07.02.2017

Positive year for Cramo

Finnish international rental group Cramo has reported its full year results with solid improvement in both revenues and profits.

Overall revenues for the full year were 6.6 percent higher at €667.9 million, thanks to higher sales in Finland -up 16.5 percent, Sweden 8.7 percent, Denmark 13.2 percent and Central Europe 1.6 percent all in local currencies. While Norway and Eastern Europe were marginally lower in local currency,with higher falls when translated to Euros. Pre-tax profit for the period was over 36 percent higher at €86.9 million.

Gross capital expenditure for the year was €207 million 18 percent higher than in 2015, while net debt at the end of the year was five percent higher at €387 million.

In the fourth quarter revenues were over three percent higher at €192.9 with Finland up 17.6 percent, Denmark 4.7 percent, Norway nine percent, Eastern Europe four percent, Sweden 2.7 percent Central Europe 3.5 percent.

Chief executive Leif Gustafsson said: “2016 was a successful year for Cramo. The demand for equipment rental and modular space developed favourably, and we succeeded in increasing sales and EBITA result in both product areas. We also achieved all targets set for the strategy period 2014–2016.”

“Our full-year sales grew in local currencies by 7.7% and fourth-quarter sales by 5.1%, sales grew in all markets, with the exception of Norway and Eastern Europe. As for product areas, modular space sales growth was driven throughout the year by high number of new modular space deliveries.”

“Our profitability also continued to develop favourably with full-year comparable profitability improving in all markets, with the exception of Norway and Eastern Europe. I am particularly satisfied with the fact that the Central European operations turned profitable for the full year. Profit development also continued to be strong in Finland and Sweden as well as in the entire equipment rental product area. In addition to the favourable market situation, factors contributing to the good result included the successful implementation of our strategy and the correct allocation of investments.”

"I expect the demand for equipment rental and modular space to stay on a good level in 2017. Over the long term, the demand for rental services is supported by several megatrends, such as urbanisation and efforts to achieve sustainable development. Indeed, one of our most significant development projects has been to clarify our sustainable development strategy so that it is taken into account as thoroughly as possible in all of our operations.”

“In 2016, we started preparing our new strategy. As part of this process we are reviewing the development and performance of our business operations on all markets to improve profitability. Our target is to turn Cramo into a more efficient operator in the equipment rental and modular space markets. I believe that Cramo’s strong position on most of our markets provides good opportunities for this.”

Vertikal Comment

A strong performance from Cramo which has been making solid progress this past year or two, signs are that this will continue in 2017 with all parts of the group beginning to come good with the potential to outperform the market over the next few years as it both consolidates in its current markets and considers expansion potential.

A positive start to the full year rental company results season.