Plant hire company Vp (LON: VP.) has ended its formal sales process after the board unanimously decided to conclude the process. Proposals were reviewed but the board did not feel that they were in the interest of all stakeholders of the fully listed company.
The process started at the end of April, when 50.3% shareholder Ackers P Investment Company Ltd, which is connected to the Vp chairman Jeremy Pilkington indicated that it wanted to explore selling its shareholding. Ackers P Investment Company Ltd says that it does not intend to sell its shares in the foreseeable future.
The plan was to seek a buyer that would continue the culture of the company and enable it to prosper over the long-term. Vp has been listed since 1973.
In the year to March 2022, revenues were £350.9m and underlying pre-tax profit was £38.9m. This year pre-tax profit is expected to be in excess of £40m.
At the AGM in July, the company stated that activity levels were encouraging, although there is cost inflation and supply chain disruption.
The share price has already lost most of the rise that came after the announcement that the process was commencing. At 840p, the prospective multiple is just over ten and the forecast yield is 4.4%.