Australian tool and equipment hire company National Hire Group delivered a 72.6-percent increase in fiscal first-half profit. National Hire reported net profit of AU $12.6 million (about U.S. $11.4 million) for the six months ended Dec. 31, compared with $7.3 million in the previous corresponding period.
The group said the result was driven by a 24.6-percent increase in revenue from its rental services division, while its smaller capital sales division, which manufacturers and assembles mobile lighting and power generation units, posted a 6.4 percent revenue hike. Tool revenue was AU $164 million, with $130.2 million coming from rental services.
During the period, National Hire partnered with private equity firm The Carlyle Group to acquire Australia’s largest rental company, Coates Hire for about AU $1.5 billion. National Hire plans to combine its rental services division with the assets of Coates Hire to create a new entity called Ned Group.