27th Nov 2018 11:22
LONDON (Alliance News) - Vp PLC on Tuesday raised its interim dividend by 21% on the back of a sharp rise in revenue and earnings, driven by solid performance by both UK and international businesses and contribution from Brandon Hire acquisition.
The equipment rental company recorded pretax profit of GBP23.9 million for the six months to September 30, up 18% from GBP20.3 million in the year ago period, on a revenue of GBP193.2 million and GBP135.9 million, respectively.
First half earnings before interest, taxes, depreciation and amortisation increased by 26% to GBP51.6 million from GBP41.1 million.
The company's UK unit recorded first half adjusted operating profit of GBP26.9 million, up from GBP22.2 million, on revenues of GBP175.3 million and GBP120.3 million, respectively. Brandon Hire, which was bought by Vp in November 2017, contributed GBP39.4 million to UK revenue.
Operating profits, before amortisation, at international division increased to GBP1.3 million from GBP300,000, on 14% higher revenue of GBP17.9 million.
"Both our UK and international divisions have performed strongly with most of our business units busy supporting stable end markets. In the UK division, whilst Brexit continues to be a distraction, day to day activity seems to be continuing largely unaffected," said Chairman Jeremy Pilkington.
"With the benefit of a strong first half, which includes an in line contribution from Brandon Hire, we look forward to the remainder of the year, and beyond, with every confidence," Pilkington added.
Vp has declared a interim dividend of 8.2 pence per share versus 6.8p paid a year ago. Shares in the company were trading 5.9% higher at 1,027.60p each on Tuesday morning.
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