Vp on track for £351.3m turnover after Brandon Hire restructure

Equipment rental giant Vp says it will perform in line with market expectations when it unveils results next month, with analysts forecasting turnover of £351.3m and pre-tax profits of £32.5m for the year ending 31 March 2027.

The trading update confirms the company has stabilised after a bruising restructure of its Brandon Hire Station division. During the last financial year, Vp closed 60 Brandon Hire Station branches and cut 400 jobs as it pivoted away from general retail and the DIY construction market.

The strategy shifts the business toward bigger contractor customers and larger projects delivered through specialised divisions such as Groundforce and TPA.

Which markets are driving the recovery?

Vp reported strength across its infrastructure-facing segments. Electricity transmission continues to perform well. Rail remains stable. The company noted "encouraging momentum in water" as AMP8 activity has grown in the second quarter.

AMP8 is the current water industry investment programme, and its ramp-up gives Vp a pipeline of utility work tied to regulated spending cycles rather than the volatile general construction market.

Chief Executive Alice Woodwark said: "The first half of the financial year has again demonstrated the strength and resilience of our diverse business model. Momentum in our UK segment increases our second half confidence, where we remain well positioned to take advantage of supportive infrastructure markets, specifically in water and electricity transmission. We will provide further details at our interim results."

What did the Brandon Hire restructure cost?

Vp acknowledged that the overhaul has not been free. "Performance in the Group's Brandon Hire Station division has improved following last year's restructure, despite continued challenges in the general construction market," the company said. "As expected, some exceptional costs relating to the restructure have been recognised in this financial year."

The statement positions the division as back on a firmer footing after the branch closures and job losses, even as the wider general construction market stays difficult.

Why the pivot matters

The numbers show a company deliberately trading volume for value. Shutting 60 branches and shedding 400 roles removed exposure to smaller, lower-margin hire business. In its place, Vp is concentrating capital on specialised divisions serving utilities, rail and major contractors — sectors where regulated programmes like AMP8 and electricity transmission investment provide longer, more predictable demand.

Woodwark's reference to "supportive infrastructure markets" signals where the company expects growth: water and electricity transmission dominate the outlook, with rail providing a stable base.

Vp will publish further detail at its interim results next month, when investors will see the exact size of the exceptional restructure costs booked this financial year and the pace of the second-half recovery in the UK segment.