20.03.2016

Western One struggles

Canadian aerial lift sales and rental company Western one reported a steep drop in revenues, creating a loss for 2015.

Virtually all of the setback is due to the companys’ modular space/cabin manufacturing and sales operation, its aerial lift rental business held up reasonably well as did cabin rental.

Total group revenues were 38 percent lower at $233 million, while 2014’s pre-tax profit of $30.7 million was converted to a loss of $22.4 million in 2015. The fourth quarter was even more disastrous with revenues more than halving to $35.9 million.

The aerial lift general rental and sales division achieved full year revenues of $83, almost 10 percent lower than in 2014, however operating profits improved more than 50 percent to $12.2 million.

Chief executive Peter Blake said: “Despite the challenging market conditions throughout 2015, WesternOne maintained its disciplined capital management strategy through preserving cash generated from operating activities and substantially paying down bank indebtedness, thereby advancing a key initiative for 2015 -strengthening our balance sheet”.

“In 2016, as we continue to experience the macroeconomic headwinds that strongly weigh on our businesses, we plan to maintain our focus on prudent capital management and cost containment. Additionally, within Britco, we will seek to generate earnings by continued diversification of our revenue base from further penetration of the permanent modular construction markets. We also intend to pursue relevant opportunities connected to resource development in our markets, specifically prospects related to BC LNG projects. Within WIS, we will continue to execute on prudent capital management through fleet rationalization and redeployment. Driven by refined sales management, we will aim to generate earnings in both our existing and potentially new branch locations”.