• Total revenues increased by 12% to €954 million
• Growth in underlying EBITDA of 26%, reflecting strong operating leverage and synergies
• Net leverage ratio decreased from 5.3x to 4.5x on a pro-forma basis after the $820 million (€730 million) sale of Target Lodging

LONDON (25 April 2019) – Algeco Investments B.V. (together with its subsidiaries, “Algeco” or the “Group”), the world’s leading business services company specialising in modular space, today announced a strong set of financial results for 2018.

For the 12 months to 31 December 2018, the Group delivered total revenues of €954 million, up 12% versus the prior year. Revenue growth was driven by a 20% increase in the average number of units on rent which reflects the positive impact of the Touax acquisition at the end of 2017. Group utilisation rates remained solid at 81% and, encouragingly, revenue per unit from value-added products and services (VAPS) grew by 19% to €63.

Underlying EBITDA increased by 26% to €268 million with positive contributions from both our European and APAC businesses. Cash conversion increased by 22 percentage points to 53%, driven by the strong growth in EBITDA and a reduction of €14 million in net capex from improving the utilisation of the Touax fleet.

Following the period end, Algeco completed its disposal of Target Lodging for an aggregate consideration of $820 million which comprised $563 million of cash and $257 million of shares of common stock in Target Hospitality Corp. As a result, Algeco’s net leverage decreased from 5.3x to 4.5x on a pro forma basis.

Andrew Tyler, Algeco Chief Executive Officer, said: “Algeco achieved a strong performance in 2018 with solid revenue growth and a significant improvement in our profitability. Algeco is well placed to benefit from some of the emerging trends encouraging global development and infrastructure investment, demographic change, workforce welfare and sustainability. I am confident that our refreshed strategy will enable us to deliver meaningful performance improvement in the future.”

Notes

Algeco has posted its fourth quarter 2018 financial report and slide presentation to accompany the fourth quarter 2018 financial results conference call (scheduled for Thursday 25 April 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.

For further information

Investor relations: Phil Vellacott
investorrelations@modulairegroup.com
07841 563541