mounting debt,accc problems,tight margins,too much stock on issue,mgmt concerns then it's little wonder that ah plant hire might be in the gun to bew flicked out
but there's another solution in the hire industry if that's where u want to put some of your funds
a firm on the rebound and repositioning itself both at a mgmt and operational level in order to take advantage of the current strong market conditions as a result of a strong/ bouyant property market,infrastructure and DIY work
that stock.....NATIONAL HIRE GROUP LIMITED NHR www.nationalhire.com.au
This morning's agm of NHR@10am a provider of hire equipment on the eastern seaboard of australia should confirm re the 30/6 results and current market conditions the following: 1-demand currently outstripping supply via dwelling,alteration&additions&nondwelling construction plus commencement of several infrastructure projects inc sydney cross city tunnel,m7 west link road,melbourne spencer street station redevelopment in conjunction with other suppliers inc leighton holdings 2-branch closures and amalgamations have not stopped sales rev continued increase 3-$6.3m recent rights issue(92% acceptance) will help assist reduce sub hire expenses for plant and equipment and expand equipment fleet for future hire 4a-pre&post tax profit figures reflect significant turnaround post HIH case laid to rest and mgmt now more focused on daily business operations -revenue increased 4.9%($15,093,000) V industry growth 3.5% -the last 6 mths revenue reflected a 6% increase -pre tax profit y/e 30/6 $111,000 V $1.434M LOSS -ebitda 5.791m increased 10.9% -npat y/e 30/6 $88,000 V $894,000 LOSS -pre tax profit 6 mths to 30/6 $169,000 V 31/12 $58,000 LOSS -interest bearing liabilities reduced by $1.652m 4b- multiple service provider with all divisions reporting increased revenue 5-improvements driven by mgmt restructure(appoinment of mr kelsey ex chairman ah plant hire/arl division),marketing(nine network'DIY Rescue') ,sales initiatives,cost control,capex to build scale,volume & replace sub hire 6-outlook for all buainess units is for increased demand 7-directors intention to return to a dividend payout ratio about 40% 8-IT upgraded to baseplan hire&accounting system that will assist in mgmt & analysis of business performance 9-interest cover @ 3.7 times at 30/6 10-company poised for growth and operating in what is generally a historically busy 6mth trading cycle 11-BIS schrapnel forecasting strong growth until at least 2006 12-company objective to build stock levels,reduce costs and meet demand from all customers 13-continue providing: -wide product range -multiple service -high quality service & expertise -provide economies economies of scale to benefit customers -customer friendly staff -efficient marketing -unified customer contact -continue providing at least 4 business units tools&equipment,portaloo/sitehed,hi lift,& pump rentals
