Interim Results
(Thomson Reuters ONE) - Press Release 27 November 2009 Vp plc ("Vp" or the "Group") Interim ResultsVp plc, the equipment rental specialist, today announces its InterimResults for the six months ended 30 September 2009.Highlights* Revenues of £71.1 million (H1 2008 restated: £85.1 million)* Profit before tax, amortisation and exceptional items of £10.0 million (H1 2008: £13.9 million)* Reduction in net capital investment to £2.4 million (H1 2008: £13.2 million)* Net debt reduced by £11 million to £55 million representing financial gearing of 53%* Interim dividend maintained at 3.1 pence per share* All divisions within the Group were cash positiveJeremy Pilkington, Chairman of Vp plc, commented:"We are pleased to report very satisfactory results in such achallenging business environment. Whilst we do see some furtherdownward pressure and uncertainty in specific markets, we believethat the diversity of the Group's activities and our financialstrength will enable us to emerge from this downturn in a strongposition. We are confident in the Group's ability to capitalise oncurrent and future opportunities. " - Ends -For further information please contact:Vp plcJeremy Pilkington, Chairman Tel: +44 (0) 1423 533 405jeremypilkington(at)vpplc.comNeil Stothard, Group Managing Director Tel: +44 (0) 1423 533 445neil.stothard(at)vpplc.comMike Holt, Group Finance Director Tel: +44 (0) 1423 533 445mike.holt(at)vpplc.com www.vpplc.comMedia enquiries:Abchurch CommunicationsGeorge Parker / Mark Dixon Tel: +44 (0) 20 7398 7729george.parker(at)abchurch-group.com www.abchurch-group.comCHAIRMAN'S STATEMENTLast year, despite the global financial crisis and onset of recessionin the UK, the Group reported an eighth successive year of profitgrowth. However, as anticipated, the difficult trading conditionsthat were emerging in the second half of the last financial year havebecome more pronounced in the current year. Nevertheless, I am verypleased to report that for the six months ended 30 September 2009,the Group delivered impressive profits before tax, amortisation andexceptional items of £10.0 million (2008: £13.9 million),underscoring the resilience of our business model.Whilst we remain focused on taking advantage of every revenuegenerating opportunity, our primary emphasis this year has been oncash conservation and cost reduction to mitigate the impact onprofitability of declining revenues. Revenues reduced to £71.1million (2008: £85.1 million), but cost and fleet management measureshave partially protected the bottom line and helped to deliverquality earnings.The Group's mixture of niche markets with exposure to regulated andoutsourcing activity has continued to provide some mitigation againstthe worst effects of the recession though trading pressures are beingfelt in all of our businesses. We have continued to invest in rentalfleet where opportunities have been secured and the returns areattractive, but the overall slowing of demand and the longevity ofmany of our product lines has enabled us to reduce net capitalinvestment to £2.4 million compared with £13.2 million in the sameperiod last year. No acquisitions were made in the period and allthe divisions in the Group were cash positive. These measures,combined with rigorous working capital management, have generatedstrong operational cash flow. Net debt has reduced by £11 million to£55 million representing financial gearing of 53%.The cost actions taken in the period have created a small redundancycost of £0.3 million, but crucially, effective asset management hasmeant it has not been necessary for the Group to make exceptionalwrite downs to hire fleet. In addition, the strength of the balancesheet, which has improved further even in these exceptionallychallenging times, has allowed the Group to generate all its fundingrequirements organically without having to contemplate equity supportfrom shareholders.Given these very satisfactory results achieved in such a challengingbusiness environment and taking into account the strong financialposition of the Group, your Board is declaring a maintained interimdividend of 3.1 pence per share payable on 6 January 2010, toshareholders registered at 11 December 2009.GroundforceGroundforce reported good profits despite experiencing a decline inrevenues for the first time in many years. Early cost managementresponses protected profits to a significant extent. The AMP4utility infrastructure investment programme is now drawing to a closeand although AMP5 is scheduled to start in early 2010, it is prudentto anticipate the customary hiatus between the two programmes. Inthe meantime, Groundforce is deriving useful work from the OlympicGames sites and other major infrastructure projects. Export saleshave performed well.UK ForksUK Forks hire revenues fell by 44% compared with the same period lastyear. The business has continued to reduce its cost base and fleetsize to better match current levels of activity but given the scaleof loss of revenues, it was unable to avoid incurring a small tradingloss. The residential construction market appears to have stabilisednow, albeit at a very low level. Revenues, as elsewhere within theGroup, are currently strongly dependent on PFI and public sectorsupported investment activities. Private sector development remainsquiet.Airpac BukomAirpac Bukom advanced both revenues and profits within the perioddespite the volatility in the oil price which led to deferment ofsome well test and maintenance projects. Airpac Bukom has continuedto bid successfully for contracts around the world and has recentlysecured the contract for the supply of compression equipment to themajor Pluto Liquified Natural Gas (LNG) contract in Australia. Therecent recovery in the oil price has created a more positivebackground for the oil and gas exploration sector, which shouldcontinue to be a supportive market over the medium to long-term.Torrent TracksideTorrent Trackside, in line with many suppliers to the rail market,had a disappointing first half as a result of the slow release oftrack renewal contracts. Torrent has excellent relationships withthe specialist rail contractors and remains well positioned withinits market. We look forward to improving work flows in the nearfuture and believe rail remains an attractive sector for the Group.TPATPA delivered a very satisfactory profit result despite the defermentof some National Grid infrastructure work. Improved operational costmanagement helped to protect margins and we anticipate strongerdemand from the Grid going forward. TPA Germany delivered anothersolid performance and prospects look positive for the second half.Seasonality remains a significant feature of this business althoughoperational efficiencies should help to defend the profits earned inthe first half.Hire StationHire Station experienced a difficult first half's tradingparticularly within its mainstream tool business where pressure onrevenues and prices were greatest. Despite this background thebusiness has continued to secure new customers on a long-term basis.The specialist safety equipment and press fitting tool activitieshave traded more strongly. Significant cost savings have been madein Hire Station, and even in this very difficult market it has beenable to deliver a level of profits which demonstrates theresponsiveness and quality of the business model.OutlookThe specialist markets we serve were affected by recession later thanmainstream construction but inevitably they are now experiencing bothvolume and pricing pressure.Currently our markets are relatively stable, albeit at much reducedlevels of activity. Whilst we do see some further downward pressureand uncertainty in specific markets, we believe that the diversity ofthe Group's activities and our financial strength will enable us tocontinue to deliver satisfactory results and to emerge from thisdownturn in a strong position.The quality of the results delivered in the first half illustrateswhy we are confident in the Group's ability to deal with marketchallenges, and, more positively, to capitalise on opportunities bothnow and in the future.Jeremy PilkingtonChairman27 November 2009Condensed Consolidated Income StatementFor the period ended 30 September 2009 Note Six months to Six months to Full year 30 Sep 2009 30 Sep 2008 to 31 Mar 2009 Restated Restated (unaudited) (unaudited) (audited) £000 £000 £000Revenue 3 71,113 85,133 157,470Cost of sales (51,195) (58,637) (114,331)Gross profit 19,918 26,496 43,139Administrative (9,761) (11,019) (18,617)expensesOperating profit 3 10,157 15,477 24,522Net financial (1,339) (1,950) (3,687)expensesProfit beforeamortisation, 9,957 13,944 21,744exceptional itemsand taxationAmortisation of (975) (417) (909)intangiblesExceptional items 4 (164) - -Profit before 8,818 13,527 20,835taxationIncome tax expense 5 (2,475) (3,653) (5,701)Net profit for the 6,343 9,874 15,134periodBasic earnings share 7 15.42p 23.55p 36.41pDiluted earnings 7 15.11p 22.64p 35.30pshareDividend per share 8 3.10p 3.10 p 10.80pDividends paid and 1,299 1,290 4,505proposed (£000)Condensed Consolidated Statement of Comprehensive IncomeFor the period ended 30 September 2009+-------------------------------------------------------------------+| | Six months | | | | || | to | | Six months | | Full year || | | | to | | to ||-------------------+-------------+---+-------------+---+-----------|| | 30 Sep 2009 | | 30 Sep 2008 | | 31 Mar || | | | | | 2009 ||-------------------+-------------+---+-------------+---+-----------|| | (unaudited) | | (unaudited) | | (audited) ||-------------------+-------------+---+-------------+---+-----------|| | £000 | | £000 | | £000 || | | | | | ||-------------------+-------------+---+-------------+---+-----------|| Profit for the | 6,343 | | 9,874 | | 15,134 || period | | | | | ||-------------------+-------------+---+-------------+---+-----------|| Other | | | | | || comprehensive | | | | | || income: | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Actuarial losses | | | | | || on defined | - | | - | | (1,882) || benefit pension | | | | | || scheme | | | | | || | | | | | ||-------------------+-------------+---+-------------+---+-----------|| Tax on items | - | | - | | 527 || taken direct to | | | | | || equity | | | | | || | | | | | ||-------------------+-------------+---+-------------+---+-----------|| Effective portion | | | | | || of changes in | 997 | | (239) | | (3,154) || fair value of | | | | | || cash flow hedges | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Foreign exchange | (26) | | 17 | | 274 || translation | | | | | || difference | | | | | || | | | | | ||-------------------+-------------+---+-------------+---+-----------|| Other | 971 | | (222) | | (4,235) || comprehensive | | | | | || income | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Total | 7,314 | | 9,652 | | 10,899 || comprehensive | | | | | || income for the | | | | | || period | | | | | |+-------------------------------------------------------------------+Condensed Consolidated Statement of Changes in EquityFor the period ended 30 September 2009+-------------------------------------------------------------------+| | Six months | | Six months | | Full year || | to | | to | | to ||-------------------+-------------+---+-------------+---+-----------|| | 30 Sep 2009 | | 30 Sep 2008 | | 31 Mar || | | | | | 2009 ||-------------------+-------------+---+-------------+---+-----------|| | (unaudited) | | (unaudited) | | (audited) ||-------------------+-------------+---+-------------+---+-----------|| | £000 | | £000 | | £000 ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Total | 7,314 | | 9,652 | | 10,899 || comprehensive | | | | | || income for the | | | | | || period | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Tax movements to | - | | (287) | | (285) || equity | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Share option | 273 | | 638 | | 442 || charge in the | | | | | || period | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Net movement | | | | | || relating to | | | | | || Treasury Shares | 3 | | (1,928) | | (3,166) || and shares held | | | | | || by Vp Employee | | | | | || Trust | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Dividends to | (3,212) | | (3,214) | | (4,505) || shareholders | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Change in equity | 4,378 | | 4,861 | | 3,385 || during the period | | | | | ||-------------------+-------------+---+-------------+---+-----------|| | | | | | || Equity at the | 77,152 | | 73,767 | | 73,767 || start of the | | | | | || period | | | | | ||-------------------+-------------+---+-------------+---+-----------|| Equity at the end | 81,530 | | 78,628 | | 77,152 || of the period | | | | | |+-------------------------------------------------------------------+Included in the above changes is a credit to reserves of £997,000(September 2008: £239,000 charge, March 2009: £3,154,000 charge) inthe Hedging Reserve. There were no changes in Issued Share Capitalor Share Premium.Condensed Consolidated Balance SheetAt 30 September 2009+---------------------------------------------------------------------+| |Note|30 Sep 2009| | | | || | | | |31 Mar 2009| |30 Sep 2008||------------------------+----+-----------+-+-----------+-+-----------|| | | | | Restated| | Restated|| | |(unaudited)| | (audited)| |(unaudited)||------------------------+----+-----------+-+-----------+-+-----------|| | | £000| | £000| | £000||------------------------+----+-----------+-+-----------+-+-----------||Non-current assets | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Property, plant and| 6 | 102,730| | 107,889| | 108,529||equipment | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Goodwill | | 33,797| | 33,889| | 37,530||------------------------+----+-----------+-+-----------+-+-----------||Intangible assets | | 6,376| | 7,351| | 7,568||------------------------+----+-----------+-+-----------+-+-----------||Total non-current assets| | 142,903| | 149,129| | 153,627||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Current assets | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Inventories | | 4,007| | 5,463| | 5,251||------------------------+----+-----------+-+-----------+-+-----------||Trade and other| | 29,520| | 32,814| | 37,979||receivables | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Cash and cash| | 712| | 551| | 2,204||equivalents | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Total current assets | | 34,239| | 38,828| | 45,434||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Total assets | | 177,142| | 187,957| | 199,061||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Current liabilities | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Interest bearing loans| | (448)| | (681)| | (1,013)||and borrowings | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Income tax payable | | (2,502)| | (2,291)| | (4,086)||------------------------+----+-----------+-+-----------+-+-----------||Trade and other payables| | (27,493)| | (30,472)| | (39,425)||------------------------+----+-----------+-+-----------+-+-----------||Total current| | (30,443)| | (33,444)| | (44,524)||liabilities | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Non-current liabilities | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Interest bearing loans| | (55,042)| | (65,707)| | (65,902)||and borrowings | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Employee benefits | | (1,814)| | (3,194)| | (1,321)||------------------------+----+-----------+-+-----------+-+-----------||Deferred tax liabilities| | (8,286)| | (8,433)| | (8,659)||------------------------+----+-----------+-+-----------+-+-----------||Total non-current| | (65,142)| | (77,334)| | (75,882)||liabilities | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Total liabilities | | (95,585)| | (110,778)| | (120,406)||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Net assets | | 81,557| | 77,179| | 78,655||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Equity | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||Issued capital | | 2,309| | 2,309| | 2,309||------------------------+----+-----------+-+-----------+-+-----------||Share premium | | 16,192| | 16,192| | 16,192||------------------------+----+-----------+-+-----------+-+-----------||Hedging reserve | | (2,609)| | (3,606)| | (691)||------------------------+----+-----------+-+-----------+-+-----------||Retained earnings | | 65,638| | 62,257| | 60,818||------------------------+----+-----------+-+-----------+-+-----------||Total equity| | 81,530| | 77,152| | 78,628||attributable to equity | | | | | | ||holders of parent | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------|| | | | | | | ||------------------------+----+-----------+-+-----------+-+-----------||Minority interest | | 27| | 27| | 27||------------------------+----+-----------+-+-----------+-+-----------||Total equity | | 81,557| | 77,179| | 78,655|+---------------------------------------------------------------------+Condensed Consolidated Statement of Cash FlowsFor the period ended 30 September 2009 Note Six months Six months Full year to to to 30 Sep 2009 30 Sep 2008 31 Mar 2009 (unaudited) (unaudited) (audited) £000 £000 £000Cash flows from operatingactivities 8,818 13,527 20,835Profit before taxationAdjustment for:Pension fund contributionsin excess of service cost (2,253) (113) (204)Share based payment 273 638 442chargesDepreciation 6 9,536 9,268 18,964Amortisation of 975 417 909intangiblesNet financial expense 1,339 1,950 3,687Profit on sale of (2,021) (2,190) (3,825)property, plant andequipmentOperating cash flow before 16,667 23,497 40,808changes in working capitaland provisionsDecrease/(increase) in 1,456 (361) (348)inventoriesDecrease/(increase) intrade and other 3,294 (4,676) 741receivablesDecrease in trade and (1,808) (3,505) (6,073)other payablesCash generated from 19,609 14,955 35,128operationsInterest paid (1,260) (2,017) (3,711)Interest element of (84) (103) (199)finance lease rentalpaymentsInterest received 11 29 28Income tax paid (2,411) (2,231) (5,991)Net cash from operating 15,865 10,633 25,255activitiesInvesting activitiesProceeds from sale of 5,201 5,959 10,799property, plant andequipmentPurchase of property, (10,034) (20,405) (34,211)plant and equipmentAcquisition of businesses 17 (4,985) (6,013)and subsidiaries (net ofcash and overdrafts)Net cash from investing (4,816) (19,431) (29,425)activitiesCash flows from financingactivitiesSale/(purchase) of 3 (1,928) (3,166)Treasury Shares and ownshares by Employee TrustRepayment of loans (14,500) (15,543) (20,401)New loans 4,000 24,500 29,000Payment of hire purchase (398) (1,031) (1,216)and finance leaseliabilitiesDividends paid 8 - - (4,505)Net cash from financing (10,895) 5,998 (288)activitiesNet increase/(decrease) in 154 (2,800) (4,458)cash and cash equivalentsEffect of exchange rate 7 17 22fluctuations on cash heldCash and cash equivalents 551 4,987 4,987at beginning of periodCash and cash equivalents 712 2,204 551at end of periodNotes to the Condensed Financial Statements1. Basis of PreparationVp plc (the "Company") is a company domiciled in the United Kingdom.The Condensed Consolidated Interim Financial Statements of theCompany for the half year ended 30 September 2009 comprise theCompany and its subsidiaries (together referred to as the "Group").This interim announcement has been prepared in accordance with theDisclosure and Transparency Rules of the UK Financial ServicesAuthority and the requirements of IAS34 ("Interim FinancialReporting") as adopted by the EU. The accounting policies appliedare consistent for all periods presented and are in line with thoseapplied in the annual financial statements for the year ended 31March 2009, which were prepared in accordance with InternationalFinancial Reporting Standards ("IFRS") as adopted by the EU, exceptas described below.The following new standards and amendments to standards have becomeeffective from 1 January 2009:* IAS 1 (revised), "Presentation of Financial Statements". The most significant change within IAS 1 (revised) is the requirement to produce a statement of comprehensive income setting out all items of income and expense relating to non-owner changes in equity. There is a choice between presenting comprehensive income in one statement or in two statements comprising an income statement and a separate statement of comprehensive income. The Group has elected to present an income statement and a separate statement of comprehensive income. In addition, IAS1 (revised) requires the statement of changes in shareholders' equity to be presented as a primary statement.* Amendments to IFRS 2, "Share Based Payments", clarifies the treatment of cancelled options, whereby if a grant of equity instruments is cancelled the Group shall account for the cancellation as an acceleration of vesting and shall recognise immediately the amount that would have been recognised over the remainder of the vesting period. The effect of this for the six months period to 30 September 2009 was not material.* IFRS 8, "Operating Segments" replaces IAS 14, "Segment reporting" and requires the disclosure of segment information on the same basis as the management information provided to the chief operating decision maker. The adoption of this standard has not resulted in a change in the Group's reportable segments.* An amendment to IAS 16, "Property, Plant and Equipment", classifies proceeds from the sale of ex rental assets as revenue. As a result revenue and cost of sales recognised in the consolidated statement of income have increased by £3,264,000 for the six months to 30 September 2009, £3,529,000 for the six months ended 30 September 2008 and £6,525,000 for the year ended 31 March 2009.The interim announcement was approved by the Board of Directors on 26November 2009.The Condensed Consolidated Interim Financial Statements do notinclude all the information required for full annual FinancialStatements.Subject to the restatement for hindsight adjustments referred tobelow and the amendments to the standards mentioned above, thecomparative figures for the financial year ended 31 March 2009 areextracted from the Company's statutory accounts for that financialyear. Those accounts have been reported on by the Company's auditorsand delivered to the Registrar of Companies. The report of theauditors was (i) unqualified, (ii) did not include a reference to anymatters to which the auditors drew attention by way of emphasiswithout qualifying their report, and (iii) did not contain astatement under section 237(2) or (3) of the Companies Act 1985.The preparation of financial statements in conformity with IFRSrequires management to make judgements, estimates and assumptionsthat affect the application of policies and reported amounts ofassets and liabilities, income and expenses. The estimates andassociated assumptions are based on historical experience and variousother factors that are believed to be reasonable under thecircumstances; these form the basis of the judgements relating tocarrying values of assets and liabilities that are not readilyapparent from other sources. Actual results may differ from theseestimates.The estimates and underlying assumptions are reviewed on an ongoingbasis. Revisions to accounting estimates are recognised in theperiod in which the estimate is revised if the revision affects onlythat period, or in the period of the revision and future periods ifthe revision affects both current and future periods.The Balance Sheet at 31 March 2009 and 30 September 2008 has beenrestated to reflect minor hindsight adjustments on acquisitions madein that year.2. Risks and UncertaintiesThe risks and uncertainties for the Group have not changed from thosedisclosed in the last statutory accounts. In particular the Groupcomprises six businesses serving different markets and manages therisks inherent to these activities. The key external risks includegeneral economic conditions, competitor actions, the effect oflegislation, credit risk and business continuity. Internal risksrelate mainly to investment and controls failure risk. The Groupseeks to mitigate exposure to all forms of risk where practicable andto transfer risk to insurers where cost effective. The diversifiednature of the Group limits the exposure to external risks withinparticular markets. Exposure to credit risk in relation tocustomers, banks and insurers is managed through credit controlpractices including credit insurance which limits the Group'sexposure to bad debts via an aggregate first loss policy which coversa significant proportion of the Group's accounts receivable.Business continuity plans exist for key operations and accountingcentres. The Group is an active acquirer and acquisitions mayinvolve risks that might materially affect the Group performance.These risks are mitigated by extensive due diligence and appropriatewarranties and indemnities from the vendors.The net debt position of the Group and current loan facilities areset out in Note 9. The Company will open renewal negotiations withthe banks before year end relating to the £50 million facility thatexpires in November 2010. However, the Company meets with itsexisting bankers, and other banks, on a regular basis in the ordinarycourse of business and has discussed its future borrowing needs andno matters have been drawn to its attention to suggest that renewalmay not be forthcoming on acceptable terms.Taking into account these risk mitigation actions and the treasurymanagement policies described in the 31 March 2009 accounts, theGroup's exposure to market, liquidity and credit risk is consideredby the Board to be within normal parameters and represents anacceptable level of risk.3. Summarised Segmental Analysis+-------------------------------------------------------------------+| | Revenue | | Operating Profit ||----------------+------------------------+---+---------------------|| | Sept | | Sept 2008 | | 2009 | 2008 | || | 2009 | | | | | | ||----------------+--------+---+-----------+---+--------+--------+---|| | | | Restated | | | | ||----------------+--------+---+-----------+---+--------+--------+---|| | £000 | | £000 | | £000 | £000 | ||----------------+--------+---+-----------+---+--------+--------+---|| Groundforce | 17,217 | | 21,182 | | 5,092 | 5,587 | ||----------------+--------+---+-----------+---+--------+--------+---|| UK Forks | 5,685 | | 10,073 | | (297) | 1,535 | ||----------------+--------+---+-----------+---+--------+--------+---|| Airpac Bukom | 8,157 | | 7,442 | | 2,028 | 1,538 | ||----------------+--------+---+-----------+---+--------+--------+---|| Torrent | 5,129 | | 6,595 | | 6 | 506 | || Trackside | | | | | | | ||----------------+--------+---+-----------+---+--------+--------+---|| TPA | 9,345 | | 10,930 | | 2,434 | 2,504 | ||----------------+--------+---+-----------+---+--------+--------+---|| Hire Station | 25,580 | | 28,911 | | 2,033 | 4,224 | ||----------------+--------+---+-----------+---+--------+--------+---|| | 71,113 | | 85,133 | | 11,296 | 15,894 | ||----------------+--------+---+-----------+---+--------+--------+---|| Amortisation | | | | | (975) | (417) | ||----------------+--------+---+-----------+---+--------+--------+---|| Exceptional | | | | | (164) | - | || items | | | | | | | ||----------------+--------+---+-----------+---+--------+--------+---|| | | | | | 10,157 | 15,477 | |+-------------------------------------------------------------------+4. Exceptional ItemsDuring the period the Group made a profit of £113,000 from thedisposal of a freehold property and incurred £277,000 of employmenttermination costs.5. Income TaxThe effective tax rate of 28.1% in the period to 30 September 2009(30 September 2008: 27.0%) reflects the standard rate of tax of 28%as adjusted for estimated permanent differences for tax purposes andadjustments to prior year provisions.6. Property, Plant and Equipment Sept 2009 Sept 2008 Mar 2009 £000 £000 £000Carrying amount 1 April 107,889 100,868 100,868Additions 7,590 19,170 31,027Acquisitions - 1,528 1,680Depreciation (9,536) (9,268) (18,964)Disposals (3,180) (3,772) (6,974)Effect of movements in exchange rates (33) 3 252Closing carrying amount 102,730 108,529 107,889The value of capital commitments at 30 September 2009 was £1,516,000(31 March 2009: £3,213,000).7. Earnings Per ShareEarnings per share have been calculated on 41,123,633 shares (2008:41,922,500) being the weighted average number of shares in issueduring the period. Diluted earnings per share have been calculatedon 41,977,858 shares (2008: 43,618,604) adjusted to reflectconversion of all potentially dilutive ordinary shares. Basicearnings per share before the amortisation of intangibles andexceptional items was 17.42 pence (2008: 24.27 pence) and was basedon an after tax add back of £820,000 (2008: £300,000). Dilutedearnings per share before amortisation of intangibles and exceptionalitems was 17.06 pence (2008: 23.33 pence).8. DividendsThe Directors have declared an interim dividend of 3.10 pence (2008:3.10 pence) per share payable on 6 January 2010 to shareholders onthe register at 11 December 2009. The dividend proposed at the yearend was subsequently approved at the AGM in September and thereforeaccrued, but was not paid in the period (2008 paid: nil). The costof dividends in the Statement of Changes in Equity is afteradjustments for the interim and final dividends waived by the VpEmployee Trust in relation to the shares it holds for the Group'sshare option schemes together with dividends waived in relation totreasury shares.9. Analysis of Net Debt As at Cash As at 1 Apr 09 Flow 30 Sep 09 £000 £000 £000Cash in hand and at bank less 551 161 712overdraftsRevolving credit facilities (65,500) 10,500 (55,000)Finance leases and hire purchases (888) 398 (490) (65,837) 11,059 (54,778)The Group's bank facilities comprise a £50m committed five yearrevolving credit facility which expires in November 2010, a £20mcommitted three year revolving credit facility expiring in September2011 and overdraft facilities totalling £10m.10. Related Party TransactionsTransactions between Group Companies, which are related parties, havebeen eliminated on consolidation and therefore do not requiredisclosure.11. Forward Looking StatementsThe Chairman's Statement includes statements that are forward lookingin nature. Forward looking statements involve known and unknownrisks, assumptions, uncertainties and other factors which may causethe actual results, performance or achievements of the Group to bematerially different from any future results, performance orachievements expressed or implied by such forward lookingstatements. Except as required by the Listing Rules and applicablelaw, the Company undertakes no obligation to update, review or changeany forward looking statements to reflect events or developmentsoccurring after the date of this report.Responsibility statement of the directors in respect of thehalf-yearly financial reportWe confirm that to the best of our knowledge:* the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU* the interim management report includes a fair review of the information required by:(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being anindication of important events that have occurred during the firstsix months of the financial year and their impact on the condensedset of financial statements; and a description of the principal risksand uncertainties for the remaining six months of the year; and(b) DTR 4.2.8R of the Disclosure and Transparency Rules, beingrelated party transactions that have taken place in the first sixmonths of the current financial year and that have materiallyaffected the financial position or performance of the entity duringthat period; and any changes in the related party transactionsdescribed in the last annual report that could do so.By order of the Board27 November 2009The BoardThe Board of Directors who served during the 6 months to 30 September2009 is unchanged from that set out on page 14 of the Annual Reportand Financial Statements 2009, with the exception that BarrieCottingham retired as a Director at the Annual General Meeting on 8September 2009.Independent Review Report to Vp plcIntroductionWe have been engaged by the Company to review the condensed set offinancial statements in the half-yearly financial report for the sixmonths ended 30 September 2009 which comprises the condensedconsolidated interim income statement, the condensed consolidatedinterim statement of comprehensive income, the condensed consolidatedinterim balance sheet, the condensed consolidated interim statementof changes in shareholders' equity, the condensed consolidatedinterim cash flow statement and the related explanatory notes. Wehave read the other information contained in the half-yearlyfinancial report and considered whether it contains any apparentmisstatements or material inconsistencies with the information in thecondensed set of financial statements.This report is made solely to the Company in accordance with theterms of our engagement to assist the Company in meeting therequirements of the Disclosure and Transparency Rules ("the DTR") ofthe UK's Financial Services Authority ("the UK FSA"). Our review hasbeen undertaken so that we might state to the Company those matterswe are required to state to it in this report and for no otherpurpose. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the company for our reviewwork, for this report, or for the conclusions we have reached.Directors' responsibilitiesThe half-yearly financial report is the responsibility of, and hasbeen approved by, the Directors. The Directors are responsible forpreparing the half-yearly financial report in accordance with the DTRof the UK FSA.As disclosed in note 1, the annual financial statements of the Groupare prepared in accordance with IFRSs as adopted by the EU. Thecondensed set of financial statements included in this half-yearlyfinancial report has been prepared in accordance with IAS 34 InterimFinancial Reporting as adopted by the EU.Our responsibilityOur responsibility is to express to the Company a conclusion on thecondensed set of financial statements in the half-yearly financialreport based on our review.Scope of reviewWe conducted our review in accordance with International Standard onReview Engagements (UK and Ireland) 2410 Review of Interim FinancialInformation Performed by the Independent Auditor of the Entity issuedby the Auditing Practices Board for use in the UK. A review ofinterim financial information consists of making enquiries, primarilyof persons responsible for financial and accounting matters, andapplying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordancewith International Standards on Auditing (UK and Ireland) andconsequently does not enable us to obtain assurance that we wouldbecome aware of all significant matters that might be identified inan audit. Accordingly, we do not express an audit opinion.ConclusionBased on our review, nothing has come to our attention that causes usto believe that the condensed set of financial statements in thehalf-yearly financial report for the six months ended 30 September2009 is not prepared, in all material respects, in accordance withIAS 34 as adopted by the EU and the DTR of the UK FSA.Chris HearldFor and on behalf of KPMG Audit PlcChartered AccountantsLeeds27 November 2009---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 27.11.2009 - 08:01 Uhr
Sprache: Deutsch
News-ID 8923
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