TOOL HIRE TOP TEN 2014 continued
We are the first to concede that this is a difficult operation. However, we are very pleased to report that last year we estimated that the revenues of the Top Ten totalled £912.5m, and that this year’s Historic Revenue for those same companies (as shown in Table IB) totalled £914.1m, a difference of less than 0.2%.
Clearly, individual company performances vary greatly. Some, like Speedy, have found growth in the UK difficult in recent years as they have had to rationalise, and re-configure, their large depot networks to adjust to reduced demand. By contrast, those hirers owned by builders’ merchants have been keen to extend their reach into their groups’ customer bases and have on-going and easily-implemented programmes of expansion within their parents’ networks.
Our estimate for the current revenues of the Top Ten (Table IA) of £994.5m shows growth of just over 8% for the year. Even when inflation is taken into account, this easily outperforms the UK economy as a whole. Last year we estimated that the UK tool hire market was worth £1.825 billion. This figure was based on the premise that the Top Ten companies accounted for 50% of the market. Since then, there have been signs that many independent hirers are growing well and making inroads into the overall market as a result of the rationalisation of depot networks by some of the larger companies.
As a result we have decided that the balance of the market share has tipped away slightly from the leading companies. This year we estimate that the Top Ten account for 49% of the market. This indicates a total market value of £2billion, a rise of 11% on last year. This is the first time the tool and equipment hire industry has achieved revenues in excess of £2billion and it is a tremendous achievement.
At the outset of the New Year, there had been a distinct shift towards greater optimism for both the UK economy, in general, and for the construction industry, in particular. Economists are forecasting growth of about 2.4% for the overall economy. The uplift in construction activity at the end of 2013 is particularly welcome news for hirers. The Markit/CIPS purchasing manager’s index recorded a level of 62.1 in December, well above the 50.0 level which marks the difference between growth and contraction.
December saw the eighth consecutive month of growth for construction. House building has been the prime mover, but now commercial building work is also growing fast. There remains concern over the continuing low level of bank lending to business. Of course, this might be regarded as a mixed blessing for hirers. If their customers are finding getting loans difficult, it should encourage them to hire rather than buy. Overall, the hire market has grown strongly against an almost stagnant economic background. With economic prospects now looking significantly better, we believe 2014 will prove an excellent year for the UK tool and equipment hire industry.
26
Table IA: Estimated Current Revenue Hire Company
1.Speedy Hire 2.HSS Hire
3.TP Hire
4.Brandon Hire
5.Jewson Hire 6.Hire Station
7.A-Plant Tool Hire 8.Hirebase
9.GAP Group Tools
10.Supply UK
TOP TEN TOTAL ALL OTHERS
TOTAL MARKET
Est. Current
Est. Current
revenue (£m) Market Share (%) 345.0 190.0 86.0 78.0 76.0 65.0 48.5 48.0 41.0 17.0
994.5
1035.1 2,029.6
100.0
Table IB: Historic Annual Revenue (based on most recent available annual accounts, where published) Hire Company 1.Speedy Hire 2.HSS Hire
3.TP Hire
4.Brandon Hire
5.Jewson Hire 6.Hire Station
7.A-Plant Tool Hire 8.Hirebase
9.GAP Group Tools
10.Supply UK
TOP TEN TOTAL
72.0 est. 63.1 41.9 40.0 36.0 14.5
914.1
17.0 9.5 4.2 3.8 3.7 3.2 2.4 2.4 2.0 0.8
49.0 51.0
Revenue (£m) % Annual Growth 310.0 est. 181.8 78.6 76.2
+0.0 est +0.9
+19.6 +1.2 +2.9 +4.0
+24.3 +19.4 +20.0 +30.6 +4.4
Table II: Gross Book Value of Hire Equipment Hire Company Gross book Value (£m) % Annual Growth 1.Speedy Hire 2.HSS Hire
3.GAP Group Tools
4.Brandon Hire 5.Hire Station 6.A-Plant Tool
7.Supply UK Hirebase
Jewson Hire TP Hire
376.0 136.5 60.0 58.5 51.0 42.0 9.5
Not available Not available Not available
-2.0
+28.9 +11.1 -3.5
+13.8 +16.7 +8.0 N/A N/A N/A
Table III: Number of Outlets Hire Company No. of outlets +/- Change %Change of year on year +8
1.TP Hire (inc. 119 satellites)342
2.Jewson Hire 3.Speedy Hire 4.HSS
5.Brandon Hire 6.A-Plant Tool 7.Hirebase
8.Hire Station
9.GAP Group
10.Supply UK
TOTAL TOP TEN
281 258 255 150 121 99 95 96 26
1723
+30 -10 +22 -5
+14 +16 +1
+14 +3
+93
+2.4
+12.0 -3.7 +9.4 -3.2
+13.1 +19.3 +1.1
+17.1 +13.0 +5.7
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 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106