Altrad aims for €1bn more in 2022
By Belinda Smart20 December 2021
France-based scaffolding and industrial services business Altrad Group said it was targeting an additional €1 billion in revenues in 2022 as it reported “solid” results for the year ended 31 August 2021.
Buoyed by rebounding activity levels and acquisitions, revenue for the period was up 4.2% at €2.69m compared to €2.59m in 2020, while EBITDA profit was up 5.3% at €415m compared to €394m.
President and founder Mohed Altrad said, “Activity levels are rebounding across our markets and sectors, and the Group is uniquely well placed to capitalise on the growth opportunities that lie ahead.
“We have successfully acquired a number of strategically complementary businesses that further diversify and enhance our services and geographic footprint.
“Through a combination of the transactions that have already been announced, and those we hope to convert in the coming year, we believe we can add over €1 billion of revenue in FY22. “
The first half of the fiscal year, September 2020 to Feburary 2021, saw a recovery in operational and financial performance following the impact of Covid-19.
Services, representing 74% of revenue, were stable despite the postponement and deferral of projects. In its results statement released on 16 December, the company said this reflected the resilience of its business model.
Equipment sales, which represent 26% of revenues, delivered a strong performance driven by a rebound in home improvement activity.
Meanwhile the acquisitions of German piping and mechanical maintenance company Kiel Group, UK rental company Actavo and Senegalese oil and gas services company SNKP, completed in the year, added to Altrad’s offering in services and equipment.
In the current fiscal year, Altrad also closed the acquisition of Australian contractor Valmec, rope access and inspection specialist CIDES in Congo and expects to complete the acquisition of industrial maintenance and energy services specialist Endel in France in 2022.
Late 2021 also saw the acquisition of international shoring, formwork and falsework business RMD Kwikform.
The statement confirmed Altrad was benefiting from exposure to diverse sectors, with oil and gas (26%), construction (39%), process industries (24%) and power generation (11%) providing protection from slowdowns in any one sector.
It said, “Based on the order book of the completed and proposed deals, and the organic opportunities across the wider Group, Altrad will deliver a step-change in revenue, adding an additional €1 billion in FY22.”
“On a five-year view, Altrad anticipates adding a further €2 billion of revenue which reflects the magnitude of the Group’s near-term growth potential.
“The health of the business demonstrated in the past year and the improving operating climate provide confidence that the Group is once again entering an exciting period of growth.”