VP to close 60 Brandon tool hire outlets

VP plc said it will close 60 of its 100 Brandon Hire Station tool hire locations in the UK and refocus the division towards its core B2B customers and away from general construction and retail/DIY markets.

The company said Brandon will now operate in support of its specialist rental divisions, which include rail, trenching/shoring, telehandlers and portable roadways.

The move will see around 400 staff leaving the company and there will be a one-off charge of £22 million. VP said other options were considered, but the downsizing and refocus was “the lower cost, most controllable plan which best supports Vp’s customers and strategy.”

Photo: Brandon Hire Station

The announcement on Brandon came as Vp reported its first half year results to 30 September, with revenues down 2% to £188.4 million and EBITDA profit 9% lower at £43.0 million.

Its activities in Germany and Ireland grew by 20% to £35.9 million, backed by infrastructure development in Ireland, where it rents powered access, and upgrades to the power grid in Germany, which benefitted its temporary roadworks business.

In the UK, which represents around 80% of revenues, Vp said general construction was challenging but infrastructure markets were performing better, such as power transmission.

Anna Bielby, chief executive of Vp plc, said; “Vp’s diversified and resilient businesses have delivered a good result against a challenging and uncertain market backdrop.

“Our continued investment in attractive markets such as Ireland and Germany – enabled through our robust balance sheet – continues to yield strong returns, with improvements in our operating model bringing more opportunities to the group.

“The decisive actions to reposition Brandon Hire Station further progresses the Group’s strategy, ensuring greater focus on higher returns, specialist assets and markets.

“Whilst we expect market conditions to remain difficult in the second half of the year, performance is currently expected to be in line with market expectations.”