National Hire Rides Construction Boom Cycle National Hire...

National Hire Rides Construction Boom Cycle

National Hire revealed some good results last week from growth in the equipment hire business to produce some solid earnings for the 2006 year and flagged to the investment markets that its going to be a significant player in the equipment hire sector

refer www.nationalhire.com.au for more info

Obviously the financials demonstrate that quite a bit of nice juicy profit can be made from the business of renting or leasing road signs, road dividers, warning lamps, signals and bits of equipment, large and small into the residential,non residential,civil construction and infrastructure markets to all different types of customers.

Fat returns are possibly available from this industry for companies with management that have a focus on being well run, cost-conscious and backed with enough financial strength to be a consolidator of other players in the hire market sector.

What has helped in part driven National Hire's growth along in 05/06 period, has been the boom in resources companies coming to market,commencement of resource projects primaraily W.A ,ongoing resource projects in australia and also activity by govt and private infrastructure spending on urban rail projects, highways and other work.

The current growth trend looks promising and set to continue, helped in part by the company flagging possible further acquisitions with up to $50m to call upon if need be and the current sector cycle conditions that it finds itself fortunate to enjoy along with other participants

Target sector markets remain relatively robust and a continued focus on leveraging of the global brand name,caterpillar and prior investments like the CAT rental store,allight and ah plant businesses and improved efficiency,profitability,winning new business and focus cost controls within each of those existing businesses

Ongoing capex and training of all staff will deliver competitive pricing,quality equipment,superior performance,customer service,safety and reliability."

Demand for equipment hire overseas in the USA has seen NHR rewarded with a distribution aggrement of allight towers