VP Plc has reported a sharp fall in annual profits, as challenging trading conditions and a major restructuring programme at Brandon Hire Station weighed on performance during the year to 31 March 2026.
The equipment rental specialist recorded adjusted profits of £27m, down from £36.7m the previous year, while revenue declined by almost £22m to £358.3m. The results were broadly in line with expectations, after the company issued a profit warning shortly after the appointment of new chief executive Alice Woodwark in February, citing a slower-than-expected return to construction activity at the start of the year.
Despite the downturn, Woodwark struck a positive tone, describing the group's performance as 'resilient' in the face of a difficult macro-economic environment. She highlighted the successful completion of the restructuring programme at Brandon Hire Station, which has undergone a significant transformation as the business shifts away from consumer retail and focuses entirely on business-to-business customers.
The restructuring has seen Brandon Hire Station's branch network reduced from 119 locations to 41, alongside the loss of around 400 jobs and a 40% reduction in its rental fleet. VP invested £10.5m in the programme during the year, with a further £10.6m expected to be spent over the coming years. The company expects the changes to deliver a cash payback within four years.
Elsewhere, VP reduced fleet capital investment by 21.1% to £51.6m as it responded to softer market conditions. Trading across the group's end markets was mixed, with transmission and rail activity remaining steady and housebuilding and energy performing satisfactorily. However, revenue from the water sector declined during the transition from AMP7, although the company expects activity to improve as AMP8 programmes gather momentum.
Reflecting on her first few months in the role, Woodwark said she was encouraged by the strength of the business and the expertise of its people, adding that the group's specialist operations and strategic priorities provide a solid platform for future growth despite the current market challenges.