Lifting hits Hewden profits

Hewden Stuart has reported turnover up and profits down for the year ended 31 January 2000. Turnover was up 6.5% to £256m from £240.4m last year.

However, profit before tax slid down 3.1% from last year's £41.8m to this year's £40.5m. Dividend is up by 8.9% to 4.3p per share.

Sir John Robb, Hewden Stuart chairman said: "In a challenging year, record profits have been achieved in both general hire and tower cranes, but these were offset by disappointing results from powered access and mobile crane hire.

"Tool hire maintained the previous year's level of profitability despite extensive restructuring costs. The pattern of trading reflected in the results has continued in the first two months of this year. But we have taken firm action to reduce our cost base and this should enable us to report an improved performance in the current year."

Hewden has also withdrawn from the specialist rail hire sector established in 1997 with Hewden Rail Services because: "Initial trading has not met our profit objective. However Hewden Stewart remains closely involved with many rail customers via major projects like Channel Tunnel Rail Link (CTRL) and other Group operations."

General hire turnover grew by some 12% to £112.7m and operating profit by £1.1m to £19.1m. Tool hire profits although 'flat' reflected the restructuring costs borne in 1999. However, 'Lifting' turnover and profits both declined. The former from £63.1m to £60m and the latter from £14.5m to £10.6m.

The crane fleet size has now been "contained and reconfigured to promote modern technology and greater efficiency."

Overall H-S spent £102.8m on new assets including £85.4 m on new kit for rent compared with last year's £65.5m.

The Tool Hire Division intends to open a further 10 'greenfield' site in southern England this year.

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