TOOL HIRE TOP TEN 2013 continued
TP HIRE
Chief Executive (Travis Perkins plc) Geoff Cooper Group Hire Director Head Office
Richard Dey
Telephone Number Website
Hire activities
Geographical coverage Status
COMMENT
TP Hire is very much focused on the traditional customer base of Travis Perkins, a supplier of building materials in the UK with more than 600 branches. The hirer sees its role as encouraging Travis Perkins customers (many of whom are small builders) to use their services. The potential to further expand hire within the Group’s customer base remains considerable and can be done at a low cost within the Travis Perkins branch network.
Richard Dey says TP Hire has had “a good year” and he describes the signs for the coming year as “encouraging.” The hirer has reacted to the tough market conditions by continuing its focus on its core customers and achieving more revenue per location, rather than expanding its network. In 2012 TP opened eight specialist hire branches within BSS Industrial (which had been acquired by Travis Perkins in 2010). These operate under the name of Hire-it and are tailored to the plumbing and heating trade. “We expect to add a further 10 branches to the current Hire-It network within BSS during 2013 and this will be followed by further expansion in TP later in the New Year and into 2014.”
HIRE STATION Managing Director
Head Office
Telephone Number Website
Hire activities COMMENT
Late November saw the release of Vp’s interim results for the half year ended 30 September. Vp has been an above average performer throughout the downturn period and it continues to perform well. The latest six month results, with its revenue just over 1% up compared with a 5% increase in operating profits, suggest that the management is focused largely on improving operational efficiency.
This is certainly the message behind the figures for hire subsidiary Hire Station, where revenue was little changed, but operating profits moved ahead by over 16%. ESS Safeforce is singled out as having delivered ‘a strong first half’, in contrast to MEP, described as having ‘continued to experience challenging market conditions.’
Vp indicated that actions taken to improve contract selection and fleet mix had assisted in delivering the margin improvement at Hire Station. First half capital expenditure at the tool hirer rose to £5.2m from £4.7m in the same six months of 2011.
John Singleton
Field Farm Road, Long Eaton, Nottingham, NG10 3FZ
0845 604 5337
www.hirestation.co.uk
Geographical coverage Status
General tool hire, lifting equipment, safety equipment and confined space training (ESS Safeforce), press fitting and electro-fusion (MEP), heating and cooling products (Climate Hire), ‘white label’ partnerships e.g. with Homebase, Garden Centre Group (Virtual Hire) National
Subsidiary of Vp plc, a public company listed on the London Stock Exchange
HIRE STATION LTD: RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012 (reported as part of VP plc) Six months ended Six months ended % Change 30.09.12 (£m)
30.09.11 (£m)
Revenue 29.3 29.1 Operating Profit
1.70 +0.7 1.46 +16.4 29
In July 2012 Vp acquired the business and assets of two equipment hire activities from Balfour Beatty for £4.0m cash. As part of this transaction Hire Station acquired the construction giant’s survey, safety and communication equipment hire activity and an agreement to supply these services to Balfour Beatty for a minimum of three years.
John Singleton describes the current conditions as “very tough” and says that the company is achieving its improving performance by re-balancing its fleet through divesting of lines that are not earning and investing in equipment where it can achieve better returns. There has been some uplift in hire rates, but its effect is largely negated by bad debt. Despite the difficult market background, John Singleton expects the second half of Hire Station’s financial year to be better and points out that the company has recently benefited from the extensive flooding in many parts of the UK creating a high level of demand for dehumidifiers, of which, he believes, Hire Station has the biggest fleet in the market.
Lodge Way House, Harlestone Road, Northampton, NN5 7UG 01604 752424
www.travisperkins.co.uk/hire Small plant and tools National
Division of Travis Perkins plc
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