Algeco releases third quarter 2019 financial report - Continued resilient performance
- 3% growth in Total Revenues of €260 million
- Underlying EBITDA before IFRS 16 3% lower at €67 million
- Strong cash generation with 53% year-to-date cash conversion
LONDON (26 November 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 continued resilient financial performance for the third quarter of 2019.
For the three months to 30 September 2019, the Group delivered total revenues of €260 million, 3.2% higher versus the prior year. Modular space leasing revenues were marginally lower with a 5.5% increase in revenue per unit offset by 6.2% fewer units on rent. Revenue per unit growth reflected a 1% increase in the average rental rate (ARR) and strong growth of value-added products and services (VAPS) at 16%. The average utilisation rate was 79%. New unit sales grew by 27% as a result of strong performances in France, ENSE and APAC.
Underlying EBITDA before IFRS 16 was 2.9% lower at €67 million primarily as a result of the non-recurrence of a large, high margin, used unit sale in the corresponding period last year. Cash conversion year-to-date increased by 1 percentage point to 53%.
Net leverage at the period end was 5.5x, in line with 5.6x at 30 September 2018. Our cash position remains strong with €275 million on the balance sheet.
Sunny Thakrar, Algeco’s Chief Financial Officer, said: “We have delivered a solid performance in the third quarter with EBITDA growth in France and ENSE offset by weakness in the UK. We have clear priorities for driving profitability across the Group and will continue to balance cash conversion with investing in the business. We were delighted to complete the acquisition of Buko after the period-end, and our disciplined approach to M&A will remain a core component of our growth strategy.”
Algeco has posted its third quarter 2019 financial report and slide presentation to accompany the third quarter 2019 financial results conference call (scheduled for Tuesday 26 November 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