Loxam 2011 revenues up 14.8% but more cautious for 2012

By Murray Pollok13 March 2012

Loxam's recovery continued in 2011 with revenues increasing by 14.8% to €806.7 million and EBITDA profits rising 13% to €264.9 million.

While the figures show that Loxam continues to bounce back from the difficult years in 2009 and 2010, the company is being much more cautious for this year, estimating growth of just 3%.

The company no longer publishes its net profit figures, but Patrick Rizzo, Loxam's marketing director, told IRN that 2011 net profits were "better" than the €27.3 million reported for 2010.

Like-for-like revenue growth is around 12% when adjusted for last summer's Locarest acquisition. Locarest's revenues were integrated with Loxam from September last year.

Mr Rizzo said last year's results had been better than expected, but that Loxam was being more cautious in its expectations for this year because of the lack of visibility on construction activity in Europe for the second half of the year.

The 2011 results, released at a press conference in Paris on 13 March, show revenues getting close to the peak of €847.7 million in 2008 following depressed sales of around €700 million in both 2009 and 2010.

Pro-forma revenues for the year - including full-year contributions from acquisitions made during the year - were €840 million. This year's estimated 3% growth would see 2011 revenues increase to around €860 million.

Sales inside France last year, which represent 85% of the total, were up 15% including the impact of Locarest, while sales outside France rose by 15.5% to €121.1 million.

The figures for 2011 also show that the company continued to increase its fleet investment, spending €175.6 million last year, a 66.4% increase over 2010 and the highest since the peak years of 2007 and 2008 when it invested €245.1 million and €213.7 million, respectively.

Mr Rizzo said investment would be at a similar level this year, which Loxam sees as a "reasonable level" given the turnover (CapEx will represent around 20% of total revenues.)

This year's investment will be allocated for both fleet replacement and spending on new product areas. These new areas include small tools and equipment in support of its recently announced Loxam City initiative, and investment in material/personnel hoists and suspended access products for its Lahotec specialist access division.

Since the end of 2010 Loxam has added around 10% to its staffing and now employs 4300 people. Its depot network has grown by 81 locations over the 12 months to 607, although again that includes the acquisition of Locarest, which added more than 60 locations in France.

Loxam appears to be gaining market share in France, even after accounting for the acquisition of Locarest. Its like-for-like growth of 12% compares to average European growth figure of 5% for Europe estimated by the European Rental Association (ERA). The ERA said that France's rental sector was not one of the best performers in 2011.

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