26th Nov 2013 09:02
LONDON (Alliance News) - VP PLC Tuesday said its pretax profit rose 17% in its first half as sales were positive across the company's operations.
The oilfield services and equipment rental company said its pretax profit increased to GBP12.3 million for the six months ended September 30 from GBP10.5 million the previous year.
Revenue rose 8.7% to GBP91.3 million from GBP84.0 million as the company's groundforce division increased revenues 14%, its UK forks division increased them 20%, and its hire station operations by 9%. Sales at the company's other divisions remained largely flat.
VP managing to keep its costs and expenses from significantly offsetting its sales growth meaning the company's operating profit for the six month period was up 11% to GBP13.2 million from GBP11.9 million the previous year.
The company also said capital investment in its rental fleet increased 46% compared to the previous year, at GBP18.3 million overall, and the company is continuing development following the acquisition of Mr Cropper, a cropping rental company, in September. Croppers break down the concrete piles used in building foundations to the height needed for construction.
VP lifted its interim dividend 11% to 3.6 pence per share from 3.25 pence the previous year, which will be payable to shareholders on January 3, 2014.
The company said it is well placed to continue positive progress for the full year and beyond.
VP shares were up 5.3% to 530.50 pence in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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