Canadian rental and software company Noble Iron reported first quarter revenues of CA$6.5 million (€4.5 million), up 15% year-on-year.
It said this was thanks primarily to the strengthening of the US dollar against the Canadian dollar, together with an increase in equipment rental and distribution revenues of CA$0.2 million (€0.14 million).
However, Noble Iron said it produced a net loss of CA$3.1 million (€2.1 million) for the three months to the end of March, compared to the net loss of CA$2.7 million (€1.9 million) it reported for the first quarter of 2015.
The company said higher expenses fuelled the loss, thanks to increases in rental activities, the strengthening of the US dollar versus the Canadian dollar, hiring and expansion of the company’s core team, and increased investment in technology and process development.
Noble Iron is headquartered in Canada but serves customers in California and Texas, US. It offers construction and industrial equipment and accessories for rent and for sale, and is an exclusive distributor of LiuGong Construction Machinery earth moving equipment and Allied Construction Products in Southeast Texas.
Noble Iron’s software division operates under the name Texada Software, offering in-the-cloud or client-based software for equipment rental companies, equipment dealerships, construction companies, contractors, and customers who own or use construction or industrial equipment.
The company said its operation in Texas had not been directly impacted by the continued weakness in the energy sector as it is not engaged in the rental of specific oil and gas equipment. However, it said that the delayed recovery in the energy sector may cause general weakness in local construction trends which could negatively impact equipment rental demand in the area.