User:Agovind/sandbox
| |
| Company type | Public |
|---|---|
| Industry | Construction Civil Engineering Rail Water Oil & Gas Events House Building |
| Headquarters |  Harrogate, UK |
Area served | Worldwide |
| Products | Rental of construction equipment |
| Website | vpplc.com |
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Chapter One: 1950s - Trails and Triumphs
[edit]Britain in the 1950s was seen as a powerful trading nation. Manufacturing accounted for 40% of total employment, and a third of national output. The average working week was 48 hours. Manual employment in heavy manufacturing and coal mining prevailed but, in the post-war years, construction was the priority industry with an intensive housing programme instituted by the labour government.
Fred Pilkington’s pre-War civil engineering and construction business began under the name of Fred Pilkington and Son. The post-War years brought changes that would drive businesses to change in one way or another if they were to continue. Fred’s son Geoffrey persuaded his father that the future lay in renting vibratory rollers because of their potential in the construction industry. Vibratory rollers were significantly lighter than traditional deadweight rollers, cheaper to run, and could compact a range of materials much more satisfactorily. Fred acted on his son’s advice and in 1954 Vibratory Roller and Plant Hire (Northern) Limited was established.
The business began trading from a site by the rail tracks in Starbeck, Harrogate. It was advertised as offering the most economical form of roller hire, with rollers for any compacting application from soil, shale and hot dressings to trenches or foundations.
The rollers could be delivered to site, with instruction given where needed on using the new technology. Another valuable service offered to customers was the overhauling and maintenance of diesel and petrol engines. The company operated as an accredited servicing and repair specialist for Stothert and Pitt Limited, who were renowned for their construction equipment and regularly exhibited their compaction machines at the Great Yorkshire Show.
Adventure was very much part of the Pilkington make-up. The family wanted an escape from dismal winters at home and initial post-War hardship. They set their sights on Australia and in 1957 set sail on the RMS Oronsay for Adelaide. Accompanying them were nine key workers with their families, along with five 15-tonne excavators, essentially the assets of Fred’s contracting business. A new life awaited them with the promise of orders waiting to be fulfilled. Alas, their aspirations and dreams of an exciting time ahead were to be cruelly dashed. Arrival Down Under unhappily coincided with what was to be recorded as South Australia’s worst drought. Construction projects were consequently postponed, and the promised contracts never materialised. Money was tight and times were suddenly very hard indeed. After toughing it out for nine months, the decision was taken to sell the equipment and head for home. The Pilkington family returned to the UK with just two of the team workers and their families. It was a hugely disappointing end to their ambitious adventure, but a philosophical view of “nothing ventured, nothing gained” won the day.
The year away from Britain had seen significant change. Prime Minister Harold Macmillan had opened, to great fanfare, the Preston Bypass in Lancashire. It was the country’s first stretch of motorway and heralded the start, in 1958, of the new age of highway motoring. By now there were plenty of firms renting heavy construction equipment with operators, but non-operator plant hire was still a rarity. Geoffrey again influenced his father and persuaded him to focus on this side of the business rather than civil engineering. The decision to discontinue the contracting business, coinciding with the furious expansion in a national road system, turned the fortunes of the company around. The '50s, with its wide-ranging ups and downs, came to an end with renewed optimism for the family business, and the next decade brought 10 years of unbroken profits growth.
New Beginnings
[edit]At that time, there were plenty of firms renting heavy construction equipment such as cranes and bulldozers with operators, but non-operator plant hire, was much less common. Geoffrey decided to place his company’s future in the hands of this untested idea.
1959, one year after the company had returned to the UK, the first section of the new M1 motorway was opened. This marked the beginning of a fast and furious expansion in the nation’s road system, which helped propel the company to over ten years of unbroken profit growth.
Encouraged by the early success of the business investigation began for new opportunities within the non-operator plant hire market. expansion of the product range included pumps and air compressors, changed the company name to Vibroplant, and adopted the V logo. Geoffrey designed it himself, based on the logo for Mogul, a TV series about dealmakers in the oil industry. The logo was another new thing at the time – especially in the construction industry, which was dominated by family companies with long names. Geographically expansion then began, increasing the number of depots throughout the North of England and Scotland.
A Profile of Fred Pilkington
[edit]Fred Pilkington was something of a contradiction in that he had foresight yet was suspicious of new technology. A hard-working yorkshireman and a civil engineer by profession, he took great pride in his occupation as a public works contractor.
Demonstrating a clear head for business, Fred had an impressive talent for mental agility. Such was his speed at working out calculations in his head that he delighted in competing against, and beating, operators of punch calculators. As quick as he was with mental arithmetic, Fred was slower to warm to new ideas. It was not that he was averse to innovation, rather that he liked to mull things over. The move to Australia demonstrated his ability to embrace adventure, while the return to the UK nine months later illustrated the more philosophical side of his nature. Commonsense ruled the day with Fred. Time and again Fred revealed his true character through his ability to adapt to setbacks and react to changing times. His willingness to listen was another quality. While initially sceptical about moving away from construction towards a plant hire and service industry, he could see the sense in his son Geoffrey’s business proposals. Both men had insight and, thanks to their foresight, the family firm not only survived but flourished.
Chapter Two: The 1960s - Growth & Prosperity
[edit]The appointment in 1960 of geoffrey pilkington as managing director of vibratory roller and plant hire (northern) limited was pivotal to the company’s success in its second decade. He quickly proved how much of an asset he was.
Losing no time in flexing his business muscles, Geoffrey immediately explored new opportunities in the non-operator plant hire market. His passion was obvious, his enthusiasm infectious, and his ideas exciting. Fred was proud of his son’s acumen and happy to let him step into the limelight while he took a more background role.
In a relatively short space of time, Geoffrey demonstrated his determination to: (1) establish the company as market leader in non-operator plant hire, and (2) raise its profile to be recognised as the best in the business. At the time, lengthy company names in the construction industry were the norm; Geoffrey took an inspired gamble by opting for a short, snappy one. He changed the company’s rather laborious name to the more memorable moniker of Vibroplant, and relaunched it with a new brand image.
Proving himself adept at marketing, Geoffrey devised a distinctive V-shaped logo to complement the new name of Vibroplant. His design was influenced by a popular TV series running from the mid-1960s called Mogul. The adventure drama was about a fictitious oil company and the exploits of industry dealmakers. Geoffrey’s simple yet visually strong logo fitted in well with the perception of the tough construction industry. Along with the company’s new look and logo came further changes to enhance operations. Pleased yet never complacent about winning new contracts and new customers, Geoffrey knew the company had to work hard to stay on top of its game and ahead of competitors. Aware that internal systems needed updating, Geoffrey embraced technology and in 1968 installed computers. It is believed this move made Vibroplant the first plant hire company to use computers extensively. It was certainly a forward-thinking strategy as computers were still in their infancy in the early 1960s, and it was not until the 1980s that they were widely adopted for business and personal use. Perhaps most notable of all the company’s impressive achievements in the 1960s was Vibroplant’s regional expansion.
Having extended its services and relaunched itself, Vibroplant was in bullish mode. Success breeds success and inspires greater confidence to go further. Thanks to its growing reputation and acknowledged expertise, Vibroplant began an expansion programme and enlarged its depot network in the North of England and Scotland. Along with growth came the need for a bigger workforce. Choosing good team players was another talent Geoffrey had. Among the first appointed were Barry Stoner in 1964 and Alex Robertson in 1969. As the company ended the 1960s on a high, the '70s saw yet more triumphs with a doubling of pre-tax profits. It exceeded the £1m mark, a landmark which more than made up for the disappointment of the antipodean adventure.
A Profile of Geoffrey Pilkington
[edit]A civil engineer by training, in his role as managing director Geoffrey revealed he was both a natural leader and gifted businessman. He was not keen on the slick city look, indeed hated donning a suit, but accepted it was horses for courses and looked the part when he had to.
Not a man to be easily swayed, and even thought sometimes to be a little bloody-minded, Geoffrey was nevertheless affable, widely liked and admired. He won the respect of both his peers and employees. He ruled with charm and cared deeply about his workforce.
Whenever he visited a depot, invariably dressed in sports jacket, checked shirt and Wrangler cords, he would make a point of communicating with on-site staff first. Stepping out of his Rolls Royce, with his trademark pipe between his teeth, he would chat to everyone from the fitters and foremen to the admin and hire staff prior to heading for the manager’s office. He had regard for them all, but expected in return each to give the same 100% commitment to their job as he gave to his. An anecdote giving an insight into Geoffrey’s character was the occasion when he observed, while visiting the new Milton Keynes depot, a fitter half-heartedly sweeping the floor. Leading by example rather than remonstrating with the individual, Geoffrey grasped the brush and did the job himself while simultaneously conducting his meeting with the manager. Everyone had confidence in Geoffrey’s leadership. He was held in esteem by a loyal workforce, who knew they were part of a company going places.
Chapter Three: 1970s - Turbulent Times
[edit]Britain experienced turbulent times in the '70s and in 10 years had three different prime ministers (conservative’s Edward Heath, labour’s Jim Callaghan and, in the last year, its first woman prime minister, conservative Margaret Thatcher).
The country began the decade with low unemployment of 3% but that rose to 5% with one million workers unemployed. The economy suffered with strike action by trade unions. In addition, the effects of the 1973 oil crisis were felt and a three-day working week was imposed. Within five years of joining the EEC, and as a result of our industrial strife and rising unemployment, we were to be dubbed the “sick man of Europe”. Thankfully, the nation’s mood was lifted by the Queen’s Silver Jubilee in 1977. At the same time Vibroplant went through its own turbulent times. It had enjoyed unbroken profits growth for more than 10 years and by 1972-1973 its pre-tax profits had risen from £608,000 to £1.16m. Geoffrey felt the time was right to take full advantage of the company’s success and exploit it to its full potential. He decided to float Vibroplant on the stock market. The process of selling a percentage of the business in the form of shares for trading had advantages and disadvantages.
On the plus side flotation was a way of obtaining access to capital for growth, and gave Vibroplant an opportunity to enhance its profile. On the down side the increased publicity resulted in some unwanted attention. As a reserved, privately owned company, Vibroplant had made a niche for itself as a highly successful non-operator plant hire specialist. By becoming a public company, with consequential information disclosure, it caught the attention of businesses in the same sector. Suddenly non-operator plant hire was seen as a lucrative proposition and, inevitably, the resulting competition subsequently affected the company’s fortunes. At the time of the stock market launch in 1973, Vibroplant plc was valued at an impressive £8.6m and Geoffrey negotiated a price of 143 pence per share with its brokers. However, they reneged on the deal blaming weaker market sentiment. Not to be deterred or browbeaten into a lower price share, Geoffrey appointed new brokers Edward Bates and Sons Limited in association with Greene and Company who agreed to broker the flotation at the original price. Unfortunately 83% of the shares were left with the underwriters. Despite an initial negative reaction from the financial press, Vibroplant’s flotation was a success. Growth and profits continued and Vibroplant secured pole position as the market leader in non-operator plant hire.
In 1975, two years after the stock market launch, Geoffrey began expanding into more specialist products to ensure Vibroplant stayed ahead of the pack. His aptly-named Airpac Rentals supplied high capacity air compressors for rock drilling and industrial applications. It was so successful that within a year it had branched out internationally and into the oil and gas sector. Within two years Airpac was Europe’s leading supplier of specialised compressors.
Domestically the picture was different. In 1976 the recession, caused by the economic instability of the '70s, was beginning to hit home. The Government adopted a policy of widespread spending cuts and private construction projects began to suffer. Geoffrey was open and honest and warned shareholders it would be a difficult time for the company, though with a strong balance sheet he could still afford to innovate.
In 1977, spotting another opportunity, Geoffrey formed Portable Buildings. Another aptly-named specialist service, it dealt with the demand for improved site facilities and temporary office accommodation. It was another ingenious idea that immediately took off. On the face of it, whatever impact national difficulties had on the construction industry and those involved in the sector, Vibroplant was able to rise to all challenges. However, the company was tested the following year when there was a tragedy no-one could have foreseen.
In 1978 Geoffrey went out for one of his routine runs but collapsed near his home and died. He was 57 years old. His health had never given any cause for concern and, indeed, he had demonstrated almost limitless energy since taking over the business. As family, friends and colleagues tried to come to terms with the enormity of what had happened there was a brave and united front to ensure the business met its responsibilities and kept operating.
Immediately stepping up to the mark was Finance Director Roy Clinning. He had been with the company since 1960 and now took over as Chairman. Geoffrey’s widow, Margaret, joined the Board which was restructured. Their younger son Jeremy, who was studying for an MBA at the University of California, Berkeley, joined as Director in 1979.
Geoffrey’s premature passing was a cruel blow that left a huge void. To the outside world it was business as usual. Somehow everyone pulled together and soldiered on. Their determination to do so was perhaps the greatest tribute that could be paid to the company’s inspiring helmsman.
Chapter Four: 1980s - A Taste for Experimentation
[edit]Vibroplant began the decade with optimism. Profits had risen again, enabling it to continue investing in new depots and new ventures. Its profits for the year-end of March 1980 were up from a healthy £3.2m to an even better £3.8m. The following year Jeremy Pilkington became Chairman. He was 30, making him the youngest chairman of a listed company. While he may have wished for a more gradual introduction to his new responsibilities, he certainly wasn’t one to accept a passive role.
One of his first achievements was the launch of Shorpak Trench Systems, which proved highly successful from both a new technological and safety point of view. This specialist service delivered hydraulic support of trenches, thus offering an effective solution to the worrying number of fatalities caused by unprotected trench collapses. Thanks to Shorpak, construction workers could stay outside the danger zones until excavation was made safe.
In 1981, the first year of his chairmanship, Jeremy established two more winning ventures. Vibroplant’s aerial work platform division, Hi-Work, began with an initial investment of £1m, followed later by Prospect Tool Hire catering for both the professional and DIY tool hire markets. However, he inherited one venture that didn’t pan out...
Video Juke Boxes
[edit]V.I. Leisure was the company’s flirtation in 1981 with the leisure industry and, more specifically, its venture with video juke boxes (VJBs). The idea of backing the newly emerged pop music videos, to give patrons of pubs and clubs both visual and audio enjoyment, was thought to have great potential. But there were flies in the ointment.
Firstly, there were glitches with the system’s new technology which proved very problematic. Secondly, regulations came into force requiring VJB venues to be licensed as cinemas, and to have a safety curtain with all seats bolted down. The arrangements were clearly impractical for pubs and it took months to resolve the issue. In that time the company helping V.I. Leisure to market the machines suffered severe financial difficulties and, consequently, distribution ceased.
Adopting a similar philosophical stance as before in Australia, the Directors decided to call it a day. They took the wise decision to pay attention to the industry they knew and to concentrate on doing what they did best. They focused on plant hire, restructured the core business, and gave Depot Managers greater autonomy to run depots as their own businesses. Ambition not dented, the Board also looked at exploiting opportunities presented by the United States.
Expansion into the US
[edit]In mid-1982, Vibroplant made a strategic investment that was to pay huge dividends. It bought Florida Hi-Lift Corporation, a young American aerial platform rental company based in Tampa, Florida. There were two distinct benefits to the acquisition.
At that time, the USA’s construction industry was ahead of the UK’s in terms of adopting powered access equipment, giving Vibroplant the opportunity to explore ideas for the home market. Equally important, buying Hi-Lift gave it a stake in the huge but fragmented US rental market.
Once Vibroplant had made its mark there was no stopping its growth strategy. In December 1986 it acquired Georgia Hi-Lift. There followed, in quick succession, a number of further acquisitions.
By the end of the decade the company’s Stateside operations were known collectively as American Hi-Lift. The organisation, stretching across 12 States via a network of 26 locations, became one of the top five rental businesses in the US with annual revenues approaching $100m. But this highly impressive achievement was not at the expense of the UK side of the business. Back home things were ticking over nicely and Airpac in particular was doing well.
A Parallel Expansion in the UK
[edit]Airpac chose Ingersoll Rand as its partner to develop a custom built machine complying with stringent safety standards for hazardous offshore oil platforms. By 1984 the HP750 Zone II Air Compressor, ideal for space efficiency on confined oil rigs, had become Airpac’s core piece of offshore equipment. In 1988 Airpac’s oil and gas activities expanded with the opening of the Great Yarmouth depot. The new depot complemented the Aberdeen-based HQ and serviced the southern sector of the North Sea. The area was rapidly developing as a valuable oil region and demand for specialist air compressor equipment was growing fast. Additionally, the Piper Alpha oil rig disaster in 1988 led to sweeping changes to standards for offshore safety in the North Sea thus highlighting Airpac’s value.
Growth in the 1980s on both sides of the Atlantic had been extensive and as the decade drew to a close there was another acquisition. In 1989 the company acquired the hire fleet of portable accommodation manufacturer Britspace for £2.67m. Vibroplant was trading strongly, well illustrated by its Rights Issue invitation to shareholders (three for 20) in May 1989. This succeeded in raising £11.7m to fund, without recourse to the Bank, further expansion in both the UK and USA. From a business perspective this was an outstanding decade for Vibroplant.
A Profile of Jeremy Pilkington
[edit]Jeremy was completing an MSC and enrolling in an MBA programme in California at the time of Geoffrey’s fatal heart attack. It was a two-year degree course at UC Berkeley. When he began it, the young freshman felt he had the luxury of time on his side. Sadly, that was not to be the case.
It was, it seemed, down to destiny that Jeremy should join the family business. His elder brother, Michael, had worked for the company but decided his interests lay elsewhere.
Speaking candidly about how things worked out, Jeremy said taking over the business was not a challenge he relished but more a duty and responsibility that had to be taken on.
“For me there was no option of not joining the company if Michael did not want to come in. It was an obligation I had to take on board and do the best I could in that role. I did not have any reforming zeal; it was about maintaining some sort of continuity and safeguarding the family’s investment and the business.” Emulating his father’s style, which was very hands-on and people-orientated, was not something Jeremy consciously tried to do. “Given that I had no business experience elsewhere when I joined, and had no formal training at that time, I very much learned on the job and by the seat of my pants,” recalled Jeremy. His mother Margaret’s presence on the Board was, he added, a support for him in a visible and practical way that was very positive.
It was a few years later, with mistakes along the way, before Jeremy felt he had gained enough confidence to decide new initiatives and business ideas were needed. In that respect at least, he was indeed emulating Geoffrey.
Chapter Five: 1990s - Rationalisation
[edit]Credited with creating the World Wide Web in 1990 was Tim Berners-Lee. This new form of communication became available to the public a year later with three million computers connecting to the internet. By 1996 that had risen to 10 million, and just two years later to 130 million. These were changing times internationally too. East and West Germany became a single country; Iraqi tanks rolled into Kuwait, which ultimately led to the Gulf War, and by the end of 1991 the USSR formally ceased to exist. At home there was another recession. Unemployment rose by 55% from 6.9% in 1990 to 10.7% in 1993, and company earnings reportedly fell by 25%. Nevertheless, the decade got off to a good start for Vibroplant. In 1990 there was the £2.3m acquisition of general plant hire company Bath Plant, and its six south-west branches. Its waste management business went shortly afterwards for £2.35m, making the plant hire takeover a good deal.
The following year Vibroplant made its biggest UK acquisition with the buy out from the SGB Group of Groundforce. The takeover more than doubled the size of its trench shoring business, bringing with it additional technical expertise and a well-recognised brand name that is still retained today. Groundforce is now the UK’s leading rental provider of a range of specialist construction solutions, including excavation support, piling equipment, pipe stoppers, trenchless technology, pumps, temporary bridges and training.
It is acknowledged as the market and technological leader, setting new standards and working with some of Europe’s leading contractors. While Groundforce represented another good deal it was not all plain sailing for Vibroplant.
By 1993 the business had expanded so rapidly it was in danger of straining its capital base. Some rethinking was essential to pull everything back into line, deal with the effects of the recession, and respond to the pressure on American operations from regional economic problems.
Vibroplant took another good hard look at itself. The need to re-focus and implement strategic changes required time not knee jerk reactions. After all, this was a company that had survived many challenges and had much to be proud of. In 1994 the company celebrated 40 years in business and 21 years as a public company. Having done its research, Vibroplant introduced a series of radical changes.
The Rational Route
[edit]Firstly, it set in motion a programme of pruning. The company had concluded there was no point in retaining businesses unable to deliver an adequate return on capital.
Secondly, and more significantly, Vibroplant pulled out of America altogether in 1996, selling American Hi-Lift to Primeco for £44.6m. The build up of the US presence had been from a standing start and was a massive achievement. However, as Jeremy himself was later to concede, the UK and USA operations represented two hungry animals to feed and it was impossible to adequately nourish both. The sell off marked the end of a 15-year involvement in the American market that had been exciting, challenging and hugely successful. However, the company had determined its future lay in the UK market but here, too, changes needed to be made. Five Star, as the portable buildings hire business was now called, was sold.
Thirdly, Vibroplant realised that in the changing 1990s there had to be a premium to pay for its plant offering; equipment was being hired out at 1980 prices yet plant replacement cost had more than doubled. The solution was ServiceMaster, a business model formulated in conjunction with Harvard Business School. Operating from one centralised base, with a call centre and unique IT platform operated by highly trained staff, ServiceMaster’s streamlined approach represented the biggest shake-up in the way plant hirers had operated for the last 50 years. It was an innovative departure from standard industry practice, and a prime example of the company’s enthusiasm for embracing new methods for better outcomes. As well as making financial savings, it resulted in increased efficiency and a guaranteed superior service. The principles of Servicemaster remain in extensive use today in many different parts of the business.
Fourthly, Vibroplant restructured itself and split into separately managed business units. This empowered senior management to think more strategically, thus giving individual businesses freedom to exploit their full potential. The reorganisation led to two gaps in the market being spotted which were filled through the subsequent launch of Power Rental Services and Safety Services. The former specialised in portable power generators, and the latter in confined space entry equipment. There were also further acquisitions.
In 1996 the Board identified that Vibroplant was under represented in one significant area of the construction market, namely RMI (repair, maintenance and improvement). As a result it bought Cannon Tool Hire, a long-established company with six Kent-based branches. Tool hire by now was a rapidly expanding segment of the market and Vibroplant already had sector experience through its 1982 launch of Prospect Tool Hire. More tool hire acquisitions followed in 1997. These included Instant Tool Hire with its three branches in north west England, and Domindo Tool Hire based in Shropshire and the Welsh borders. Five further acquisitions of small tool hire businesses were made in the next two years, building an impressive national network of 43 locations.
As well as exploiting the tool hire market to its advantage, Vibroplant focused on the transport infrastructure sector. Privatisation of the country’s rail industry, set in motion by the Conservative Government in 1993, meant there were new opportunities for independent hirers outside the mainstream construction cycle. Vibroplant followed its instinct and moved in this new direction.
In 1997 the company bought Torrent Trackside, specialising in railway infrastructure, portable plant and associated trackside services. Today, as one of the company’s six mainstream divisions, Torrent Trackside is recognised as market leader with an excellent reputation as a quality supplier to the UK’s demanding rail maintenance and renewals sector.
Overall, this was perhaps the decade that defined the start of the new Vibroplant. The groundbreaking concept of ServiceMaster had required a fundamental change of culture from within so as to promote it successfully to customers. The challenge was met at every level and, yet again, Vibroplant proved it could adapt and innovate. It was confident about its formula for moving forward and its future, which would include further strategic appointments and operational achievements.
Chapter Six: The 2000s - A New Direction
[edit]Within 12 months the company had recruited more people with requisite new skills than it had lost. To signify the move away from the general plant hire activity that had historically defined Vibroplant, the company re-launched itself under the changed name of Vp plc with a refreshed logo. The changes highlighted the company’s new identity and direction while still respecting its history. The new look Vp comprised the following five specialist divisional units. Materials handling specialists UK Forks, representing the surviving element of the historic general plant hire product range, prospered through its house building focus. Today it is the market leading provider of rough terrain fork lift trucks to developers and construction companies throughout the UK. Firmly founded on the ServiceMaster disciplines of the late '90s, UK Forks prides itself on a consistent quality of service and products to its wide-ranging customer base.
Hire Station, specialising in tool hire for industry, construction and DIY, was formed through the merger of five regional tool businesses. Its offering was boosted in 2000 through the acquisition of Handi Hire with its established 24-branch network in the East Midlands. Trading divisions of Hire Station are ESS Safeforce, the UK’s leading rental specialists of safety, survey, inspections and communications equipment in confined spaces and hazardous environments, and MEP, a leading provider of press fitting and low level access solutions. Using the platform originally developed as part of ServiceMaster, today Hire Station’s Manchester call centre impressively processes almost 60% of the revenue generated in tool hire.
Torrent Trackside is the leading supplier to the rail track maintenance market. An important step in its development was the acquisition in 2001 of Hewden Stuart Plc’s rail division. Six years later it acquired First Engineering’s small plant division, a subsidiary of Babcock International, for £1.2m. Today Torrent Trackside has the widest range of specialist portable rail equipment in the UK and covers more of the mainland than any other rail equipment hire company.
Groundforce went from strength to strength through the Noughties. In 2002 it expanded its shoring expertise through the acquisition of Mechplant. A year later it established Piletec, a business specialising in piling hammers and breaking equipment hire, and now the market leader in its field. Other Groundforce acquisitions around this time included Stopper Specialists, Trenchshore and Eve Shorco. Throughout the decade the division continued to grow and develop. In recent years it has entered a new phase of development and has expanded its activities beyond the UK, opening operations in Ireland and most recently in Germany.
Airpac Oilfield Services similarly developed and expanded. In 2002 it established a base in Singapore in response to the growing South East Asian oil and gas exploration markets. To focus exclusively on offshore market opportunities, it sold its onshore compressed air rental activities in the same year. The opening in Singapore represented Vp’s first overseas activity since exiting the US six years earlier. In 2006, Airpac Bukom was formed after its acquisition of Bukom Oilfield Services. The division has since opened locations in Australia, United Arab Emirates and South America. Today Airpac Bukom, via its global operational network, has become an international business service activity supporting the well-testing, rig maintenance, LNG and pipeline markets.
The last division to join the Vp Group was TPA which was acquired in 2005. TPA specialises in temporary access solutions for roadways, pedestrian walkways, bridges and pitch cover requirements. By 2014 this portable roadways specialist had become the UK’s market leader. TPA operates throughout mainland Europe via its base in Germany and provides complex solutions to the transmission, utility and outdoor events sectors.
Chapter Seven: The 2010s - The Current Decade
[edit]Unemployment during 2010 and 2011, however, was reportedly stabilised while the economy flat-lined for some considerable time. According to one national newspaper, the Prime Minister told his Cabinet Ministers to roll up their sleeves and focus on the Government’s programme for growth. Severe cuts in public services were made, belts were tightened, and everyone felt the pinch while the recovery was frustratingly slow in coming.
It was not until 2014 when the UK’s economy was widely acknowledged as growing and returning to pre-recession levels. By summer it was declared as growing faster than that of every other major developed country, and the IMF (International Monetary Fund) upgraded its forecast for UK growth to 3.2% for the year and 2.7% in 2015. The downturn, described as the largest in a century, allegedly cost the UK economy £240 billion.
During this difficult time Vp focused on its own programme of recovery and growth while staying alert to investment opportunities. In 2012 ESS Safeforce and UK Forks acquired two equipment rental activities from the Balfour Beatty Group. In the same year Torrent Trackside opened new depots in Tottenham and Rotherham. In 2013 Groundforce acquired Mr Cropper, a specialist pile breaker rental business. In 2014 Vp acquired TP&E, the track side plant and equipment rental activity of Balfour Beatty Rail Limited.
The Future
[edit]Throughout its history the company has demonstrated a twopronged approach of being forward-thinking yet practical. Its prudence in the past in taking tough decisions has always paid off. In the aftermath of the global recession, the Group’s primary objective now is to create growth by investing in existing businesses whilst maintaining the long term focus of improving the quality of profits measured by return on capital employed.
The company is enjoying a strong business momentum and is confident about its ability to carry on progressing and delivering. All six specialist divisions are recognised as market leaders in their fields, are winning prestigious accolades and industry awards, and have long term plans in place to ensure the Group continues to flourish. The drive from 2015 onwards will be to continue to develop its strong position in the UK, and to supplement this strength by further expansion into Europe and in the wider international arena.
References
[edit]Vp Plc Celebrating Fifty Years 1954-2004
External links
[edit]Category:Companies listed on the London Stock Exchange Category:Construction equipment rental companies