15.08.2007

Rami jumps 30%

Ramirent, one of Europe’s fastest growing rental companies and owner of one of the largest powered access fleets, has reported first half revenues of €288 million, an increase of 30 percent on 2006.

Operating profits (EBIT), excluding one off property gains, was €63 million, almost 64 percent higher than last year, while profits before tax jumped by 55 percent to €62 million.

The company spent over €147 million on new plant and equipment for its rental fleet during the period.

In terms of geographic split, Finland accounted for €62 million, Sweden for 73 million, Norway €68 million, Denmark €26 million and Ramirent Europe which covers Eastern/Central European markets for €60.7 million.

Kari Kallio, chief executive of Rami said:
“The business environment remained favourable in all markets. All business segments grew well and net sales in the second quarter were at the highest levelever.
To meet the strong customer demand, Ramirent has continued to invest heavily in additional capacity in advance of the summer peak season.”

“High utilisation rates and increased efficiency improved operating profit in all segments. Especially Sweden and Denmark which displayed strong improvement in profitability as a result of improved efficiency backed by well-timed investments".

“Ramirent will continue to search for bolt-on acquisitions and to further improve internal efficiency to support profitable growth. The company expects to clearly exceed its financial targets."

Vertikal Comment

Ramirent continues to go from strength to strength and is surely on target to become Europe’s largest equipment rental company within the next two years?

The company looks set to sail past the €600 million revenue mark this year, we would expect to see Rami achieve revenues for the year of around €630 to €650 million, assuming no major acquisitions or upsets.

The remarkable thing about the first half numbers are that most of the growth has been organic. While the company that Rami is looking to displace at the top of the European rental tree, Loxam, has been relying purely on acquisitions to hold its place.