confirms interest in coa

National Hire Group Ltd (NHR) today 9/8/07 released their full year results and confirmed:
1-NHR are participating in the coa due diligence process
2-product coming out of china
3-exposure to releasing product in the USA by being a preferred supplier
4-dividend increased to 5c bringing the full year dividend to 8c
5-ASX Announcement 9 August 2007
NATIONAL HIRE GROUP DELIVERS FY07
NPAT GROWTH OF 13%
National Hire Group Limited (ASX code: NHR) today reported a net profit after tax of
$19.3 million for the year ended 30 June 2007, up 12.9% from $17.1 million for the
previous corresponding period. Fully diluted earnings per share for FY07 was 16.1
cents. The Board has declared a final dividend of 5.0 cps fully franked (4.0cps FY06),
bringing full year dividends to 8.0 cps (7.0 cps FY06). The dividend is payable in
respect of shareholdings registered as at 5:00pm on 28 September 2007and will be
paid on 12 October 2007.
Mr Ray Romano, Executive Chairman of National Hire, said “this is a very pleasing
result for National Hire and clearly demonstrates the positive benefits of the growth
strategy we have been pursuing for the past three years.”
“The strength of the second half of FY07 in particular reinforces to us that we are on
the right track and we are confident going forward”, Mr Romano said.
*** Results Summary***:
• Revenue for FY07 of $287.9 million, up 23% on FY06
• FY07 NPAT of $19.3 million ahead of forecast $19.0 million made in February
2007
• Strong second half performance, as anticipated, despite adverse weather
conditions on the Australian east coast
• Performance driven by organic growth and full 12 months contribution from
AH Plant Hire (6 months in FY06)
• Group EBITDA margin increased to 32.3% from 30.9% in FY06
• EPS 16.1cents (fully diluted), up 12.6% from 14.3 cents in FY06
• Dividends per share 8.0 cents fully franked (increased by 14.3% from 7.0 cps
in FY06)
• Net operating cash flow increased by $27.2 million to $66.1 million

i. Rental Services
Rental Services performed strongly generating revenue of $218.8 million in FY07,
representing growth of $44.2 million or 25% year on year. Along with revenue growth,
margins also improved with Rental Services increasing EBITDA margins from 38% to
40% in FY07.
Growth was driven by continued strength in infrastructure and resource projects in
Queensland, Western Australia and South Australia as well as the full year impact of
the AH Plant Hire acquisition completed in January 2006. Demand in NSW and
Victoria continues to be relatively weak. However, during the year National Hire saw
some recovery in NSW due to project start-ups but core construction and residential
markets remain weak. With NSW representing the largest State by revenue
contribution (31% of group revenues in FY07), National Hire is well positioned for any
upturn in economic growth.

During the year National Hire opened five new branches: Roxby Downs (SA),
Prominent Hill (SA), Emerald (Qld), Mt Isa (Qld) and Coopers Plains (Qld - acquired).
Further branch openings are planned for FY08 in Western Australia, Queensland and
Victoria. In FY08 it is anticipated there will be some changes to National Hire’s
Sydney metropolitan footprint.

In April 2007 National Hire completed the acquisition of the Brisbane based All Site
Rentals business. All Site Rentals was a hirer of site sheds, containers, power poles
and portable toilets providing complimentary product lines to National Hire’s existing
offering in South East Queensland.

FY07 equipment ordered totalled $76 million, with $58 million of equipment delivered
and $18 million of equipment yet to be received at year end.

***Coates Hire Strategic Review***:
In respect of the strategic review currently being run by Coates Hire, National Hire is
participating in the confidential due diligence process. We will keep the market
informed should any material developments arise. In the meantime no further
comment will be made.

OUTLOOK:
National Hire has developed a geographically diversified business in line with its
strategic intent, with NSW representing 31% of local revenues for FY07, Western
Australia 29%, Queensland and NT 21% and Victoria and South Australia 19%.

National Hire is confident that the current cycle and strong performance coming from
resource and infrastructure projects in Western Australia and Queensland will
continue. Whilst there is growth from project start ups in NSW, the group only
anticipates moderate growth in NSW and Victoria in the general construction
markets.
“National Hire is proving that it is able to deliver strong returns from its truly national
coverage, strong relationships and exposure to a broad range of sectors. We are
confident this growth will continue and look forward to another pleasing result in
2008”, Mr Romano said.