GAM says ‘model is working’

Spain-based rental company said it has added a second shift at its Reviver equipment refurbishing facility and will double capacity in the coming months.

The plant has now remanufactured 375 machines, said GAM, with almost 70% now rented out on long-term agreements. The plant covers industrial forklifts as well as construction machines.

The update on Reviver came as GAM posted third quarter results showing revenue for the nine months up 6% to €233.4 million, with net profits almost doubling to €5.1 million. EBITDA grew by 10% to €64.8 million.

Long-term rentals – including industrial forklift rentals – grew by 11% year-on-year, equipment sales and after-sales rose 7%, and equipment rental and services were up 2%.

Regional performances

Sales in Spain and Portugal grew by 9%, while revenues from Latin America were down 9%, partially offset by an improvement in margins and a recovery reported by GAM in the third quarter. There was a 21% increase in sales in Morocco and Saudi Arabia.

Long-term rentals now represents 28% of total revenue and GAM said this shift in its model – “towards stable and less investment-intensive” operations – allowed it to improve efficiency and reduce its capital expenditure.

Antonio Trelles, GAM’s financial director, said; “These first nine months confirm that our model works: we are growing in revenue, improving margins, and needing less investment to generate more profit.

“The greater weight of recurring business and less capital-intensive activities gives us more stability and puts us in a good position to continue growing profitably in the coming years.”

GAM said the Reviver facility was also helping its sustainability strategy. More than 85% of its rental fleet is now zero-emission.