Final Results

Vp PLC
12 June 2001


Date:      Embargoed until 7.00 am, Tuesday 12 June 2001

Contacts:  Jeremy Pilkington, Chairman & Chief Executive
           Neil Stothard, Finance Director
           Vp plc                                          Tel: [phone]


           Peter Otero
           Financial Dynamics                              Tel: [phone]



                         Vp plc: Preliminary Results



Vp plc, the specialist equipment rental and support services group, announces
its preliminary results for the year ended 31 March 2001:



Financials



*           Turnover of £59.8m (2000 - £55.0m).  This figure includes £4.3m
            turnover from terminated operations.

*           Group profit before tax and amortisation of goodwill £3.3m (2000 -
            £3.5m).  This includes losses on terminated operations of £2.2m.

*           Adjusted earnings per share up 34% at 5.88p (2000 - 4.40p)

*           Recommended final dividend of 2.65p, giving a maintained total
            dividend of 4.05p per share


Operations



*           Handi Hire, acquired in May, now fully integrated within the
            Group's Hire Station business.  This adds 24 Midlands branches to   
            the Group's operations

*           Smaller acquisitions made in Runcorn, Bath, Chapel en le Frith,
            Glossop, and Wembley.  Greenfield openings were established in      
            Portsmouth, Ashford and Aylesford

*           The withdrawal from general plant hire, involving the exit of 25
            depots, has now been successfully completed



Jeremy Pilkington, chairman & chief executive, comments:



'At the beginning of 2001 we announced the launch of a single national brand -
Hire Station - to encompass our various regional tool hire businesses.  This
is now firmly established as one of the leading companies in this rapidly
consolidating sector and operates from a growing national network of over 80
branches.



Furthermore, following the withdrawal from the general plant construction
rental market, the management teams of our six businesses are now focused on
strengthening their respective market positions in order to improve the
quality of earnings and return on capital.'





                             Chairman's Statement



I am pleased to report to shareholders on a year of significant achievement.



The Group has successfully exited the general plant rental market and
repositioned itself around three operating divisions, analysed below,
providing equipment rental and support services through six sector focussed
brands : Hire Station; Torrent Trackside; UK Forks; Groundforce; Airpac and
Safeforce.



Following our exit from general plant hire, historically our core  business,
it was appropriate to adopt a new name and corporate identity for the Group.
Vp plc underlines this change in the Group's activity whilst at the same time
retaining an association with Vibroplant's long established reputation for
quality and service.  Shareholders approved the name change at an
Extraordinary General Meeting on 27th March 2001.



Financial Performance



Group profit before tax and amortisation of goodwill was £3.3m, (2000 - £
3.5m), after losses on terminated operations of £2.2m.  Turnover was £59.8m
(2000 - £55.0m), including £4.3m from terminated operations.



On the same basis, adjusted earnings per share were 5.88 pence (2000 - 4.40
pence).



Proceeds from the disposal of plant and assets from our terminated business,
together with strong organic cash flow, funded capital investment and
acquisition expenditure of £21.8m (2000 - £14.1m) without any increase in
gearing from last year's level of 27%.



The directors are recommending a final dividend of 2.65 pence per share
payable on 2nd October 2001 to shareholders on the register at 7th September
2001, giving a maintained total dividend for the year of 4.05 pence per share.



Hire Station Division



At the beginning of 2001 we announced the launch of a single national brand -
Hire Station - to encompass our various regional tool hire businesses.  In the
four years since we began  building a presence in tool hire, we believe that
Hire Station has firmly established itself as a leading competitor in this
rapidly consolidating sector.  Hire Station has a growing national network of
over 80 branches and is organised around strong regional units where
significant organic and acquisition growth opportunities continue to be
identified.




Turnover in the year increased almost 70% to £27.7m (2000 - £16.3m) and
operating profits to £2.7m (2000 - £1.4m).  Whilst year on year margins have
improved, significant start up costs were absorbed in the period and further
margin improvement is expected as the business matures.  Gross investment in
hire fleet  was £6.6m (2000 - £4.6m).



A key development in the year was the acquisition in May of Handi Hire, a long
established tool hire business with 24 branches in the Midlands.  Handi Hire
is now fully integrated within Hire Station and made a very encouraging first
period contribution.



During the year, Hire Station launched Lifting Point, a specialist lifting and
handling service, Tools & Fixings Direct, an on-line sales business and Hire
Station at Home, a home-owner/d.i.y. tools catalogue.  Lifting Point currently
operates from six branches and will be progressively introduced across the
branch network.



We also made four smaller acquisitions in the year; Weaver (Runcorn), Roy
Francis (Bath), Halls Hire Centres (Chapel en le Frith and Glossop) and Barham
(Wembley).  Greenfield openings were established in Portsmouth, Ashford and
Aylesford.



Torrent Trackside Division



Torrent, which supplies services and equipment to the rail infrastructure
maintenance sector, produced a very satisfactory performance with operating
profits increasing to £1.2m (2000 - £0.8m) on turnover of £5.8m (2000 - £
4.1m).



Gross investment in the hire fleet was £1.1m (2000 - £0.9m).



Safety and quality of service are of particular importance when working on the
rail network and we are very pleased that Torrent's systems are endorsed by
ISO9002 accreditation.  Torrent is now working towards accreditation for the
ISO14001 environmental standard.



Torrent opened a new depot in Kent during the year to improve the level of
service to our customers in the South East and to provide better support for
the Channel Tunnel rail link project.



Torrent is now established as the clear market leader in this specialist
sector and is well placed to take advantage of the growing investment in the
rail infrastructure.



Services Division



Turnover from ongoing businesses comprising UK Forks, Groundforce, Airpac and
Safeforce was £22.0m, generating an operating profit of £2.6m.




UK Forks



UK Forks has made good progress towards establishing itself as the market
leader in telehandler rental. The business operates a national fleet of in
excess of 1,000 units and supplies a wide range of industrial, utility and
construction customers.  Our centralised call handling systems continue to
prove effective in delivering superior levels of customer service, optimising
fleet utilisation and securing better transaction management.



UK Forks added a new location at Aylesford in Kent to improve its service
capability in the buoyant South East market.



Fleet investment totalled £5.9m.



Groundforce



Groundforce produced another good performance.  Continued product innovation
included the introduction of new, in-house designed product lines in response
to the demand for solutions to support ever larger excavations.



Investment by the water industry under their new five year asset management
plan (AMP3) will provide useful  additional demand as it is implemented.



We are confident in the future prospects for this market leading business.



Fleet investment totalled £1.1m.



Airpac



Airpac had a difficult year in its drilling and blasting markets where
depressed workloads put pressure on utilisation and pricing.  In response, we
have reprofiled the fleet to better meet expected future levels of demand and
introduced new products to give us entry into complimentary markets.



In contrast, the oilfield services business performed well.  The refurbishment
of the Zone II air compressors and recent capital investment in steam
generators and booster compressors has enhanced our capability to support the
new technologies now being employed in oil and gas exploration and production.




Significant domestic and international opportunities exist to grow this
business.



Fleet investment totalled £1.8m.



Safeforce



Safeforce provides a comprehensive range of services associated with confined
space entry and other potentially hazardous environments.  Safeforce's
offering includes equipment rental and sales, maintenance and calibration
services, asset management, training and safety audits.  Although still a
relatively small business, Safeforce has built a solid foundation for future
growth.



We believe this sector has good growth prospects.



Fleet investment totalled £0.2m.



General Plant



The withdrawal from general plant hire, involving the disposal of
approximately 7,000 items of plant and the exit from 25 depots, has now been
successfully completed.



Prospects



Following the completion of our withdrawal from the general plant construction
rental market, the Group is now focused on rental services to a wide range of
industrial sectors, with over half of Group turnover derived from
non-construction service activities.  The separate management teams of our six
businesses are focused on strengthening their respective market positions and
improving the quality of earnings and return on capital.



The most important element to the success of a service industry is people.  We
are fortunate to have a high quality workforce which, together with our clear
market strategies and the Group's financial strength, give us great confidence
as we look to the future.

Vp plc



Consolidated profit and loss account for the year ended 31 March 2001


                                          Retained Terminated   Total      Total
                                        Operations Operations
                                Notes   
                                              2001       2001    2001       2000
                                              £000       £000    £000       £000

Turnover                                    55,519      4,303  59,822     55,002


Trading profit                              14,921      (925)  13,996     15,113

Depreciation                               (8,368)    (1,323) (9,691)   (10,591)

Operating profit before goodwill                                          
amortisation                                 6,553    (2,248)   4,305      4,522

Amortisation of goodwill                     (229)          -   (229)       (83)

Operating profit                             6,324    (2,248)   4,076      4,439

Profit on disposal of subsidiary
company                             5           -          -       -       1,487

Profit / (loss) on termination of
businesses                          5           -         30      30     (1,770)

Profit / (loss) on ordinary
activities before interest                   6,324   (2,218)   4,106       4,156

Net interest payable                                         (1,047)       (727)

Profit on ordinary activities
before taxation                                                3,059       3,429

Taxation                            6                          (681)     (1,523)

Profit for the financial year                                  2,378       1,906
                                                             

Dividends                           8

- Interim paid                                                 (618)       (607)
- Final proposed                                             (1,150)     (1,190)

Retained profit for the financial
year                                                             610         109

Earnings and diluted earnings per
5p ordinary share                   7                          5.36p       4.22p

Earnings and diluted earnings per
5p ordinary share before goodwill
amortisation                        7                          5.88p       4.40p

Dividend per 5p ordinary share      8                          4.05p       4.05p
                                            


All the activities reflected in the profit and loss account are continuing, as
defined by FRS 3, with the exception of the prior year profit on disposal of
subsidiary company.


Vp plc

Consolidated balance sheet at 31 March 2001


                                            31 March 2001         31 March 2000
                                              £000   £000          £000    £000
Fixed assets

Intangible assets - goodwill                 4,889                2,013

Tangible assets                             51,183               54,382
Investments - own shares                     1,130                  796
                                                   57,202                57,191

Current assets
Stocks                                       2,277                2,026
Debtors                                     15,191               15,580
Cash at bank and in hand                     1,270                  193
                                            18,738               17,799

Creditors: amounts falling due 
within one year                           (25,337)             (17,677)


Net current (liabilities) / assets                (6,599)                   122

Total assets less current liabilities              50,603                57,313

Creditors: amounts falling due after more
than one year                                     (2,344)              (10,043)

Provisions for liabilities and charges              (833)                 (754)


Net assets                                         47,426                46,516



Capital and reserves

Called up share capital                             2,309                 2,309

Share premium account                              16,192                16,192
Revaluation reserve                                 1,520                 1,646
Profit and loss account                            27,378                26,342
Equity shareholders' funds                         47,399                46,489

Equity minority interests                              27                    27
                                                   47,426                46,516




Vp plc

Consolidated cash flow statement for year ended 31 March 2001

                                                    31 March          31 March
                                                      2001              2000
                                                  £000   £000        £000   £000

Cash flow from operating activities                    10,856             14,351

Return on investments and servicing of finance

Interest paid                                     (564)             (475)

Interest received                                    16               201
Interest element of finance lease rental          (444)             (453)
payments

Net cash outflow from returns on investments
and servicing of finance                          (992)             (727)

Taxation

UK corporation tax paid                                 (784)             (494)

Capital expenditure and financial investment
Purchase of tangible fixed assets              (18,820)           (8,905)

Purchase and sale of investments                  (389)             (275)
Sale of tangible fixed assets                    18,491             5,994

Net cash outflow from capital expenditure and
financial investment                                    (718)           (3,186)

Acquisitions and disposals                                      

Purchase of businesses (net of cash and
overdraft purchased)                                  (1,211)           (1,827)

Equity dividends paid                                 (1,788)           (1,831)



Cash inflow before financing                            5,363            6,286

Financing
Medium term loans                                 (93)                -

Loan notes                                        (57)             (107)
Capital element of finance lease rental        (4,136)           (3,296)
payments

Net outflow from financing                             (4,286)         (3,403)

Increase in cash in the year                             1,077           2,883


Vp plc



Notes


1.                   Basis of preparation


This announcement has been prepared on the basis of the accounting policies
set out in the Group's financial statements as at 31 March 2000.


2.                   Total recognised gains and losses

All recognised gains and losses for the reporting periods are reflected in the
consolidated profit and loss account.


3.                   Trading performance of acquisitions

As a result of the integration of the acquisitions into the existing
businesses, including the transfer of depots to and from the acquired
businesses, it is not possible to disclose separately the effect of the
acquired businesses on the Group results for the year.


4.                   Reconciliation of movements in consolidated shareholders'
funds for the year ended 31 March 2001

                                                         2001              2000
                                                         £000              £000
      Profit for the financial year                     2,378             1,906

      Dividends                                       (1,768)           (1,797)
                                                          610               109
      Goodwill write back / (write off)                   300              (11)

      Net increase in shareholders' funds                 910                98
      Opening shareholders' funds                      46,489            46,391
      Closing shareholders' funds                      47,399            46,489



5.                   Exceptional items

The profit before tax is after the following exceptional credits / (charges):


                                                        2001               2000
                                                        £000               £000
Profit / (loss) on termination of businesses              30            (1,770)


The exceptional profit / (loss) relates to the termination of part of the
business. This was commenced in the year ended 31 March 2000 following a
strategic review. The current year profit is the net of profit on disposal of
general plant fleet less termination costs associated with closing that part
of the business. The prior year loss includes a write down of powered access
equipment and stock together with accruals for associated costs.


                                                         2001              2000
                                                         £000              £000
Prior year profit on disposal of subsidiary                 -             1,487


            The environmental warranties under the contract for the sale of
the US business in 1996 expired in February 2000, allowing the recognition of
this element of the profit on the sale of the business, which was not
recognised at the time of the transaction. This was the final element of the
profit from the sale of the US business in 1996 and had no cash effect in the
year ended 31 March 2000.


6.                   The low current year effective tax rate is due to the
write back of over provisions from previous years. The high rate in the year
ended 31 March 2000 reflected the low estimated tax credit on the exceptional
costs.


7.                   Earnings per share have been calculated on 44,339,232
shares (2000: 45,162,965) being the weighted average number of shares in issue
during the year.  Diluted earnings per share are based on 44,368,755 shares,
leaving it unchanged from basic earnings.


8.                   The Directors are proposing a final dividend of 2.65
pence (2000: 2.65 pence) per share making a total dividend for the year of
4.05 pence (2000: 4.05 pence) per share which is payable on 2 October 2001 to
shareholders on the register on 7 September 2001.


9.                   Reconciliation of operating profit to net cash inflow
from operating activities.
                                                         2001              2000
                                                         £000              £000

      Operating profit                                  4,076             4,439

      Exceptional business termination costs            (939)                 -

      Depreciation and amortisation of goodwill         9,920            10,674
      Profit on sale of tangible fixed assets         (1,785)           (2,106)
      (Increase) / decrease in stocks                    (71)                63
      Decrease in debtors                               1,827               388
      (Decrease) / increase in creditors              (2,172)               893

      Net cash inflow from operating activities        10,856            14,351



10.               Analysis of net debt

                                   As at  Cash Acquisitions    Other      As at
                                 1 April  Flow              Non-cash   31 March
                                    2000                     Changes       2001
                                    £000  £000         £000     £000       £000

Cash at bank and in hand             193 1,077            -        -      1,270
Medium term loans                (6,000)    93        (606)        -    (6,513)
Loan notes                         (235)    57            -  (2,935)    (3,113)
Finance leases and hire          (6,296) 4,136      (1,340)    (976)    (4,476)
purchase
                                (12,338) 5,363      (1,946)  (3,911)   (12,832)


10.               The financial information set out above does not constitute
the company's statutory accounts for the years ended 31 March 2001 or 2000.
The statutory accounts for 2000 have been delivered to the registrar of
companies and those for 2001 will be delivered following the Company's Annual
General Meeting.  The auditors have reported on these accounts; their reports
were unqualified and did not contain a statement under section 237 (2) or (3)
of the Companies Act 1985.



Copies of the full accounts for the year ended 31 March 2001 will be posted to
shareholders in July and the Annual General Meeting will be held on Wednesday
5 September 2001.