Report reflects changing face of plant hire sector

Plant Hire Investment Report shows the effect of acquisitions among plant hire's big hitters.

The latest Plant Hire Investment Report has highlighted the level of consolidation among major plant hirers, with 21 acquisitions during 2005/2006. However, there is no change in the four largest mobile plant fleets: Ashtead Group, Aggreko, Hewden and Balfour Beatty.

The report, produced by Catherine Stratton, mainly concentrates on the top 75 plant hire firms. It showed Speedy Hire's fleet had grown by almost 28% to £340m - putting it in fifth place above Lavendon - before its purchase of LCH.

SGM Finance grew its fleet by almost 64% and Panther Platform's expansion was marginally lower at 60%, while Brandon had grown 50% before its take-over by Wolseley. Just 13 of the top 75 plant-owning firms decreased their machinery holding, with Skanska slashing its fleet by more than 60% to £47.2m and Andrew Sykes cutting 23% to £25.7m.

In terms of hire turnover, the top nine remained unchanged: Ashtead Group, Aggreko, Hewden, Speedy, HSS, Lavendon, Vp, Ainscough and Hydrex, with Brandon now in 10th. The fastest-growing were The Platform Company (+91.3%) and SGM Finance (+67%).

The Platform Company recorded the highest rise in trading profit (+185%) to more than £7.4m, with LCH recording an 180% jump before the Speedy takeover. However, trading profit at BHP almost halved to £1.25m.

Copies of the Plant Hire Investment Report cost £349. For more details, contact 01249 700778.

[Contract Journal, 26 July 2006, p. 17]