U.K.-based rental chain Vp posted £134.2 million (about U.S. $194.8 million) in revenue for its fiscal year ended March 31, a 14.8-percent decline compared to £157.5 million for the previous year. Profit before amortization, exceptional items and tax was £16 million, a 26.3-percent decline from £21.7 million for the previous fiscal year.

However, the company reduced its debt by £17.5 million to £48.3 million. Investment in the rental fleet was cut in half to £13.9 million.

“Despite challenging conditions continuing in most of our markets, this has been another robust performance by the group,” said chairman Jeremy Pilkington. “We believe that our combination of products and markets will continue to stand us in good stead, providing a compelling mix of downside resilience, and upside opportunity. Vp enters the new year in excellent financial shape, able to sustain the development of the group over the longer term, and cope with the shorter term challenges presented by the current trading environment.”

Pilkington said that demand within the U.K. has “generally stabilized,” and that some markets, such as rail and residential construction, are showing signs of growth, “albeit from a severely depressed base.”

However, Pilkington said public infrastructure cutbacks could cause challenges. “Public infrastructure investment has become an important market for several of our businesses and the prospect of cutbacks, not so much this year but thereafter, causes us to view medium long-term prospects with a degree of caution.”

Pilkington also added that the company would continue to seek acquisition opportunities such as its recent purchase of Harbray Plant Hire.

Vp is based in Harrowgate, North Yorkshire, England.