TOOL HIRE TOP TEN 2013 continued
a useful measure of a company’s efficiency, but it should be remembered that the results are heavily weighted in favour of those hirers mainly providing tools at the smaller end of the range. These also have a shorter operational life and thus need to generate income quickly. Nevertheless in these constrained economic times, hirers need to ‘sweat’ their assets and get the best return from their investment to maximise cash generation. With the prolongation of ‘challenging times’ now looking inevitable, the conservation of cash should be a top priority for all hirers.
THE SIZE OF THE MARKET
We continue our practice of estimating the size of the tool and equipment hire market. Our main yardstick for calculating the overall size of the market continues to be our estimated market share of the Top Ten. Our calculations of their total revenues are based on our estimates for current revenue as shown in Table 1A. This year’s total is £912.5m, a rise of 4.8% over last year’s figure of £870.5m. We continue to assume that the Top Ten accounts for 50% of the market. Such a basis indicates a total market of £1.825 billion. Given that it is now thought that the UK economy remained static in 2012, this must be deemed a robust performance by our industry and suggests a real growth rate, after inflation, of around 2%.
Despite all the difficulties of the past four years, the tool hire industry has proved to be very resilient but, inevitably, the longer this period of little or no economic growth continues, the more challenging the outlook for both hirers and their customers. It is now over four years since the downturn began; given the life cycle of equipment, those hirers that have deferred capital expenditure are going to find it increasingly pressing and, if the banks persist in their negative attitude towards small and medium-sized companies, difficult to fund. Similar problems will apply to many hire customers, so hirers will need to be very alert for bad debt. Above all, 2013 will be a year when hire companies should remember the late Sir Matthew Goodwin’s great advice that ‘Cash is King’.
Table IA: Estimated Current Revenue (based on interim results where applicable) Hire Company
Est. Current
1.Speedy Hire 2. HSS Hire
3. Brandon Hire 4. Jewson Hire 5. TP Hire
6. Hire Station
7. A-Plant Tool Hire 8. Hirebase
9.GAP Group
10. Supply UK Hire Shops TOP TEN TOTAL ALL OTHERS
TOTAL MARKET
Table IB: Historic Annual Revenue (Based on the most recent available annual accounts, where published) Hire Company 1.Speedy Hire 2.HSS Hire
3.Brandon Hire
4.Jewson Hire
5.TP Hire
6.Hire Station
7.A-Plant Tool Hire 8.Hirebase
9.GAP Group Tools
10.Supply UK Hire Shops TOP TEN TOTAL
Revenue (£m) 310.0 est 180.2 80.3
70.0 est. 65.7 60.7 33.7 33.5 30.0 11.1
875.2
Table II: Gross Book Value of Hire Equipment Hire Company Gross Book Value (£m) 1.Speedy Hire 2.HSS Hire
3.Brandon Hire
4.GAP Group Tools 5.Hire Station
6.A-Plant Tool Hire
7.Supply UK Hire Shops Jewson Hire TP Hire
Hirebase
383.6 105.9 60.6 54.0 44.8 36.0 8.8
Not available Not available Not available
Table III: Historic Revenue as a percentage of GBV Hire Equipment Hire Company This Year 1.HSS Hire
2. Hire Station 3. Brandon Hire
170.2 135.5 132.8
4. Supply UK Hire Shops 126.1 5. A-Plant Tool Hire 6. Speedy Hire
7. GAP Group Tools Jewson Hire TP Hire
Hirebase Est. Current
Revenue (£m) Market Share (%) 320.0 185.0 85.0 72.0 69.0 61.5 37.0 35.0 35.0 13.0
912.5 912.5
1,825.0 Table IV: Number of outlets
17.5 10.0 5.0 3.9 3.8 3.3 2.0 1.9 1.9 0.7
50.0 50.0
100.0 22
1.TP Hire (Inc.126 satellites) 334 2.Speedy Hire
3.Jewson Hire 4.HSS Hire
5.Brandon Hire
6.A-Plant Tool Hire 7.Hire Station 8.Hirebase
9.GAP Group Tools
10.Supply UK Hire Shops TOTAL
No. of outlets +/- Change % Change on year +11 -45 +30 +1
268 251 233 155 107 94 83 82 23
1630
-20 +2
-11 +8
+23 0 0
on year +3.4 -14.4 +13.6 +0.4 -11.4 +1.9 -10.5 +10.7 +39.0 +0.0
93.3 85.8 55.6
% Change +3.3 +5.4
+10.3 +6.1
+17.5 +13.0 +2.1 +8.1
+20.0 -1.8 +6.8
% Change +5.6 -5.4 -0.4
+14.9 -1.5 +0.0 +4.8 N/A N/A N/A
Last Year % Change 152.7 118.0 117.8 134.5 91.7 82.6 53.2
Not available Not available Not available Not available Not available Not available
+17.5 +17.5 +15.0 -8.4 +1.6 +3.2 -2.4 N/A N/A N/A
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98