Boels set for growth with double-digit results

Netherlands headquartered rental company Boels Rental says its positioned for growth against a strong recovery from the pandemic and market conditions favourable to rental.

The company reported “resilient performance” during the Covid-19 crisis with revenue for 2021 up by 11.3% to €1.3 billion. The increase in sales was primarily the result of recovery from the pandemic in key markets.

An Easy Lift R160 machine in Boels’ fleet. (Photo: Boels.)

EBITDA profits for 2021 increased by 13.2% to €422.2 million in 2021, up from €373.4 million in 2020.

It said the first quarter of 2022 had continued the upward trend, with double-digit growth in all its businesses.

The company’s capital expenditure on fleet during 2021 was €300 million, while the company reduced its net debt position, a statement on its full year results said.

Boels CEO Pierre Boels said; “Boels is an ambitious company. Every five years we want to double in size, and this has been successfully rolled-out in the last four decades.”

The company is set for organic growth and through acquisitions, he said.

Sustainability & digitalisation
“2021 was a year where we kept on investing in sustainability and digitalisation,” the company’s results statement said.

“Boels’ fleet value now exceeds €2.0 billion, with a weighted average fleet age of 55 months, the newest in the market. We invested significantly in low emission equipment.

“By developing new apps and a multichannel commercial approach we are able to optimise management of rental equipment.

Boels Rental battery-powered wheel loaders purchased in 2021 from Tobroco-Giant.

“Commercially, Boels is increasingly operating as a multi-channel organisation, combining the advantages of both digital and physical customer contact,” the report said.

It confirmed that 80% of Boels’ fleet is now powered by electrical energy and is emission free.

Outlook
Jan Piet Valk, CFO said the positive outlook indicated “Boels is ready for of the next growth phase”

“Despite the macro-economic and political uncertainties, we started the year very successfully with very significant (double digit) growth versus last year across all our businesses in the first quarter, both in our revenue and profitability and clearly see an impact of the continued investments in our fleet, our people and in streamlining our operations.

“Total cost of ownership for our customers will again exceed the total cost of rental, meaning that we see favourable market conditions.

“Boels is heading for further growth, both organic and by add-on acquisitions. For instance, at the end of 2021 we acquired Eekels Pompen in the Netherlands, adding high-end pumps to our rental portfolio.”

Other acquisitions include that of Finnish rental company Cramo, completed in 2020.

For 2022 and beyond, “We are ready for the next growth phase,” said Valk.