France-based Altrad Group has reported record revenues of €3.42 billion in its full-year financial results for the fiscal year ended 31 August 2018.
This compares to a revenue of €2.16 billion in 2017 for the industrial maintenance service provider.
Net profit also grew, from €138 million in 2017 to €201 million in 2018, and the group’s EBITDA (earnings before interest, taxes, depreciation and amortization) increased to €443 million, from €325 million in the previous year.
Altrad is one of ther world’s largest scaffolding providers - it holds scaffolding stock with a replacement value of €1.2 billion - and also manufactures light construction equipment such as concrete mixers and compaction tools.
At the end of August, Altrad’s services order book stood at €2.53 billion. Although this represents a significant decrease from the €3 billion reported in the half-year results, the drop was mainly attributed to the completion of large projects in Australia and major maintenance contracts coming up for renewal in the UK. Large order intakes in the coming year are expected to boost the order book going forwards.
According to Altrad, the positive developments were supported by growth drivers for the company’s core sectors and markets. More than one third of Altrad’s business now takes place outside of Europe, and a little under one third is in the UK.
Altrad’s strong results also follow the successful integration of Cape, which the company acquired in September 2017. The transaction was said to have significantly expanded and diversified Altrad’s service offering.
The firm’s strategic focus on services was said to be guided by its intention to underpin the business with longer-term, lower-risk and higher-visibility revenues associated with multiple-year maintenance contracts. At present, services represents 81% of the business’ overall revenue, with the remaining revenue generated from Altrad’s equipment business, which was said to be performing well. It generated 27% of the group’s EBITDA in 2018.
Altrad’s CEO Louis Huetz said, “These record full-year results reflect the transformative evolution that the group has undertaken in recent years. The strategic rationale to diversify Altrad’s service offering and expand our geographical footprint has provided the group with a significantly stronger and more balanced business.”
Looking ahead, Huetz added, “We are employing strategies to consolidate this position further by leveraging the operating efficiencies and new opportunities that present themselves to us on account of our increasing scale and profile within the industry.”