VP is underpinned by solid construction-related growth and buoyant oil, gas and water markets

The VP group has increased its pre-tax profit by 36% to £14.5m for the year ended 31 March 2007.

The equipment hire specialist said that all its markets had performed well with the oil, gas and water sectors being particularly buoyant.

In its Groundforce divisions, which specialises in excavation support systems, VP said revenues were underpinned by ongoing activity in construction.

VP's Hire Station tools business had a solid performance, but the UK Forks division, which deals in rough materials handling equipment had a challenging year. VP said it was affected by the consolidation of the housing industry, which led to ‘disappointing volumes’ in the South East. However, housing performance improved In the last quarter.

Dividends increased by 25% to 8.25p and revenues grew 22% to £121.6m during the period.