Coates Hire working through crisis
By Murray Pollok08 April 2020
Coates Hire’s events-related business has halted due to the COVID-19 outbreak but general rental operations are continuing, said owner Seven Group Holdings (SGH) on 8 April.
In its trading update, in which it withdrew its market guidance for the current financial year, SGH said Coates Hire’s revenues for the year-to-date were up 3% on the prior period and down 1% on budget, and was performing ”broadly to expectations”.
It said both Coates Hire and its Caterpillar dealership WesTrac were continuing to provide essential services to the construction and natural resources sectors, as well as State governments.
Ryan Stokes, Managing Director and CEO of SGH said: “Like most Australian businesses SGH will be impacted by the consequences of the significant escalation of the measures taken by Governments to slow the rate of COVID-19 infection. Importantly, we have actions in place across all our businesses to protect our people at this time.
“To date, COVID-19 has had limited impact on WesTrac, where mining and construction activities have, at this stage, been largely unaffected with year-to-date revenue up 15% cent on prior period and 5% on budget.
“Coates Hire’s general hire operations continue to perform broadly to expectations, however, events revenue has been curtailed. Coates Hire’s year-to-date revenue is up 3% on prior period and down 1% on budget.”
SGH said it was in a strong cash position, with A$803 million of undrawn facilities and cash, of which A$430 million is committed.