Vp’s interims confirm another period of significant progress. The key infrastructure, residential and general construction markets remain supportive and Vp is investing in fleet expansion and M&A to accelerate growth. The outlook statement is confident and the Group is well on track to deliver a strong full year outturn. Having upgraded FY19 by 14% for the Brandon Hire acquisition last week, we leave our PBT forecasts unchanged at this stage, but nudge EPS higher by 2%. We also introduce FY20 forecasts, which give an indication of the full potential of the Brandon deal, showing 6% PBT growth yoy. In our view, an FY20 P/E rating of <9x significantly undervalues this high quality Group.
