from egoli......Coates Hire Limited (COA) said today that it had...

from egoli...
...Coates Hire Limited (COA) said today that it had achieved a net profit after tax of $47 million, 41% higher than the previous financial year. Chief executive officer, Mr Malcolm Jackman, said the outlook remains strong and positive, with greater stability in construction activity, at higher levels, and a spreading of projects over time as capacity constraints take hold.

The company achieved hire sales of $457 million. EBIT before significant items was up 34.8% to $78.6 million and revenue jumped 18% to 468 million.

Coates declared a fully franked final dividend of 7c per share, resulting in a full year dividend of 13c per share, up from 11c last year.

Mr Jackman, said the pattern set in the first half had been continued, but additional efforts were being made to ensure greater stability of revenue growth over the next five years.


"The increase in revenues has been achieved predominantly from within our existing businesses, but instant contributions from a number of small acquisitions, executed as part of our ‘sweep and plug’ expansion strategy."

In Australia, the group had strong performances across all regions, with improvements in Northern at the end of the period being helped by the Millens and the CHS acquisitions.

"The end of external impediments to activity on major infrastructure projects underway in NSW also allowed Eastern to continue its dramatic improvement over prior years and the Western and Southern business units improved on strong existing trends to exceed earlier expectations," Mr Jackman added.

The Indonesian division changed little in terms of business activity. The group said that the completion of the presidential elections in September will be seen to be a potential starting point for a return of business and investment confidence and a stronger demand for hire services from Coates’ local unit.

The hire company sold out if its UK business citing that a better use of capital and a stronger focus on the more profitable offshore part of the business would serve shareholder interests better. The assets and operations of the onshore business were sold to UK operator Speedy Hire PLC.

Mr Jackman concluded by saying that they will continue to monitor the fleet reinvestment program and make sure it is aligned in a way that allows the group to meet emerging demand.

"Maximise our return on investment, yet at the same time retain the ability to manage future demand shifts."


in my opinion given the strength over the last year
in the hire ,do it your self,building,housing & infrastructure mkts the coa group results are disappointing:
ebit up 34.8%
sales rev up18
npat up 41%