If Parliament was a football team, then it would have been relegated donkey’s years ago. Certainly not for a lack of jaw-boning about Brexit, but simply because the key players can’t work together. In turn, creating a right royal mess for the rest of the country (apologies for my frustration). Indeed, politicians could learn a lot from successful UK corporates, who are having to navigate through this self-induced chaos. Take equipment rental specialist, Vp. Clearly the core UK tool hire operation is not totally immune to what’s happening externally. That said, at this stage the group continues to compensate for the uncertainty via experienced leadership, excellent team-work and thorough contingency planning.
Indeed this morning in a FY19 trading update, the firm said that revenues, adjusted PBT (ED est. +15.8% to £47.0m) and EPS (+17.4% to 96p) were all “well ahead of last year and in line with expectations”. Driven by “stable demand from its core infrastructure, construction and housebuilding” sectors (see below) – further boosted by synergies from the £69.2m purchase of Brandon Hire in Nov’17. In fact once fully integrated (est Sept’19), we reckon this acquisition should achieve a 15% ROI, equating to >£4m of annualised savings.
Elsewhere, Airpac Bukom continued to experience “challenging” conditions in offshore oil and gas, although this was more than offset by robust results from TR, the test & measurement business in AsiaPac.