Algeco releases first quarter 2019 Financial Report: Solid revenue and profit performance
- Total revenues increased by 2.8% to €219 million and growth in underlying EBITDA before IFRS 16 of 8.0% to €48 million
- Strong cash generation with 60% cash conversion
- Net leverage ratio of 4.7x on a pro-forma basis with €434 million cash on balance sheet
LONDON (28 May 2019) – Algeco Investments B.V. (together with its subsidiaries, “Algeco” or the “Group”), Europe and Asia Pacific’s leading business services company specialising in modular space, today announced a solid financial performance for the first quarter of 2019.
For the three months to 31 March 2019, the Group delivered total revenues of €219 million, up 2.8% versus the prior year. Modular space leasing revenues were marginally higher with a 6.1% increase in revenue per unit offset by 4.8% fewer units on rent. Revenue per unit growth reflected a 1.9% increase in the average rental rate (ARR) and strong growth of value-added products and services (VAPS) per unit of 17.1%. The average utilisation rate was broadly flat at 79%. Sales of mainly new units increased by 23.6% to €60m.
Underlying EBITDA before IFRS 16 increased by 8.0% to €48 million. Our Europe business delivered EBITDA growth from France and Eastern, Northern and Southern Europe. Cash conversion increased by 7 percentage points to 60% as we continue to be highly disciplined in our approach to capital allocation.
Net leverage at the period end was 4.7x on a pro forma basis which is down from 6.3x at 31 March 2018. A cash position of €434 million on the balance sheet provides for good financial and strategic flexibility.
Andrew Tyler, Algeco Chief Executive Officer, said: “We have delivered a solid performance in the first quarter with continued growth in both revenues and underlying EBITDA. We remain disciplined in our allocation of capital across the group and this resulted in a further improvement in our cash conversion to 60% in the quarter.”
Algeco has posted its first quarter 2019 financial report and slide presentation to accompany the first quarter 2019 financial results conference call (scheduled for Wednesday 29 May 2019 at 3.00pm GMT, 10:00 a.m. Eastern Time) at www.modulairegroup.com/investors/financial-reports.
About Modulaire Group
Modulaire Group is the world’s leading business services company specialising in modular space. We create smart spaces for people to live, work and learn. Our business is designed to help customers find the right space solution, no matter what their requirements. Modulaire Group has operations in 24 countries with approximately 250,000 modular space and portable storage units and 3,400 remote accommodations rooms. The company operates as Algeco in Europe, Elliott in the United Kingdom, BUKO Huisvesting, BUKO Bouw & Winkels and BUKO Bouwsystemen in The Netherlands, Malthus Uniteam and Wexus in Norway, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.
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Investor relations: Phil Vellacott