08.11.2012

Mills hits new records

Brazilian scaffold and aerial lift rental company Mills achieved record revenues in the third quarter.

Total revenues for the nine months to the end of September were up over 30 percent to R632.5 million ($310.3 million) while pre-tax profits were R156.7 million ($76.9 million)- 81 percent up on last year.

Looking at the third quarter revenues increased 26.9 percent R222.2 million ($109 million), while pre-tax profits more than tripled to R58.8 million ($28.9 million).

The rental division which includes powered access rental saw revenues rise 30.3 percent to R67.4 million ($33.1 million), a new record. EBITDA jumped 42.1 percent to R38 million ($18.6 million).

Utilisation rates remained at constant levels, in spite of a significant increase in the size of the fleet and a new location was also opened in the quarter in São Luís, in Maranhão.

Vertikal Comment

These are numbers that would hearten anyone, the company is investing heavily in powered access with orders for a further $71 million placed in the past few weeks for next year. Mills certainly appears to have the ability to get the equipment out and maintain rates, not always easy in a developing market.

The key thing will be if this can be maintained over the next two to three years. Typically developing markets for powered access grow in spurts with fluctuations between equipment shortages and oversupply which can be very challenging, especially for publicly quoted companies.

At the moment this all looks very impressive