Algeco remains resilient

UK-based modular space specialist Algeco has reported growth for the full year in 2019, and has expressed confidence that it can weather the coronavirus crisis.

The company’s CEO Mark Higson said, “In the current unprecedented circumstances we are focused on the safety of our people, cash management and liquidity whilst playing an important role for our customers in the efforts against Covid-19.

“Our business is resilient and we are confident that we will continue to deliver value for customers, returns to investors and opportunities for our people.”

Compared to the previous year, Algeco saw its total revenues grow by 2.2% to €975 million in 2019.

Modular space rental revenues grew, with a 5.4% increase in revenue per unit more than offsetting a 4.8% drop in the number of units rented.

The average utilisation rate was 79%, and new unit sales grew by 16%.

Algeco’s full-year underlying EBITDA (earnings before interest, taxes, depreciation and amortization) was €2 million below the previous year, at €266 million.

The company’s cash position was said to remain strong, with €199 million on the balance sheet at the end of 2019.

Higson said, “We are pleased that our new strategy is starting to deliver further value as demonstrated in Q4 with the acquisition of BUKO. This has continued into FY20 with units on rent growth and three more acquisitions.”

Algeco bought Spanish business Alquibalat (Balat) in December 2019, French company Altempo in January 2020, and Australia-based Net Modular in February 2020.