GAM to open up in Mexico and Brazil
By Murray Pollok03 September 2008
GAM said the intention in these new markets was to "position the company as the rental market leader, supported by the infrastructure plans forecasted, the strong and strategic presence in those countries of the major Spanish construction companies - where GAM has good relationships - as well as the commercial ability and service that characterise GAM."
The company's international business still represents under 5% of total turnover - €9 million out of €187.9 million for the first half of the year - but sales have more than doubled over the past year. GAM said revenues would grow as the company accelerated the expansion of its eastern European businesses, with new depots planned.
GAM is still managing to grow despite the severe downturn in parts of Spain's building and construction market, particularly the residential sector. Sales of €187.8 million for the first six months of this year were up 48% on the same period last year, and still up 19% on a proforma basis (taking into account GAM's acquisitions during the period).
Profits before interest, tax, depreciation and amortization (EBITDA) was €80.8 million for the first half year, 51% higher than in the same period in 2007.
Around 45.4% of GAM's turnover is in infrastructure/civil works, and a third of turnover is in non-construction areas such as industry, energy, wind farms, railways, ports and tool hire. The residential market represents 6% of GAM's turnover.
GAM said; "Rental in non construction is considered to be a better business than rental in construction, [because it] still has a low rental penetration rate and lack of [competitors]. GAM is building up its position in these markets using the local presence provided by its more than 100 depots throughout Spain".