportive, particularly in London and the Republic of Ireland. Housebuilding remains subdued, but with stronger prospects as Homes England’s Social and Affordable Homes Programme (SAHP) 2026-2036 commences.

The immediate impact of the Middle East conflict has been limited to higher fuel costs, which has been largely mitigated through customer pricing.

Strategic and operational progress

Since her appointment, Chief Executive Alice Woodwark has focused on enhancing operational discipline and accelerating strategic execution, including:

Enhancing cross-divisional efficiency with more multi-division projects representing an increasing share of revenue
A sharper focus on specialist infrastructure-led markets
Advancing Vp’s digital roadmap, delivering enhancements to pricing, customer service and cross-divisional working

The exceptional transformation programme to reposition Brandon Hire Station is materially completed with branch numbers and headcount reduced as planned, delivering efficiency and utilisation benefits in line with expectations.

Outlook

While market conditions remain mixed, Vp’s diversified model, financial strength and infrastructure exposure provide a solid foundation, and the Board remains confident in the Group’s positioning and future performance.

The Group’s balance sheet remains strong, supporting continued disciplined investment and value creation, with leverage remaining within stated targets.

Alice Woodwark, Chief Executive of Vp, said: “Vp has continued to deliver a disciplined performance and good strategic progress. Our focus on infrastructure-led markets, operational efficiency and digital delivery positions us well to navigate the near-term environment and build long term sustainable value for stakeholders.”