cranes & access Kran & Bühne Vertikal Days
Afi Resale
Samoter
niftylift
Lifterz Teupen
Custom Brakes & Hydraulics
KATO
Mainline Access
Platinum Batteries
MCS Rental Software
JLG Ground Support
Planet Platforms
CTE
Vertikal.net > News > Story
E-mail this page to a colleague Print this page
Tadano

Strong quarter for Rami

February 17, 2017 | Comments (0)

Finnish international rental group Ramirent has published its full year results with a strong pick up in the fourth quarter.

For the year as a whole revenues were 4.6 percent higher at €665.2 million, with a strong improvement in Finland where sales were up almost 13 percent, and Sweden up six percent, the two of which between them represent 62 percent of the total group revenues. All other markets were slightly higher in local currency terms apart from Denmark was marginally lower. Pre-tax profits however plunged 40 percent to €28.1 million, due to write offs and other issues earlier in the year.

Capital expenditure was 37 percent higher at €190.8 million of which €165 million covered new equipment and machinery for the rental fleet 31 percent higher than in 2015. Net debt at the end of December was 23 percent higher on the year at €345.8 million.

In the fourth quarter revenues were almost six percent higher at €180.5 million with Finland up almost 15 percent, Sweden 1.2 percent, Norway 4.3 percent in local currency, Europe East 5.9 percent, Europe Central 4.8 percent, while Denmark posted the only decline, falling 7.6 percent. Pre-tax profit soared almost 28 percent to €16.2 million.

Chief executive Tapio Kolunsarka said:“For the full year of 2016, our sales grew at comparable exchange rates by 6.1 percent, our full-year result was impacted by one-off asset write-downs and reorganisation costs related to profitability improvement actions announced in October 2016. In the fourth quarter, thanks to overall good market and weather conditions, net sales grew at comparable exchange rates by 7.3 percent. Our sales grew in all markets except for Denmark and we were pleased to see that we achieved a good sales mix in most of our segments during the quarter.”

“Sales growth was fastest in Finland supported by a strong market, but profitability improved only slightly due to higher costs and a higher share of service sales. In Sweden, profitability improved driven by net sales growth, stabilising costs and a higher share of General Rental in the sales mix. In Norway, overall market demand for General Rental was fair and we managed to stabilise our Temporary Space business. In Denmark, the improving trend in profitability also continued. In Europe Central, the previously announced reorganisation actions started to improve profitability already during the quarter. In Baltics, demand was stable and a good level of profitability was maintained.“

“Looking ahead to 2017, we expect our business environment to remain largely favourable and will concentrate on delivering improved profitability. Our focus in 2017 lies on turning around non-performing units, improving the sales mix, increasing cost efficiency, fleet productivity and developing pricing. We have a lot of work ahead of us to improve our performance and I would like to thank the employees of Ramirent for their engagement and contribution during a challenging 2016.”

“With our strong market positions and financial strength there are plenty of possibilities to develop our business in the long-term. Rental is a future-proof business and we continue to be well positioned to benefit from the trends of outsourcing non-core activities, resource efficiency and increasing demand for productivity in construction. A comprehensive strategy update will be completed during 2017.”

Vertikal Comment

This an encouraging set of numbers from Ramirent which has been floundering for a few years, hopefully the company has regained its Mojo and will see the positive fourth quarter blossom into a strong year in 2017.

The company has also lifted its capital investment which is good as it has some catching up to do. All in all it looks as though the company will post a decent recovery this year.
BoSS Access

Comments

Register today in order to add your own comment, it barely takes a minute. Click here to register

There are no comments.

LATEST NEWS

MOST WIDELY READ NEWS

WORLD TIME

Access Platforms
Access Link
Ommelift
Vertimac
JMS Plant Hire
DingLi
Riwal
Apex 2017
TVH
Welton Media
CPS Lift
CMC
Bravi Platforms
Collett & Sons Ltd
Universal Equipment
Liebherr UK Training

Click here to order your free access catalogue

Top Service Ltd - Specialist Credit Reference Agent

News Now

Mobile Website© 2001-2017 Vertikal Press Website developed by zephir.ch
Holland Lift / Hovago
Weiter ...