Vp (VP) H1 2026 earnings summary

Executive summary

• Delivered solid first-half financial results despite macroeconomic and UK market challenges, with revenue and profit down year-over-year but strong growth in Ireland and Germany.

• Strategic focus on specialist equipment rental and infrastructure, with major activity in construction, water, and rail sectors.

• Decisive restructuring of Brandon Hire Station to exit consumer markets, reduce branch network and headcount, and focus on B2B customers for improved profitability.

• Continued investment in digital transformation, operational excellence, rental fleet, and ESG initiatives.

• CEO transition process underway, with current CEO to depart by March 2026.

Financial highlights

• Revenue for HY26 was £188.4m, down £4m or 2% year-over-year; UK revenue declined by £10m to £152.5m, while international revenue grew by £6m to £35.9m.

• Adjusted profit before tax and exceptional items fell by £3.7m to £17.3m; adjusted EBITDA was £43.0m, down 9% year-over-year.

• Net margin decreased from 10.9% to 9.2%; adjusted basic EPS was 33.0p, down from 39.0p.

• Exceptional items totaled ~£22m, mainly from Brandon Hire Station restructuring, with a cash cost of ~£16m.

• Interim dividend maintained at 11.5p per share, continuing a 30+ year record.

Outlook and guidance

• Full-year performance expected to be in line with market expectations despite ongoing market uncertainty.

• Anticipates increased activity in infrastructure, especially water and rail, and continued growth in Ireland and Germany.

• ROI/ROACE expected to improve in H2 and into FY2027, driven by restructuring and targeted investments.

• Board remains confident in delivering consistent returns and long-term value.