Brandon Hire enjoys 18% turnover boost

Brandon Hire has reported an 18% increase in turnover to £26.4m (2004: £22.3m) for the six months ending 30 June 2005.

For the same period operating profit declined slightly from £2.5m to £2.3m before intangible asset amortisation of £133,000.

Charles Skinner, Brandon Hire chief executive, said the results were in line with expectations and the dip in operating profit was due strategic investments in new depots.

“Our geographical expansion over the last 18 months has led to a short term drag on profitability,” Skinner said.

“This arises from the time taken for new branches to attain the operating margins of established depots,” he added.

The company also said the tool hire sector was less buoyant during the first six months of the year, with the second half traditionally a stronger period with higher operating margins.        

Skinner said this trend is likely to be reinforced in 2005 as newer branches are becoming profitable and market conditions are likely to be more favourable.

In the last 18 months Brandon Hire has increased its national network from 100 to 140 branches.