Trading Update

Vp plc

('Vp', or the 'Group')

Trading Update

Specialist offering delivering a resilient performance in line with expectations

Vp plc, the specialist equipment rental business, today announces a trading update for the financial year ended 31 March 2025 ("FY25" or "the year").

The Group has recorded a resilient performance in FY25 and expects to report a performance in line with market expectations* despite previously reported challenges in certain end markets.

This performance reflects the strengths of both Vp's specialist, solutions-based offering, as well as its exposure to a diverse range of end markets.

The Group is making good progress in refreshing and centralising its operating model, assisted by its digital roadmap. This is enabling Vp to simplify the way it operates, which will in turn drive efficiency and improve cross divisional working to enhance the customer experience.

Infrastructure continues to be Vp's largest end market. Conditions have generally been supportive, and the Group remains optimistic about future growth opportunities:

• Activity levels in Water have been strong and are expected to continue with the start of Ofwat's new Asset Management Period 8 (AMP8).

• Significant opportunities in Transmission exist in the UK and Germany, particularly in relation to the renewal and upgrade of grid infrastructure to support renewable energy sources.

• Activity levels in Network Rail's Control Period 7 (CP7) have been slower than anticipated. However, Vp remains optimistic about prospects within the rail sector and the launch of Vp Rail during FY25 positions the Group well to take full advantage of opportunities as they arise.

Within Construction, market dynamics have remained mixed:

• The Group continues to enjoy good market activity levels in Specialist Construction particularly in London and the Republic of Ireland, where prospects remain strong. Vp's recent acquisition, CPH in Ireland, is integrating into the Group well and trading is in line with expectations.

• Non-residential Construction activity levels remain subdued. Despite actions taken in Brandon Hire Station, improvements to the division's performance have been slower than anticipated. The Group continues to monitor the division's performance closely and continues to execute against the previously announced recovery plan.

In Vp's smaller end markets, Energy has been supportive with a good level of project activity. Housebuilding has been stable albeit at lower levels than expected, however, the Group remains encouraged by the UK Government's focus on this area.

The Group has continued to invest in its rental fleet in support of its strategy of building long term sustainable competitive advantage, capitalising on opportunities when they arise and driving attractive returns for the Group. Vp's balance sheet remains strong with a net debt/ EBITDA gearing ratio of c1.5x**. Net debt, which reflects growth capex and the acquisition of CPH in October 2024, is in line with market expectations.

Anna Bielby, Chief Executive of Vp, said: "I am pleased to report a strong performance that continues to demonstrate the resilience of our specialist businesses and end markets, reinforced by improvements made to the Group's operating model. While we have seen challenges in some of our markets alongside wider geo-political uncertainty, our clear strategy combined with our strong balance sheet and investment commitments by the UK Government, underpins our ability to continue generating long-term sustainable shareholder returns."

- ENDS -

*Vp compiled analyst consensus for revenue of £371m, Profit before tax, amortisation and impairment of goodwill, trade names and customer relationships and exceptional items of £37m and pre-IFRS 16 net debt of £141m.

**Gearing ratio calculated using management information and excluding the impact of IFRS16.

For further information:

Notes to Editors

Vp plc is a specialist equipment rental business providing equipment, people, services and support for specialist projects. It focuses on niche sectors principally in the Infrastructure Construction, Housebuilding and Energy markets in the UK and overseas. Businesses include: Groundforce, TPA, Torrent Trackside, Brandon Hire Station, MEP, ESS, UK Forks, Airpac Rentals, CPH and Tech Rentals.

Our approach to environmental and social impact is guided by our core values and responsible business framework, for more information go to: www.vpplc.com/esg-and-governance/.