GAP Group has finalised its capital expenditure budget for 2015-16 - resulting in an all-time high to be spent on new equipment for delivery in the next 12 months.
With an increase of 25% on last year’s spend, GAP said it will plough £100 million (€140 million) into a raft of new equipment.
GAP Hire Solutions comprises of eight divisions that will each see the allocation of brand new equipment. This includes almost £40 million (€56 million) of unmanned plant such as dumpers, excavators and rollers, £6 million (€8.4 million) on transport and £21 million (€29 million) on tools for a new chain of tool hire depots opening in the London area of the UK.
GAP Welfare Services will benefit from a £15 million (€21 million) injection into new equipment including its popular eco welfare units. GAP Event Services, Lifting Hire & Sales, Non-Mechanical Plant and Survey & Safety Hire will benefit from the other £18 million (€25 million) available.
The company's procurement manager, Ken Stewart, said: “ We have always pledged to invest at least 50% of our annual turnover on new equipment and we have worked closely with our suppliers to ensure equipment is available throughout our depot.
“We’re experiencing continuing high utilisation and it’s imperative that we deliver the right equipment to our customers on site and on time. This record investment will ensure we can continue to do this.”
Earlier this year GAP announced it had secured an Asset Based Lending facility of up to £220 million (€307 million) to support the future growth of the business in the next five years. The funding was provided by a syndicate of banks led by RBS Invoice Finance and including Barclays, PNC Business Credit, part of PNC Financial Services Group and Wells Fargo Capital Finance.