17.12.2009
Ainscough boosts profits 5%
Ainscough Crane Hire, the UK’s largest crane rental company has reported revenues for the 12 months to the end of May of £128.6 million just over three percent down on 2008.
At the same time the company has improved its pre tax profits by almost five percent to £30 million.
This year’s results include £7.3 million from crane sales, compared to £1.6 million the prior year. They also include a full year of contribution from James Jack Lifting, acquired in April 2008.
Neil Partridge, managing director said: “This performance reflects our strength as clear market leader. The recession has had a direct impact on our business – particularly the downturn in general construction, however our specialist skills in a range of sectors, such as oil & gas and major infrastructure have supported our overall performance.”
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Neil Partridge
“During the period we responded quickly to changing market conditions – reducing our lower tonnage crane fleet and streamlining operating costs across the business. We also completed the integration of James Jack lifting services which has delivered an excellent contribution to the overall business and extended our reach in Scotland. At the same time we have retained our commitment to offering the best crane fleet in the industry and have invested a further £30 million, primarily in new heavy lifting crane fleet suited to major infrastructure projects."
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One of Ainascough's new Terex Demag CC2500-1 crawler cranes
“Market conditions remain extremely tough, however I am confident that we have the right strategy, management, people and fleet in place to continue to weather the economic storm.”
Vertikal Comment
While the like for like numbers at Ainscough are well down on last year – taking out the profits from higher crane sales and the contribution from James Jack – this is still an excellent result in what is a tough market.
Ignoring the comparisons with prior years, generating over £30 million pre tax profit from £128 million of revenues is a substantial achievement by anyone’s measure. 2009/2010 is likely to be more of a challenge, but the company clearly has a good margin in hand to play with.
Expect Ainscough to be ready to move again when further acquisition opportunities arise in the first half of 2010.
Peter Cosgrove
Isn't this only part of the story? Ainscough Crane Hire Ltd. is owned by Bradley Hall Holdings Ltd. and that company holds all the debt used to acquire the business. In their last accounts for 8 months to 31st May 2008 (since the MBO) Bradley Hall lost £3M overall thanks to an interest charge of £21M on over £300M of debt. If that is the case, I calculate that in a full 12 months the interest cost would be over £30M wiping out any profit in Ainscough Crane Hire. Bradley Hall has a net shareholder deficit of £3.4M and the whole lot is therefore only kept afloat by the good grace of Bank of Scotland or Lloyds. Bit of a different picture than is painted in your article.