Full-year results from the Human Screen

Highlights

1. Operating profit increased by 20%
2. Net profit of ''12m compares to net cash flows of ''33m (''6m after deducting net capital expenditure)
3. Net debt flat at ''40m

The Human Screen comments:

Growth in a tough economic environment, particularly for construction, bolsters VP‘s stalwart credentials even though it operates in a cyclical industry, plant hire. The company says it can maintain a strong position because it supplies very specialised equipment.

High levels of  investment reduces free cash flow, but that is expected because Vp is expanding in the UK, Europe and around the world in the case of Airpac Bukom, which supplies equipment to oil and gas exploration and production companies, while continually retreating from less profitable rentals.

Per share growth exceeded earnings growth of 18% because Vp bought back over 3m shares during the year.

On a PE of 9, the Human Screen likes VP and will consider adding more shares to the Thrifty 30 portfolio.

More on VP.