•National Hire expects NPAT for the first half of FY 2010 to be in the range of $2m to $5m against first half FY2009 of $15.3m. This estimate remains subject to completion of asset sales in Coates Hire in line with current expectations, reasonable trading conditions for the rest of the period and audit review
•The result will be impacted by the Allied divestment process and the deterioration in general trading conditions in Allight (revenues down 25%) and Coates Hire (revenues down 20%) relative to the previous corresponding period
•On a pcp basis, National Hire’s NPAT has been adversely impacted by the Allied divestment process by $5.5m to $6.5m but debt levels within Coates Hire have been reduced through sale proceeds
•Coates Hire expects trading conditions for calendar year 2010 to be significantly better than 2009. Stimulus spending is starting to come through but is expected to gain traction in second half of FY 2010
•Revenues have turned back up off their lows in Coates Hire and utilisation levels are improving
•$470m reduction in Coates Hire net senior debt levels from merger date to $1.555 billion has been achieved by sound capital management and strong cash flows
NHR Price at posting:
$2.01 Sentiment: None Disclosure: Not Held
