A strong 2018 has been reported by Algeco, with a 12% year-on-year growth in revenues to €954 million.
The modular space specialist, now based in London, UK, said this growth was driven by a 20% increase in the average number of units on rent, reflecting the positive impact of the Touax acquisition at the end of 2017. Utilisation rates remained solid at 81% and revenue per unit from value-added products and services grew by 19% to €63.
Algeco’s underlying EBITDA (earnings before interest, taxes, depreciation and amortization) also saw robust growth, increasing by 26% to €268 million compared to 2017. This was attributed to the company’s European and APAC (Asia Pacific) businesses, as well as the successful integration of Touax.
Net capital expenditure (CapEx) was reduced by €14 million compared to the year before as a result of the improved utilisation of the Touax fleet. The company saw a €13 million reduction in new unit CapEx, while net maintenance CapEx remained relatively flat at €67 million, in line with previous guidance.
Towards the end of 2018, Algeco completed its disposal of Target Lodging for $820 million.
Looking ahead, the company’s CEO Andrew Tyler said, “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.”