- Organic EBITDA increased 10% (€6m); including acquisitions EBITDA grew 32% to €84m
- Total Revenues increased by 23.5% to €279m (including acquisitions)
- Continued strong liquidity and cash generation with 84% year to date cash conversion before growth capex and 59% after growth capex
LONDON (13 August 2020) – 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 strong performance for the second quarter of 2020.
For the three months to 30 June 2020, the Group delivered total revenues of €279 million, up 23.5% versus the prior year including acquisitions. Prior to acquisitions, total revenue grew by €2m (1.1%) driven by 15% growth in modular space leasing, offset by lower delivery and installation income as a result of Covid‐19 restrictions.
Utilisation rose to 83% at the end of the second quarter while units on rent increased by 4,200 in the quarter excluding acquisitions. Average Units on Rent were 9.3% higher including acquisitions. Organic EBITDA increased 10% (€6m) driven by continued progress against Algeco’s strategic objectives. Including M&A EBITDA grew 32% to €84m, as the integration of recent acquisitions continues to progress well. Cash conversion remained strong at 59% in the year to date and 84% before growth capex.
Net leverage at the period end was 5.2x on a pro forma basis. The liquidity position remains strong with €207 million of cash on the balance sheet at 30 June alongside €74m ABL availability and a further €103m held outside the Restricted Group.
Mark Higson, Algeco’s Chief Executive Officer, said: “Algeco delivered a strong second quarter for 2020, despite tough market conditions. Progress made against our strategy continues to drive value for all of our stakeholders, as we delivered an increase in organic EBITDA of 10% and total revenue up 23.5% in the period. We were delighted to add to our presence in the Nordics by welcoming Wexus into the business in the second quarter, and we maintain an active pipeline of future M&A opportunities supporting our potential for further growth.”
Algeco has posted its second quarter 2020 financial report and slide presentation to accompany the second quarter 2020 financial results conference call (scheduled for Thursday 13 August 2020 at 3.00pm BST, 10.00am Eastern Time) at www.modulairegroup.com/investors/financial-reports that includes a password-protection feature. Access will be granted to existing and prospective lenders and noteholders and certain other eligible parties (including securities analysts and rating agencies) who have registered for an account. Algeco invites all interested parties to register at their earliest convenience by visiting www.modulairegroup.com/investors/apply.
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
0207 353 4200