Preliminary Results 2008

Jeremy Pilkington - Chairman

Neil Stothard – Group Managing Director

Mike Holt – Group Finance Director

Vp plc - The Equipment Rental Specialist

Performance summary

Revenue £149.3m +23%

Profit before taxand amortisation

Earnings per share 36.1p +48%

Dividend per share 10.5p +27%

£20.2m +39%

Operational Review

Operational highlights

• Operating profits 41% up at a margin of 15.6%

• Excellent organic profit growth (82%)

• Strong capital investment - £43m on rental fleet

• 8 acquisitions - £11m

• Strong remediation demand in summer

• AMP4 buoyant

• Weak rail market

• International expansion

Strength through diversity

Mix

Construction 39%

Civil Engineering 14%

Rail 11%

Housebuilding 10%

Oil & Gas 9%

Facilities Management 5%

Events 4%

Transmission 3%

Other 5%

TOTAL 100%

Experience in 07/08 Current Status/View

Stable Stable

Strong Stable

Weak Improving

Strong Weakening

Strong Strong

Strong Strong

Strong Strong

Weak Improving

Stable Stable

Business performance

2008 2007 2008 2007

£m £m £m £m

Groundforce 35.0 28.1 +25% 8.7 6.4 +36%

Hire Station 57.1 44.9 +27% 5.9 3.1 +90%

Airpac Bukom 13.1 10.0 +31% 3.3 2.4 +38%

UK Forks 16.1 13.9 +16% 3.2 1.4 +128%

TPA 14.0 11.4 +23% 1.2 1.0 +20%

Torrent Trackside 14.0 13.1 +7% 0.9 2.0 -55%

Group - - - 0.2

TOTAL 149.3 121.6 +23% 23.2 16.5 +41%

Operating Margin 15.6% 13.6%

Revenues PBITA

Investing for future growth

• Groundforce– Acquisition of ‘U’ Mole trenchless systems business– Expansion into Ireland including acquisition of USS and PTA– Acquisition of Redding Hire

• Hire Station– 9 new locations for tools including acquisition of ET Hire and DJ Tool Hire– Development of ‘virtual hire’ concept– Growth of Climate Hire business and Arcotherm acquisition– Acquisition of NSS and Able safety businesses

• Airpac Bukom– International hub expansion and capital investment programme

Investing for future growth

• UK Forks– Fleet expansion (+13%) to meet growing demand in general construction and

reducing reliance on housebuilding sector

• TPA– Development of MD40 lightweight roll out roadway

– Further penetration /investment in Germany

• Torrent– Acquisition of First Engineering rail plant fleet with 3 year supply agreement

Investing for future growth

2008 2007

£m £m

Groundforce 8.3 5.9

Hire Station 13.0 8.9

Airpac Bukom 9.9 2.5

UK Forks 7.9 3.4

TPA 3.8 4.9

Torrent Trackside 1.9 3.3

Group 0.5 0.5

TOTAL 45.3 29.4

Disposal proceeds 10.3 9.0

Capital Expenditure

Growth strategy progressing well

• Continued organic growth– Significant net capital investment (2 x depreciation)

– Increasing ‘share of wallet’

• Complementary/bolt on acquisitions– New products (U-Mole)

– New markets (Cool Customers, Arcotherm, NSS, PTA, USS)

– Consolidations (ET Hire, DJ, Redding, Able, FEL)

• International expansion– Oil and gas hubs (Sharjah, Curaçao and Perth)

– Ireland (Groundforce and Hire Station)

– Germany (TPA)

Financial Review

Financial highlights

2008 2007

Revenue £149.3m £121.6m +23%

EBITA £23.3m £16.5m +41%

Operating margins 15.6% 13.6% +15%

PBT (pre amortisation) £20.2m £14.5m +39%

Net margin 13.5% 11.9% +13%

ROCE (pre amortisation) 19.1% 16.5%

Interest Cover 7.5x 8.1x

Earnings and dividend per share

2008 2007

Earnings per share

Pre-intangibles amortisation 36.64p 24.56p +49%

Basic 36.09p 24.40p +48%

Fully diluted 34.26p 23.24p +47%

Dividend

Dividend per share 10.50p 8.25p +27%

Dividend cover 3.5x 3.0x

Tax rate 22.5% 27.6%

Components of profit growth (39%)

(1.1) (0.3)-8% -2%

+21%

+21%

+7%

2007 Acq'ns Organic Margin Finance Prior Year 2008PBTA Growth Improvement Costs Property PBTA

Profit

14.5

1.0

3.0

3.0

20.2

Robust balance sheet

2008 2007

£m £m

Intangible assets 41.2 36.3

Property, plant and equipment 100.9 76.8

Non current assets 142.1 113.1

Net working capital (1.1) 4.1

Pension obligations (1.4) (2.0)

Deferred tax (7.8) (6.4)

Deferred consideration (4.6) (6.6)

Capital employed 127.2 102.2

Net debt (53.4) (36.6)

Net assets 73.8 65.6

Strong cash flow and re-investment

2008 2007

£m £m

Operating cash flow 43.1 30.3 +42%

Interest (3.1) (2.0)

Tax (3.6) (2.9)

Underlying free cash flow 36.4 25.4 +43%

Gross capex (45.5) (26.8) +70%

Asset disposals 10.3 9.0 +14%

Free cash flow 1.2 7.6

Pensions (1.0) (0.4)

Acquisitions (10.0) (4.6)

Dividends (3.8) (2.9)

Purchase of own shares (3.5) (3.7)

Exchange Rate Differences 0.2 -

Change in net debt (16.8) (4.0)

Increased net debt but modest gearing

2008 2007

Net debt £53.4m £36.6m

Bank facilities £85.0m £55.0m

Interest cost £3.1m £2.0m

Interest cover 7.5x 8.1x

Net debt/EBITDA 1.3x 1.2x

Headline gearing 72% 56%

Underlying gearing 51% 41%

Quality returns

Operating Margin (%) Return on Average Capital Employed (%)

Earnings per share (pence) Dividend per share (pence)

CAGR = 26% CAGR = 20%

Financial summary

• Pre tax profit growth +39%

• Operating margins 15.6%

• Operating cash flows +42%

Summary

Resilient business model

• Strong and growing market positions

• Diverse offering provides resilience to individual market fluctuations

• Adding value through products, services and operating efficiency

• Prior year initiatives and acquisitions provide continuing momentum

• Balance sheet strong - capacity as required

• Acquisitions will continue where value is identified

• Continued profitable growth despite challenges

• Current year has started well

Excellent business momentum and consistency

Revenue (£m) Operating Profit (£m)

CAGR = 15.6% CAGR = 26.8%

Shareholder return

Vp Total Shareholder Return

Preliminary Results 2008

Vp plc - The Equipment Rental Specialist