Despite the early headwinds of the Covid-19 pandemic, Algeco has reported a ’resilient performance‘ in the first quarter of 2020.
Mark Higson, CEO of the UK based modular space rental specialist, said, “Algeco delivered a robust first quarter for 2020 with underlying growth amidst the start of the Covid-19 crisis.”
Total revenues for the first three months of the year grew by 14.7% compared to the same period in the previous year, reaching €252 million.
However, this includes mergers and acquisitions. Without mergers and acquisitions, total revenue decreased by 3.8% – a fall attributed to Covid-19 related new unit sales delays at the end of March.
Leasing and services revenue before mergers and acquisitions was flat compared to the first quarter of 2019, with revenue per unit growth of 6.4% offset by 3% fewer average units on rent. The average utilisation rate also remained flat at 79%, while unit sales grew by 18.1%.
Underlying EBITDA (earnings before interest, taxed, depreciation and amortisation) increased by 19%, or €11 million, including €9 million from acquisitions.
Higson said, “Our strategy continues to progress well and we remain confident that, supported by the resilient nature of our business, we will continue to deliver value for our customers, attractive returns to investors and opportunities for our people as we emerge from Covid-19.”
Algeco ranked 10th in this year’s IRN100 listing of the world’s largest rental companies, having achieved 2019 revenues of €974 million. The listing will be published in the June issue of IRN.