05.07.2005

Brandon steady

Brandon, the Bristol based general rental company, released its pre close trading update for the six months ended 30 June 2005. It has reported “steady” trading in its first half and noted that the market has been “slightly less buoyant, reflecting general levels of economic activity in the UK”. Organic growth at the company has, as a result, been lower than that achieved in the first six months of 2004.

It has announced though, the acquisition of three small rental companies and four locations for a total of £900,000. This brings the number of new branches added during the period to 10, giving Brandon a total of 136 locations.

The three new businesses acquired are: Hire and Sales Co Ltd in Sheffield for £500,000; A1 Total Hire in Norwich for £100,000; and Spa Plant Ltd in Bow, East London and Southend-on-Sea for £300,000. The precise final amounts payable may vary in each case depending on the results of asset inventories.

Commenting on the acquisitions, Charles Skinner, Chief Executive said:

"These acquisitions strengthen our regional coverage, through following our successful strategy of acquiring established local businesses and reinforcing our ability to offer a nationwide service to our customers. Overall, the prospects for our business are currently bright."

Brandon’s half year results in 2004 were £22 million, with full year revenues of £47 million. With 2005 full year forecasts ranging from £53 to £57 million, interim revenues of around £25 to £26 million would seem to be reasonable.
Brandon will not release interims until early September.