Vp
Website:
Vp
Index:
FTSE Small Cap
EPIC: VP.
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£212.82M
Payout Frequency: Semi-Annual
Vp Dividend Analysis and Summary
Declared dividend and key dates
- Type: Interim dividend
- Amount: 11.5 pence per share (flat vs H1 FY25)
- Ex-dividend date: 04/12/2025 (derived from record date)
- Record date: 05/12/2025
- Payment date: 15/01/2026
- Cash cost: ~£4.6m
- Policy/track record: Target dividend cover of 2x over the cycle; 30+ years of uninterrupted dividends
Coverage and affordability
- H1 FY26 adjusted basic EPS: 33.0p; implied interim cover c.2.9x
- H1 FY26 statutory basic EPS: 19.8p; implied interim cover c.1.7x
- Prior full-year DPS (FY25): 39.5p (for context)
Financial support and balance sheet
- Adjusted profit: £17.3m (-18% YoY); statutory PBT: £11.0m (-44% YoY)
- Operating cash flow (H1): £36.3m
- Capital investment in rental fleet (H1): £39.6m
- Net debt (ex-lease): £155.9m; leverage expected ~1.6x at year-end (target <2x)
- ROACE: 12.8%
- Liquidity: RCF extended to November 2028
Structural changes and policy context
- Repositioning of Brandon Hire Station: branch network reduced to ~40 (from ~100), headcount down ~400, asset range rationalised to focus on higher-return, B2B customers only.
- Exceptional P&L charge c.£22m in FY26; total cash cost c.£16m (c.£9m outflow before end FY26). Expected to lift Group ROACE by ~2 ppts and improve profitability by FY27.
- CEO transition planned by 31/03/2026; search underway.
- No M&A, demerger, share consolidation or buyback changes announced; contingent remuneration from prior acquisition (CPH) continues.
Analysis: sustainability and growth trajectory
- Sustainability: Despite profit pressure, the interim DPS is well covered on an adjusted basis (c.2.9x) and within the stated policy (2x over the cycle). Balance sheet headroom, sub-2x leverage and extended RCF support ongoing distributions.
- Near-term caution: Statutory earnings and profits are down due to UK market softness and restructuring costs. Exceptional cash outflows (c.£9m in FY26) and elevated capex temper short-term dividend flexibility but appear manageable.
- Medium-term outlook: The Brandon Hire Station reset targets higher returns and, alongside infrastructure-led growth (AMP8 Water, Rail CP7, Transmission), should improve earnings quality and dividend capacity into FY27+. Interim held flat signals a prudent stance now, with scope for growth if execution delivers and macro trends improve.
Risks and flags to dividend stability
- Execution risk on Brandon Hire Station restructuring (timing, cost overruns, customer retention).
- Market headwinds: UK general construction remains weak; Water in transition from AMP7 to AMP8; Rail only recently improving.
- Cash demands: Ongoing high fleet capex and exceptional cash costs; net debt up 11% YoY and net finance expense rising.
- Leadership transition (CEO change) adds some operational risk.
Read more
Vp Annual Dividend Yield - 0%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 17/12/2020 |
17/01/2021 |
Q2 |
22.00 |
|
| 24/06/2021 |
05/08/2021 |
Q4 |
25.00 |
|
Total (Annual Dividends Per Share):
0.00p
Dividend Yield =
Annual Dividends Per Share (0.00p)
÷ Share Price (520p)
= 0%
Vp Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/12/2025 |
15/01/2026 |
Q4 |
11.5000 |
|
| 19/06/2025 |
04/07/2025 |
Q4 |
28.00 |
|
| 24/06/2021 |
05/08/2021 |
Q4 |
25.00 |
|
| 17/12/2020 |
17/01/2021 |
Q2 |
22.00 |
|
| Year |
Total |
Change |
| 2021 |
25.000 |
13.630 |
| 2020 |
22.000 |
|
Vp Dividend Calculator