The period saw investment in the fleet rise from £8.9m last time as turnover ticked up to £84m from £71.1m as pre-tax profit increased 21% to £10.4m.

Forklift and telescopic handlers division UK Forks is working its way towards recovery of the fleet to pre-recession levels on the back of increased demand in the housing market.

Hire rates are also increasing as Vp passes on the rising cost of new machines to contractors.

The firm said: “Prices from manufacturers have escalated significantly since we last added to the rental fleet and hire rates have had to move upwards in order to protect levels of return on investment.”

Specialist shoring division Groundforce continued to perform strongly despite lower than expected work levels from the AMP5 water investment programme.

Vp said: “Construction activity was generally subdued, although demand was noticeably stronger in the South East region.

“Pleasingly, demand for our more specialist, large bracing systems remained more robust.”

Specialist rail division Torrent Trackside was one of the group’s strongest performing operations while Hire Station struggled to convert turnover into profit despite hire price increases.

Jeremy Pilkington, Chairman of Vp plc, said: “I am pleased to report an outstanding set of results demonstrating strong revenue and profit growth along with excellent cash generation.

“The impact of individual sector weaknesses continues to be mitigated through the diversity of the Group’s activities, a strong balance sheet and significant investment into growth opportunities.”