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Vp says January adverse weather has added to slowdown

Equipment rental firm Vp said the adverse weather in early January had exacerbated the usual seasonal slowdown for most of its business.

In a trading update Vp said market conditions have remained stable and the firm expects to report results in line with expectations.

General construction has remained challenging, and while some tentative recovery in demand from housebuilders has been seen, commercial construction remains very subdued, a feature Vp expects to continue.

The regulated infrastructure sector has held up well, and although good demand from transmission is expected, and a potential improvement in rail, the end of the AMP4 water programme will lead to an expected hiatus before the AMP5 activity commences.

The oil and gas exploration market is stable, with improving prospects in the medium term.

The trading update said: “The group’s outlook for the current year remains unchanged. We anticipate relative overall stability, with some downward pressure in specific markets.

“However, our broad range of specialist rental activities and market diversity should continue to provide some resilience. We believe that the group will deliver a very satisfactory result in the current financial year, given the challenging trading environment.”