Vp PLC Vp Plc : Final Results -5-
June 04 2015 - 1:00AM
UK Regulatory
In order to grow, it is essential the Group obtains first class products
at attractive prices and keeps them well maintained.
Mitigation
Vp has well established processes to manage its fleet from investment
decision to disposal. The Group's return on average capital employed
was a healthy 16.2% in 2014/15. The quality of the Group's fleet
disposal margins also demonstrate robust asset management and
appropriate depreciation policies.
People
Risk description
Retaining and attracting the best people is key to our aim of exceeding
customer expectations and enhancing shareholder value.
Mitigation
Vp offers well structured reward and benefit packages, and nurtures a
positive working environment. We also try to ensure our people fulfil
their potential to the benefit of both the individual and the Group, by
providing appropriate career advancement and training.
Safety
Risk description
The Group operates in industries where safety is a key consideration for
the well being of both our employees and the customers that hire our
equipment. Failure in this area would impact our results and
reputation.
Mitigation
The Group has robust health and safety policies, and management systems
and our induction and training programmes reinforce these policies.
We provide support to our customers exercising their responsibility to
their own workforces when using our equipment.
Financial risks
Risk description
To develop the business Vp must have access to funding at a reasonable
cost. The Group is also exposed to interest rate and foreign exchange
fluctuations which may impact profitability and has exposure to credit
risk relating to customers who hire our equipment.
Mitigation
At the year end the Group had a revolving credit facility of GBP85.0
million and maintains strong relationships with all banking contacts.
Our treasury policy defines the level of risk that the Board deems
acceptable. Vp continues to benefit from a strong balance sheet, with
growing EBITDA, which allows us to invest into opportunities.
Our treasury policy requires a tangible proportion of debt to be at
fixed interest rates, and we facilitate this through interest rate
swaps. We have agreements in place to buy or sell currencies to hedge
against foreign exchange movements. We have strong credit control
practices and use credit insurance where it is cost effective. Debtor
days were broadly unchanged at 58 at the year end and bad debts, as a
percentage of revenue, remained low at 0.3% (2014: 0.6%).
7. Forward Looking Statements
The Chairman's Statement and Business Review include statements that are
forward looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which may
cause the actual results, performance or achievements of the Group to be
materially different from any future results, performance or
achievements expressed or implied by such forward looking statements.
Except as required by the Listing Rules and applicable law, the Company
undertakes no obligation to update, review or change any forward looking
statements to reflect events or developments occurring after the date of
this report.
8. Annual Report and Accounts
The Annual Report and Accounts for the year ended 31 March 2015 will be
posted to shareholders on or around 19 June 2015.
Directors' Responsibility Statement in Respect of the Annual Financial
Report (extracted from the Annual Financial Report)
We confirm that to the best of our knowledge:
-- The financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the
Company and the undertakings included in the consolidation taken as a
whole; and
-- The Business Review and Financial Review, which form part of
the Directors' Report, include a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together
with the description of the principal risks and uncertainties that they
face.
For and on behalf of the Board of Directors
J F G Pilkington A M Bainbridge
Director Director
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Vp PLC via Globenewswire
HUG#1926182
http://www.vpplc.com
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