03/03/2008
Equipment rental specialist Vp, featured in Company Profile and recommended as a strong buy at 380p last year, goes from strength to strength, although the shares have slipped to 316p, in line with the derating of small-cap companies.
In its latest trading missive, Vp said that since announcing strong interim results in November (with pre-tax profits increased by 55 per cent to £12.1 million) performance has ‘remained positive’ across the wide range of sectors that the company serves, with Vp seeing ‘no discernible’ impact from the problems in the wider financial markets. Recent acquisitions – USS, PTA and Able Safety – have been integrated well and, with the company seeing good demand for its products and services, it should hit its numbers for the year to March 2008.
Broker Brewin Dolphin expects significantly increased profits of £19 million (2007: £14.2 million) and earnings of 30.4p (2007: 22.8p), placing the shares on a forward p/e ratio of 10.4 times, with a 3.1 per cent yield, based on a forecast dividend of 10p.
On that basis, we remain Vp enthusiasts, given the resilient mix of businesses it boasts across a slew of sectors (water, rail, construction, oil and gas), as well as management’s formidable recent record of creating shareholder value. Take the opportunity to pick up some shares while they’re trading at bargain levels.
| LSE | £60.5m |
131.00p
|
-1.00p
|
|
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