• Total revenues of €226 million and growth in underlying EBITDA before IFRS 16 of 4.5% to €55 million
• Strong cash generation with 52% cash conversion

LONDON (21 August 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 resilient financial performance for the second quarter of 2019.

For the three months to 30 June 2019, the Group delivered total revenues of €226 million, 5.2% lower versus the prior year. Modular space leasing revenues were marginally lower with a 4.0% increase in revenue per unit offset by 5.7% fewer units on rent. Revenue per unit growth reflected a 1.8% increase in the average rental rate (ARR) and 9.2% growth of value-added products and services (VAPS). The average utilisation rate remained broadly flat at 80%. New unit sales were below last year principally due to the timing of projects; for the first half, sales are in line with 2018.

The Group demonstrated its resilience with underlying EBITDA before IFRS 16 increasing by 4.5% to €55 million. EBITDA margin increased by two percentage points as a result of higher average prices, improved VAPS penetration and strict cost control. Cash conversion year-to-date increased by 2 percentage points to 52%.

Net leverage at the period end was 4.6x, down from 6.2x at 30 June 2018. Our cash position remains strong with €460 million on the balance sheet.

Andrew Tyler, Algeco’s Chief Executive Officer, said: “We have delivered a resilient performance in the second quarter with growth in underlying EBITDA and continued strong cash conversion despite challenging market conditions. We will remain focused on margin, cash flow and a disciplined approach to capital allocation as we continue to execute against our strategy.”

Notes

Algeco has posted its second quarter 2019 financial report and slide presentation to accompany the second quarter 2019 financial results conference call (scheduled for Thursday 22 August 2019 at 3.00pm BST, 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