6th Oct 2020 13:36
VP PLC - Harrogate-based equipment rental firm - Sees improvement in revenue since July but says the initial positive impact from the re-opening of existing sites has slowed and the business has become more reliant on new projects starting. Revenue now running at around 85% of pre-Covid levels. Says while it previously closed around 120 locations in response to the downturn in trading, 100 of the sites are now fully operational. Notes however that the re-alignment of capacity to better reflect current levels of demand has resulted in the merging or closure of 17 branches and the axing of 150 positions across its businesses in the UK and internationally. Costs of branch closures and redundancies to show as an exceptional charge in the year ending March 31. 2021. Longer-term outlook positive but VP expresses caution in regard to its short to medium term prospects.
Current stock price: 689.42 pence
Year-to-date change: down 27%
By Ife Taiwo; [email protected]
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