000739 - Tool Hire Top Ten 23/1/09 19:11 Page 2
TOOL HIRE
TOP TEN 2009 continued
the historic revenues shown in Table IC, where most of the accounts We are
relate to accounting periods ending in March 2008 or earlier. hearing of
increasing
TOP TEN GENERATING £972M REVENUE
numbers of
Estimates in Table IA relate to accounting periods one year later, so depot
we are really looking at the position through to the early months of closures; at
2009. Table IA indicates that the Top Ten Tool Hirers are generating a the time of
total of £972m of revenues. This is a rise of 2% on last year when we writing we
estimated that the Top Ten probably accounted for 53% of the total have learnt
tool hire market. We believe that their market share has grown over that A-Plant is closing its eight specialist welding and power
the past year to about 54%, indicating that the market remains at a generation locations and absorbing their activities into its general hire
similar level to last year of approximately £1.8 billion. depots. Major hirers are cutting their depot networks in response to
declining demand and the credit crunch.
Table IA: Estimated Current Annual Revenue (based on interim results
where applicable)
So where does this leave independent hirers, with one or two depots,
Revenue (£m) Change in position from
2008
or perhaps a regional network? Some will be able to take heart from
1. Speedy Hire 425.0 Unchanged
the nationals leaving their patch. Those independents that continue to
2. HSS Hire Service 170.0 Unchanged provide an effective personal service based on their local knowledge
3. Brandon Hire 100.0 Unchanged
and professional approach should come through this recession and
4. Jewson Hire 66.0 Unchanged
increase their share of their own local markets. In recent years,
5. Hire Station 57.0 Unchanged
6. TP Hire 46.0 Unchanged
Executive Hire News has published many articles highlighting the
7. GAP Group Tools 38.0 Up 1
initiatives of local independent hirers. They remain the most
8. A-Plant Tools 37.0 Unchanged formidable competition for the national players. Recession demands a
9. Hirebase 20.0 New entrant
deep knowledge of local conditions and a flexible and quick response
10.Supply UK Hire Shops 13.0 Down 1
to any changes in those conditions - attributes that many
Total 972.0m
independent hirers possess.
Table IB: Market Share (based on estimates in Table IA)
% Market Share
We must emphasise, however, that this is a fast moving scenario and
1. Speedy Hire 23.6 6. TP Hire 2.5 we are all too well aware that the market will almost certainly look
2. HSS Hire Service 9.4 7. GAP Group Tools 2.1
very different in a year’s time and its size, along with the UK
3. Brandon Hire 5.6 8. A-Plant Tools 2.0
economy, will have diminished. The favourite euphemism amongst
4. Jewson Hire 3.7 9. Hirebase 1.1
5. Hire Station 3.2 10. Supply UK Hire Shops 0.8
politicians and leading business people seems to be that the times
Total 54.0%
are ‘challenging’. They are certainly that and a lot more. The
challenge is there for all tool hirers to prove their ability to adapt to
We believe that, for at least the first three quarters of 2008, tool hire probable recessionary conditions throughout the current year and into
was continuing to prosper. The downturn has, of course, now begun the early part of 2010 at least.
to be felt and is likely to become increasingly severe over 2009.
Table IC: Historic Annual Revenue (based on most recent annual
accounts, where available)
Revenue (£m) % Change on previous
year
1. Speedy Hire 415.4 +42.2
2. HSS Hire Service 168.7 +7.6
3. Brandon Hire 100.0* +16.3
4. Jewson Hire 63.0* +10.7
5. Hire Station 57.5 +26.7
6. TP Hire 45.0* +5.0
7. GAP Group Tools 40.0* +29.0
8. A-Plant Tool Hire 37.5* +1.1
9. Hirebase 15.0* N/A
10. Supply UK Hire Shops 10.6* +24.7
Total 952.7m +21.2
*figure provided by the company; in the year ended 31 July 2007, Brandon
revenues were £86m.
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