VP plc is proposing a final dividend of 28.0 pence per share (2024: 27.5 pence per share). Together with the interim dividend of 11.5 pence per share, this equates to a total dividend for the year of 39.5 pence per share (2024: 39.0 pence per share). The proposed level of dividend is a balance between dividend growth and dividend cover. Whilst acknowledging the temporary reduction in dividend cover, the Board supports modest dividend growth as a reflection of its confidence in the Group's future prospects. Dividend cover is expected to return to two times in the medium term.
Other financial highlights:
Maintained sector-leading Return on Average Capital Employed (ROACE) of 14.2%
Resilient performance and 3% revenue growth:
Infrastructure market has been supportive, with strong demand from water and transmission sectors partially offset by a slower start to Network Rail's Control Period 7
Specialist construction activities, particularly in London and the Republic of Ireland, have been strong with performance in general construction remaining subdued
Energy markets have been supportive with a good level of project activity
Housebuilding has been stable with slightly lower activity levels than anticipated
Capex investment in rental fleet of £65 million, with a focus on growth areas including Infrastructure and opportunities in Ireland and Germany
Strong balance sheet with Net debt/EBITDA gearing of 1.5x, comfortably within stated target of less than 2x
