30.08.2017

Record year for GAP

UK based general rental company GAP Hire Solutions achieved record revenues and a solid increase in profits.

The company, which is privately held, has reported revenues for the year to the end of March of £175 million, 11 percent up on the year. Gap entered the powered access market more than two years ago and beefed up its telehandler fleet in late 2015. It now claims that around 30 percent of its revenues now come from the specialist divisions which include Lifting Equipment Hire and London Tools & Access. The fourth quarter also included revenues from its acquisition of Hewden’s depot in Lewes from the administrators.

Pre-tax profits for the year improved just over eight percent to £17.1 million, second only to an exceptional year in 2014/2015 when it achieved £18.6 million. Capital expenditure for the year was £73 million.

The company says that trading since the start of the new year has continued at last year’s pace with revenues up 10 percent.

Chairman Danny O’Neil said: “The company prides itself on being an industry leader in its level of capital investment and modern equipment for hire, ensuring customers a wide range of the most advanced products and one of the youngest fleets in the industry.”

Joint managing director Douglas Anderson added: “Our £4 million purchase of a five acre site at Tilbury in Essex, continues our investment to achieve future growth and plans are underway for its future development to accommodate multiple divisions. It gives us a real credibility, and an ability to do things other people can’t do. If you want a service around the M25 and in the M25, you need to be there and have a meaningful presence.”

Financial director Chris Parr said: “Our long term strategic planning horizon is something that really differentiates the business. Family ownership provides stability and long-term sustainability, enabling us to make exciting investments such as our new site in Tilbury.”

Vertikal Comment

A decent set of numbers from GAP as it expands its product range and geographic coverage. The company is probably the fifth largest in the UK and is possibly benefiting from some of the challenges that Speedy and HSS have experienced in recent years.

The company has a solid customer base but might not be the first choice for those looking for a new national supplier or those preferring a local company as it fits between the two types of business. In spite of its size - with 137 locations and over 1,600 employees - GAP is very much a family company, well run and relatively conservative. It has a real opportunity to continue to benefit from Hewden’s demise, but might benefit from a higher profile, particularly for its specialist divisions.