22.03.2021

Second half pick up for GAM

Spanish rental company GAM ‘General de Alquiler de Maquinaria’ has reported a strong pick up in the second half of the year.

Total revenues for the 12 months to the end of December were €133.6 million just 6.5 percent below 2019. However, the 2020 numbers include a number of significant acquisitions at the start of the year, including Clem Ecologic, Clem Alba, and Makanusi in May. Pre-tax profits dropped from €43.5 million to just €845,000. However, the 2019 including almost €40 million of exceptional gains – most of it from restating earlier results to comply with the IFRS standard for leases.

The company’s shareholders led by Francisco Riberas – who owns almost 60 percent of the equity - injected €30 million of new capital. In order to meet one of the conditions laid down by its banks in order to approve a five year renewal of its €75.4 million credit line that was due to expire this year.

president Pedro Luis Fernández said: “GAM has focused on the well-being of our employees and in maintaining a close relationship with all of our customers during this pandemic, even reinforcing it. The results that we just present are a sample of our strength and the ability of our employees to face adversity with effort and determination. Without a doubt, we are fine prepared to face this uncertain 2021 in which we will continue to expand our portfolio of services to accompany our clients and generate more value for them ”.

Gam was set up in 2003 from the merger of three rental operations - Alquioviedo, Aldaiturriaga and T. Cabrera and has largely grown from regular acquisitions including access rental company Vilatel. By 2008 it had achieved revenues of around €400 million as it benefited from Spain’s construction boom, but then ran into serious financial difficulties as the financial crash hit Spain particularly hard and it had a massive debt mountain. It began expanding overseas and now operates from 75 locations across 10 countries with 1,100 employees.

Vertikal Comment

It is encouraging to see the new owners of Gam injecting capital into the business and helping put it on a firm footing. What it does not seem to have disclosed is the average age of its fleet, which was aged during the financial crisis.

But all said and done a positive result.