VP warns of slow recovery

In the six months ended September 30 2010, the company's profit before tax and amortisation was 8.6m, down from 9.8m in the same period last year.

Revenues for the half year were 71.1m, which was the same level as the first half of 2009.

Jeremy Pilkington, the chairman of VP, said: "Despite the adverse conditions which have existed in some of our core markets,

the group has delivered very satisfactory profits and margins.

"These results reinforce our confidence in the quality of our business model, which has demonstrated once again its ability to mitigate the impact of individual sector weaknesses through the diversity of the group's activities.

"The group has delivered further significant debt reductions and our balance sheet is again stronger than at the same time last year. This financial strength will continue to be a great asset to the group in its future development.

"The group has experienced a period of general stability over the last six months and this has continued since the end of the half year. We believe any recovery in the economy will be slow and that there will be further challenges along the way. However, the board remains confident of the group's ability to capitalise on opportunities as they arise."

Over the last year, Vp has shed around eight per cent of its workforce to leave it with 1,358 staff. Other cost measures have included wage freezes, fleet reductions and a handful of depot closures.