Vp plc Preliminary Results Year Ended 31 March

Vp plc Preliminary Results Year Ended 31 March 2005

Jeremy Pilkington Chairman Neil Stothard Group Managing Director Mike Holt Group Finance Director

Vp – an introduction • Specialist equipment rental • Breadth of sector exposure – earnings resilience • Market leading businesses • Core expertise in asset management • Excellent cash flow and strong balance sheet • Significant growth opportunities identified

Highlights • 5 years of >10% earnings growth • PBT increased by 14%* to £ 9. 4 m • EPS increased by 14%* to 15. 04 pence • Return on capital employed increased to 17% • Dividend increased 15% to 5. 75 pence * Excluding prior year exceptional property profit

Financial Review Mike Holt Group Finance Director

Financial Highlights * Excluding prior year exceptional property profit ** Restated for UITF 38

Balance Sheet * Restated for UITF 38

Operating Cash Flow

Cash Flow

International Financial Reporting Standards

Operational Review Neil Stothard Group Managing Director

Segmental Analysis

Breadth of Markets – Earnings Resilience

Groundforce Excavation support systems and specialist products for the water, civil engineering and construction industries

Groundforce • Market Leader in ground support systems • Good demand from AMP 3/major projects • Successful integration of 03/04 acquisitions • Shoring hire fleet rationalisation • Improved national coverage – Piletec, Stoppers, Survey • Product extension opportunities • Well positioned for future AMP 4 activity when commenced

UK Forks Rough terrain material handling equipment for industry, residential and general construction

UK Forks • Profit and return on capital growth • Focused product investment – 10% ‘net’ growth in fleet • Further progress with major house-builders • Customer appetite for unique offering to the market • Housebuilding/Construction markets relatively supportive

Airpac Oilfield Services Equipment and service providers to the international oil and gas exploration and development markets

Airpac Oilfield Services • Excellent performance • Strong demand from North Sea and South East Asia • International project activity good • New competences being developed • Geographic growth opportunities • Market remains busy, with supportive crude oil price

Hire Station Tools and specialist products for industry and construction

Hire Station • Disappointing results • Turnover reflects exit in prior year of surplus locations • Lifting Point responsible for majority of losses • Tool hire profitable after a difficult 1 st Quarter • Repositioning year restoring stability

Hire Station • Focus on core product lines and guaranteed availability • Launch of regional hire desk structure • Lower cost network supporting local, regional and national customers • Specialist Products Division created December 2004 • Hire Station commenced New Year in line with plan

Torrent Trackside Portable rail infrastructure equipment, lighting and related services for the railway renewals and maintenance industry.

Torrent Trackside • Strong performance in challenging year • Renewals business – further expansion • Maintenance business steady but in transition • Network Rail maintenance plant tender • London Underground – new area for growth • Prospects positive overall in competitive market

Summary • A further year of excellent progress • Profitability underpinned by cash generation and strong balance sheet • Hire Station well positioned to deliver recovery in coming year • Management appetite for growth and incentivised accordingly • Top quality teams across all divisions • Opportunities to accelerate pace of growth within core expertise of asset management

Overview and Outlook Jeremy Pilkington Chairman

Turnover (£m)

Profit Before Tax (pre goodwill) (£m) * *excluding prior year exceptional property profit

Return on Capital Employed (%) % Restated UITF 38

Dividend (pence per share)

Earnings per share (pence) * *excluding prior year exceptional property profit

Total Shareholder Return

Groundforce • Market leader position strengthened • Excellent acquisition identification and integration track record • AMP 4 – expect delays but very positive

UK Forks • Market leader - unique service offering • Converting larger users • Housebuilding remains firm; prospects good • Operational efficiency consistently driving up ROCE - 2002 : 10. 5% 2005 : 14. 4%

Airpac Oilfield Services • Market Leader • Excellent year – strategy bearing fruit • Oil industry activity strong • International growth opportunities • Small but vital role in oilfield supply chain

Hire Station • Very disappointing year, behind management expectation • Improving trend established within tools • Reorganisation and refocus at Specialist Products • Recovery plan back on track but behind schedule

Torrent Trackside • Clear market leader • Another excellent year against background of industry change • Challenge to replace NR maintenance plant volumes • Renewals programme workload strong • Significant opportunities within LUL but will take time

Group Outlook • Overall outlook for the Group very positive - UK infrastructure spend set to continue - Safety and regulatory regimes supporting growth • Breadth of markets gives earnings resilience • Strength of balance sheet and cash flow gives significant investment capacity • Growth opportunities, organic and acquisition, identified in all markets

Group Outlook • Board committed to leveraging up • All levels of management strongly incentivised to deliver earnings growth in their business • Strengthened senior management team