VP Plc
LSE : VP

VP Plc

November 07, 2005 02:02 ET

Vp plc: Acquisition of Trax Portable Access Limited 'TPA' for Pounds Sterling 11.5 million

LONDON, UNITED KINGDOM--(CCNMatthews - Nov. 7, 2005) - Vp plc, ("Vp" or "the Group")(LSE:VP), the equipment rental specialist, today announces the acquisition of the entire issued share capital of Trax Portable Access Limited, for an initial cash consideration of Pounds Sterling 11.5 million. Additional consideration up to a maximum of Pounds Sterling 7.93 million may be payable dependent upon the financial performance of the company in each of the three years commencing 1st January 2006, 2007 and 2008. The management team, who owned a significant minority stake in TPA, will remain with the business and will continue to be led by Managing Director, Dale Robinson, who has many years' experience in this sector. The consideration will be payable from Vp's banking facilities and TPA will operate as a separate division within Vp.

TPA is a leading supplier of portable roadway systems, bridging, fencing and barriers primarily in the UK, but also in Ireland and mainland Europe. The markets served by TPA include the UK and European events market, construction, telecommunications, rail and power transmission.

For the year ended 31st December 2004, TPA reported profits before tax of Pounds Sterling 1.16 million on turnover of Pounds Sterling 6.32 million. Gross and net assets at 31st December 2004 were Pounds Sterling 8.22 million and Pounds Sterling 1.56 million respectively.

With over 80 employees and operating from locations in Worksop and London, TPA has a strong reputation for product innovation, recognised by the securing of the Queen's Award for Innovation in 2005.

Jeremy Pilkington, Chairman of Vp plc, commented: "TPA is a well run business led by a management team we believe are capable of developing the business further. TPA enjoys a strong market position and employs the same core skills of asset management that are common to all Vp businesses. We believe TPA represents an ideal sixth business stream to compliment the Group's existing activities."

Dale Robinson, Managing Director of TPA, said: "TPA has built a successful business with strong customer support and solid foundations for future growth. We look forward to working with Vp to build on TPA's success and take the company to its next stage of development."



Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423 533 445
jeremypilkington@vpplc.com www.vpplc.com

Neil Stothard, Group Managing Director
neil.stothard@vpplc.com

Mike Holt, Group Finance Director
mike.holt@vpplc.com

Abchurch
Sarah Hollins / Justin Heath Tel: +44 (0) 20 7398 7700
sarah.hollins@abchurch-group.com www.abchurch-group.com


Notes to Editors:

The principal activity of the Group is equipment rental and associated services almost entirely conducted within the UK. Vp plc listed on the London Stock Exchange in 1973. For the year ended 31 March 2005, Group turnover was Pounds Sterling 90.0 million.

The Group is now focused on six businesses:

TPA

TPA is a leading supplier of portable roadway systems, bridging, fencing and barriers primarily to the UK market, but also in Ireland and mainland Europe. For further information, please visit www.tpa-ltd.co.uk

Hire Station

Tools and specialist products for industry, construction and home owners.

Torrent Trackside

Infrastructure equipment and services for the railway renewals and maintenance industry.

Groundforce

Excavation support systems and specialist products for the water, civil engineering and construction industries.

UK Forks

Rough terrain material handling equipment for industry, residential and general construction.

Airpac Oilfield Services

Equipment and service providers to the international oil and gas exploration and development markets.

Contact Information