LONDON (ShareCast) - (Sharecast News) - Equipment rental company Vp told shareholders on Thursday that its markets were beginning to recover, with revenues now running at over 80% of prior year levels, which it said was driven by improved demand from its core end markets.
The London-listed firm previously said the Covid-19 lockdown had a "severe impact" on most of its business streams, with revenues running at around 55% of normal levels at the lowest point in April.

In response, it mothballed a number of locations, furloughed employees, and implemented a number of cost-saving measures.

On Thursday the company, which was holding its annual general meeting, said that as demand returned, more than two-thirds of furloughed employees had now returned to work, and many of the mothballed locations have re-opened.

Chairman Jeremy Pilkington said the company was expecting the trend to continue in the coming months.

"Activity in infrastructure, housebuilding and construction markets is positive and improving, but some areas such as the civil engineering sector have been slower to recover," he said.

"There are early signs that AMP 7, HS2 and Hinkley Point projects may lead the way in this regard."

Pilkington said the company's cost management had been "excellent", with debt reduced by £22m since 31 March, to £138m at the end of June.

"Whilst many challenges remain, we are positive about the longer term outlook for the business and we look forward to returning towards historic levels of trading during 2021."

At 1138 BST, shares in Vp were up 5.87% at 739p.

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