VP(LSE: VP) extended its recent upward charge on Tuesday thanks to the release of terrific first-half trading numbers. The small-cap was last up 4% on the day, meaning that its market value has swelled 17% during the past fortnight alone.
VP, which provides a variety of rental equipment in the UK and abroad, advised that revenues charged 12% higher between April and September, to £136m. This saw profit before tax and amortisation improve 13% year-on-year, to £21.2m.
While the Brexit question continues to hang heavily on the construction sector, the Harrogate-based company has managed to keep on delivering brilliant sales growth. Indeed, chairman Jeremy Pilkington commented today: "The UK market remains strong, and whilst there is some uncertainty around the implications that Brexit will have on the UK, the day-to-day demand continues to be highly positive."
Meanwhile, rising business at VP's overseas operations are helping to soothe the fears surrounding Britain's EU withdrawal, Pilkington adding: "There is also an improving trend for our international division in the second half of the year."
Dividends jump again
The bright first-half result prompted VP to hike the interim dividend 13% to 6.8p per share, and this bodes well for broker projections of electric dividend growth this year and next. The full-year payment of 22p per share in the year to March 2017 is expected to rise to 24.7p this year and 27.8p in the next period, meaning it sports decent yields of 2.7% and 3.1% for these years.
VP has a proud record of delivering hot earnings growth and City analysts do not expect this trend to cease just yet. A 12% advance is expected this year, and profits growth is predicted to speed up in fiscal 2019 -- a 16% rise is predicted.
And these forecasts make the company brilliant value. Not only does a forward P/E ratio of 11.6 times clock in well below the widely-accepted value watermark of 15 times, but a corresponding PEG readout of 1 confirm's VPs' position as bona-fide bargain.
Build a fortune
The bright long-term outlook for Britain's homebuilders convinces me that Crest Nicholson (LSE: CRST) is another undervalued stock that could make you rich.
Investors will be keenly looking for clues for a boost to UK housebuilding in Wednesday's budget, particularly after communities secretary Sajid David fired the gun last month by proclaiming that Britain needs to build around 300,000 new houses every year to meet surging demand.
Regardless of what Chancellor Hammond decides to pull out of his red box tomorrow, I am convinced that the many regulatory, financial and practical obstacles hampering any ambitious building drive mean that the likes of Crest Nicholson should continue to reap the benefits of high property values and thus deliver brilliant profits growth for many years yet.
City analysts are expecting an earnings rise of 11% in the year to October 2018 alone, a figure that leaves the business dealing on a bargain-basement forward P/E ratio of 7.8 times.
What's more, Crest Nicholson is a particularly-enticing pick for those on the lookout for barnstorming dividend yields. A projected reward of 33.3p per share for fiscal 2017 is anticipated to jump to 37.2p in the current year, resulting in a mountainous yield of 7.2%.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.