12.06.2023

Solid result from Boels

Dutch international rental company Boels has reported a solid growth for 2022

Total revenues for the 12 months to the end of December were €1.47 billion up 11.5 percent on 2021.
This was made up as follows:
The Netherlands: €340.2 million +17.8%
Central Europe: €514.3 million +9.9%
Northern Europe: €569.3 million +9.8%
Other- UK and Italy: €46.1 million +8.6%

Pre-tax profit increased 15 percent to €115.1 million

Capital expenditure: on the rental fleet was €519.3 million up almost 49 percent on 2021, the company also spent €17.8 million on acquisitions and €14 million on intangible assets. The average age of the fleet at the end of December was 54 months.
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The Boels depot network

Chief executive Pierre Boels said: “The results show that Boels is capable of further scaling up its resilient business model to leverage economies of scale and competitive advantages. In doing so, connect and commit are key drivers for creating added value, for our customers as well as employees and other stakeholders.”

Chief financial officer Jan Piet Valk added: “The double digit growth rates and record turnover in recent years are the collective result of the great work done by our 7,223 employees in 18 countries. This again gives confidence in our resilient, scalable business model and the growth strategies employed. It will enable us to navigate both the opportunities and challenges posed by the political and macroeconomic uncertainties that we and our customers are facing in 2023.”

“The long term outlook for the rental market remains positive, partly due to the structural shift towards renting rather than owning. This was evident from the strong sustained demand Boels saw in the first quarter of 2023, which resulted in good sales figures. The quarterly results validate the projections for 2023. In the first half of the year Boels completed five acquisitions, in Sweden, Norway, Germany and the UK. The integrations of the recent acquisitions are on track, bringing together valuable capacity and knowledge that add value for customers.”

Vertikal Comment

This is solid performance from Boels, which quietly expands at a steady but consistent pace. The company also benefits from a strongly diverse business, in terms of both geographic spread and product range.

Its largest market is in the Nordic region and Baltic states where it trades under the Cramo banner but has also been doing well in Germany where - perhaps surprisingly - it has 220 depots, with 1,600 employees. The German business reports within the Central Europe division, along with Belgium, Luxembourg and eastern Europe. In terms of further potential, the Dutch market is a good example with the company posting the strongest growth, generating revenues of €340 million, demonstrating how much potential there is for substantial further growth within its existing geographic footprint.

The company is clearly optimistic, in that its capital expenditure as a percentage of revenues is double that of some other companies that we know - although perhaps some of that relates to the average age of its equipment at 54 months? Although in summary the future looks bright for Boels.