National Hire pips FY profit forecast 9/08/2007 By: Andrew Nelson
National Hire Group Limited (NHR) reported a 12.9% increase in net profit after tax to $19.3 million for the year ended 30 June 2007. The company said the performance, which was above it earlier forecast of $19 million, was driven by organic growth and full 12 months contribution from AH Plant Hire.
The company said it is confident that the current cycle and strong performance coming from resource and infrastructure projects in Western Australia and Queensland will continue. Although growth from project start ups in NSW is expected, overall growth in NSW and Victoria is expected to be moderate.
NSW represented 31% of the company’s local revenues for in FY07, while Western Australia accounted for 29%, Queensland and NT 21% combined, Victoria and South Australia generated 19%.
Executive chairman Ray Romano said it was a very pleasing result and clearly demonstrated the positive benefits of the growth strategy that has been pursued 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.
The group’s Rental Services operations performed strongly, generating revenue of $218.8 million in FY07, a 25% increase on the previous corresponding period.
The company said that 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.
The AH Plant Hire acquisition completed in January 2006.
Capital sales also delivered strong revenue growth in FY07, the company advised. Revenue was at $68.4, an increase of $9.8 million or 17% year on year.
The result was due primarily to demand for all products, particularly standby generators as back-up to main power supply, a trend expected to continue in the near term.
Mr Romano said the company was confident that this level of growth would continue and predicted another pleasing result in 2008.
NHR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
