Vp has announced its plans to transform Brandon Hire into a leaner, more targeted and higher-return business, supporting the Group’s specialist divisions. The re-positioning looks sensible to us with execution expected to be “short & sharp”. Today’s 1H26 results reinforced the strategic logic for this move. Group sales declined 2% with adj. PBT 18% lower, impacted by a challenging UK generalist construction market. The FY26 outlook has been reaffirmed, supported by increasing activity levels, strong momentum in the international business and execution of Brandon Hire changes. Further out, we highlight a notable step-up in profitability in our forecasts post today’s news (14.3% EBIT margin FY28 vs our previous estimate of 13.0%). Our unchanged investment case highlights that Vp is the quality player in UK equipment hire, a view reinforced by today’s announcement. A Mar26 PER of 8.1x doesn’t do it justice.
