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Interim Results for the six months ended 30 September 2008 Jeremy Pilkington - Chairman

Vp plc, the Equipment Rental Specialist, presents its operational and financial review, highlighting operational highlights, business performance, financial highlights, and shareholder return.

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Interim Results for the six months ended 30 September 2008 Jeremy Pilkington - Chairman

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  1. Interim Results for the six months ended 30 September 2008 Jeremy Pilkington - Chairman Neil Stothard – Group Managing Director Mike Holt – Group Finance Director Vp plc - The Equipment Rental Specialist

  2. Summary

  3. Operational Review

  4. Operational highlights • Operating profits 18% up at a margin of 19.5% • Healthy net capex of £13.2m • 4 acquisitions - £5.0m • Good AMP4 and infrastructure demand • Oil and gas exploration • Weak housebuilding • Strong start but changing trends

  5. Strength through diversity

  6. Business performance

  7. Capital expenditure

  8. Further progress against challenging market backdrop • Selective acquisitions • Redding Hire, Arcotherm (UK) Ltd, DJ Tool Hire and UCS Plant • Acquisition post half year end : Power Tool Supplies • Quality maintained • Good earnings growth • Margins improved further • Maintained return on capital at 19%

  9. Our response to challenging times • Market diversity provides resilience • regulated markets • oil and gas • Managing for tougher conditions • careful cost control • reducing capital investment • reduced acquisition plans • Opportunity still exists • organic product extensions • current year specialist acquisitions • bolt on acquisitions and new branches • overseas markets

  10. Financial Review

  11. Financial highlights

  12. Continued growth, albeit slowing Operating Profit (£m) Revenue (£m) Actual H1ActualBrewin Dolphin Forecast

  13. Components of pre-tax profit growth (+15%)

  14. Earnings and dividend per share

  15. Robust balance sheet

  16. Strong cash flow and investment

  17. Modest gearing, comfortably within covenants

  18. Summary

  19. Resilient business model • Strong market positions • Diverse offering provides resilience to individual market fluctuations • Adding value through products, services and operating efficiency • Organic product extension and acquisitions provide seeds for further growth • Balance sheet strong • Financing and covenants robust • Strategically focussed on specialist rental sectors

  20. Shareholder return

  21. Interim Results for the six months ended 30 September 2008 Vp plc - The Equipment Rental Specialist

  22. Vp plc - The Equipment Rental Specialist Supplementary data

  23. Investment case • Specialist rental business • Diversified market exposure • Market leading positions • Strong value added service element • Double digit earnings growth potential • Building sustainable capabilities • Consistent performer with quality returns

  24. UK Forks • Rough terrain material handling equipment for industry, residential and general construction

  25. Groundforce • Excavation support systems, specialist solutions and trenchless technology for the water, civil engineering and construction industries, incorporating: • - Groundforce Shorco : shoring • - Piletec : pile driving and breaking • - Stopper Specialists : pipe integrity testing • - Survey Technology : surveying and water flow measurement • - U Mole : trenchless technology

  26. Airpac Bukom Oilfield Services • Equipment and service providers • to the international oil and gas • exploration and development • markets

  27. Hire Station • Small tools and equipment for industry and construction incorporating: • - Hire Station : tool hire products • - ESS Safeforece : safety and environmental products • - Lifting Point : materials handling and lifting gear products • - MEP : pipe fitting equipment • - Climate Hire and Sales : warm, cool, clean and dry air products

  28. Torrent Trackside • Infrastructure equipment and services for the railway renewals and maintenance industry

  29. TPA • Portable roadway systems, bridging, fencing and barriers primarily to the UK market, but also in the Republic of Ireland and mainland Europe

  30. Quality returns Operating Margin (%) Return on Average Capital Employed (%) Earnings per share (pence) Dividend per share (pence) ActualBrewin Dolphin Forecast

  31. Business units – key markets

  32. Operating cash flow

  33. Effective rate of tax

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