Australia’s largest rental company Coates Hire has reported a 20% rise in EBIT profits to A$101.9 million for the six months to 31 December, with revenues up 3% to A$492.6 million.
Revenues increased in all of the company’s territories, with the exception of Queensland. The company said there was a large pipeline of infrastructure planned in the country, but delays and poor weather have had an adverse impact on market conditions.
Coates Hire is fully owned by Seven Group Holdings (SGH) following its buyout from private equity group Carlyle in September 2017.
SGH Group Managing Director and CEO, Ryan Stokes, said Coates scale gave it a comparative advantage in the market, but that “the overall market appears subdued due to project transition delays and unseasonal weather.
“The east coast continues to perform, although Queensland has slowed, Victoria remains strong and WA is showing signs of growth….Coates has increased market share and will continue to utilise its scale, together with specific actions, including digitisation to maintain and grow market share in the second half.”