A £33,125 purchase of shares in VP (VP.) by group managing director Neil Stothard is a vote of confidence in the equipment rental group given that he is buying close to an all-time share price high. Strengthening the bull case is group finance director Allison Bainbridge also buying shares, investing £23,180 on 16 July.
Full-year results (5 Jun) were better than expected thanks to a strong performance from the firm’s water, rail and transmission sectors. The company reckons the UK construction and global oil and gas markets will be the key drivers for the new financial year, the former only requiring a small tick-up in demand to enhance profits thanks to the business segment’s high operational gearing.
VP says (22 Jul) the first quarter of its new financial year has gone well. It delivered ‘good growth’ in all market sectors, continuing the positive business momentum enjoyed in the previous quarter. House broker N+1 Singer upgrades its pre-tax profit forecast for the financial year to March 2015 by 7% to £22.6 million. It comments: ‘VP is a high quality business, generating consistently strong returns and cash flows, serving markets with attractive growth dynamics. We believe VP is well positioned to continue to deliver shareholder value over the medium term.’
