New Zealand’s leader in equipment rental, HireQuip, has more than doubled its trading profit (EBITDA) since the low point of the global financial crisis (GFC) and construction slowdown, growing at an annual compound growth rate of 39 percent, the company said.
Tasman Capital Partners managing director and HireQuip director Rob Nichols said that in March 2012 HireQuip’s trading profit exceeded NZ$20 million (about U.S. $15.9 million) for the first time in three years.
“As the GFC dawned and demand plummeted HireQuip implemented a comprehensive business improvement plan to fortify itself against the recession,” Nichols said. “This plan was implemented in order to survive the recession, lift customer satisfaction and position HireQuip for long-term growth.”
This strategy included branch consolidation, overhead reductions, strengthened sales presence, investment in rental fleet and transport capability.
“Key to HireQuip’s operational and financial turnaround has been honest communication with HireQuip’s key stakeholders, customers, staff, suppliers and financiers,” Nichols said.
“By working closely with our staff and suppliers we delivered on the commitment to provide ‘best in class’ hire equipment, service, and tangible value to customers,” said HireQuip CEO Brian Stephen. “Special mention should also be made of our landlords who stepped up when asked to support HireQuip. Through our close relationship with equipment suppliers we remained market leaders by continually reinvesting in our fleet to a level that ensures we provide customers with quality equipment every time.”
Nichols added: “It is important to mention that, without the support of our bank through one of New Zealand’s bleakest periods, many of HireQuip’s staff would have lost their jobs, which could have been catastrophic for their families and local communities. “With construction activity forecast to accelerate, acquisitions are back on HireQuip’s agenda. HireQuip is well positioned to acquire competitors who have struggled in a contracting market. We will expand our product range in high-demand niches.”
Stephen added that after surviving the recession, the company is in a growth phase, and opened a new branch last month in Christchurch, its first new branch since 2006.
HireQuip has 34 branches across New Zealand. HireQuip Group is owned by HireQuip management and Tasman Capital Partners (NZ) Limited. HireQuip says it has an estimated 21-percent share of the New Zealand equipment rental market. The company posted more than NZ $50 million in rental revenue in 2011.