25.02.2008

Record revenues for Finning

Finning International, the Canadian based parent of both Hewden the UK crane, access and telehandler rental company and Finning UK the CAT dealer, has reported record revenues and improved profitability for 2007.

The group as a whole saw revenues increase by 16.7 percent to C$5.66 billion ($5.57/£2.83 billion) while pre tax profits climbed 26 percent to C$383 million ($377/£192 million).

The UK business in total generated just under 25 percent of the groups revenues, which increased 13.8 percent over 2006 to C$1.4 billion ($1.38/£0.7 billion), two percent of the increase came from a stronger pound leaving 11.2 percent from higher sales in sterling. New equipment sales represented the bulk of this increase.

Profit before interest and tax rose by 12.5 percent to C$73 million ($71.9/£36.5 million).

Hewden is no longer reported as a separate entity, but rental revenue in the UK was up by 7.2 percent, to C$444.5 million ($438/£222 million) “due to a higher asset base, while competitive conditions continue to challenge overall rental utilisation levels and price realization.”

The company also said: “In addition, during 2007 management focused on the disposition of Hewden’s Tool Hire Division and implementation of a new information technology system for Hewden’s continuing operations, thereby reducing focus on market facing activities.”

“As this new system improves processes, and Hewden’s revised product line becomes fully embedded in rental operations, management believes that utilisation, price realisation, and operating results will improve.”

The company’s UK order backlog in sterling terms remained at similar levels to the end of 2006 with the outlook for 2008 looking positive.

In late 2007 and in January and early February 2008, Hewden sold certain properties for cash, raising around C$28 million ($27.6/£14 million) with a pre-tax gain of around C$14 million ($13.8/£7 million).

In January 2008, Hewden also sold its Hoists business. These sales are in line with Hewden's strategy of increasing focus on core business areas where it has already built, or intends to build, a market leadership position.