TOOL HIRE TOP TEN 2012 continued
tools, but small plant and equipment that has become an integral part of the all Top Ten hirers’ fleets. Calculating accurate statistics on the market is a daunting task. We are faced with several perennial problems:
1. As we indicated above, three of the Top Ten are owned by builders’ merchants and operate within their stores. Thus they are not ‘standalone’ businesses and do not produce publicly available accounts. We are reliant on the limited statistical information that these hirers supply us with. Both TP Hire and Hirebase have supplied us with their revenue figures. However, this year, Jewson has declined to do so, but has provided limited guidance which we have used in estimating Jewson’s historic revenue figure as shown in Table IB. 2. A-Plant and GAP operate combined plant and tool operations; they have provided us with figures relating to the revenues they receive from tools and equipment. 3. We have adjusted the revenue figure for Speedy to allow for income from the larger equipment held by Speedy Power. 4. By their very nature figures based on company accounts are historic. We have attempted to bring the figures up to date in Table IA, which we hope gives a more accurate picture of the current market place.
THE SIZE OF THE TOOL HIRE MARKET IN 2012
Over the past eleven years we have strived to come to a satisfactory method of calculating the size of the tool and equipment hire market. It is probably impossible to come to a solution that will be regarded by all participants as accurate.
There is also the problem that some of the statistics cannot be verified. This applies not just to the information we have been given, but also to our calculations of the hire revenues being generated by the thousands of hirers outside the Top Ten, many of whom are single traders. For the last couple of years we have based our calculations on the assumption that the Top Ten accounts for 50% of the industry’s revenues. We see no reason to change this for 2012. This indicates strong growth (although inflation must also be taken into account). In last year’s review we estimated that the market in 2011 was £1.54 billion, which appears to have been slightly pessimistic if we calculate the figures on the basis of this year’s Table IB, which shows the aggregate historic revenue for the Top Ten as over £800m. On the basis of these accounting for 50% of the industry’s revenues, the total size of the market last year was in excess of £1.6 billion and a comparison with the total aggregate figure for this year’s Table IA would suggest the market is currently growing at about 6%, before inflation. This is encouraging but, when inflation is taken into account, growth is considerably more modest. This can only lead to the inevitable conclusion that hirers must be prepared to take a more positive stance to raise hire rates.
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Table IA: Estimated Current Revenue (based on interim results where applicable)
Speedy Hire HSS Hire
Brandon Hire Jewson Hire TP Hire
Hire Station
A-Plant Tool Hire Hirebase
GAP Group Tools
Supply UK Hire Shops TOP TEN TOTAL ALL OTHERS
TOTAL MARKET
Est. current turnover (£m) Est. market share (%) 304.0 185.0 76.5 70.0 63.0 60.0 37.5 35.0 28.0 11.5
17.0 11.0 5.0 4.0 3.5 3.5 2.0 2.0 1.5 0.5
870.5 870.5
1,741.0
50.0 50.0
100.0
Table IB: Historic Annual Revenue (based on the most recent available annual accounts, where published)
1.Speedy Hire 2. HSS Hire
3. Brandon Hire 4. Jewson Hire 5. TP Hire
6. Hire Station 7. A-Plant 8. Hirebase
9. GAP Group Tools
10. Supply UK Hire Shops TOP TEN TOTAL
Revenue (£m) 300.0 171.0 72.8
66.0 est 55.9 53.7 33.0 31.0 25.0 11.3
819.7
Table II: Gross Book Value of Hire Equipment Gross Book Value Plant (£m) 363.3* 112.0 61.8 47.0 45.5 36.0 8.4
1. Speedy Hire 2. HSS Hire
3. Brandon Hire
4. GAP Group Tools 5. Hire Station 6. A-Plant
7. Supply UK Hire Shops Jewson Hire Hirebase TP Hire
Not available Not available Not available
% Change -0.2* N/A**
-2.0 adj*** +4.4 +8.3 +9.0 +6.3 N/A N/A N/A
*adjusted for disposal of portable accommodation business **the company adjusted its method of valuation *** adjusted to an annualised figure
Table III: Number of outlets
Number +/- Change % change of outlets
1. TP Hire (inc. 130 satellites) 323 2. Speedy Hire 3. HSS
4. Jewson Hire 5. Brandon Hire 6. Hire Station 7. A-Plant 8. Hirebase
9. GAP Group Tools
313 232 221
on year on prev. year +4 -2
+1 +5
+3
+10 +20
+1.2 -0.6 +0.4 +2.3
175 Unchanged Unchanged 105 105 75
+2.9
+10.5 +36.4
59 Unchanged Unchanged 10. Supply UK Hire Shops 23 Unchanged Unchanged
% Change +3.4
+16.0 +4.0 +4.7
+15.7 +7.0
+10.0 +35.4 +8.7 +7.6
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