Australian rental company National Hire Group last week reported a net profit after tax of AU $19.3 million (about U.S. $15.8 million) for the year ended June 30, up 12.9 percent from $17.1 million for the previous corresponding period.
‚ÄúThis is a very pleasing result for National Hire and clearly demonstrates the positive benefits of the growth strategy we have been pursuing for the past three years,‚ÄĚ said executive chairman Ray Romano.
NHG posted revenue of AU $287.9 (about U.S. $236.1 million) for the fiscal year, a 23-percent year-over-year increase. The second-half performance was strong, despite adverse weather conditions on Australia‚Äôs east coast. The company‚Äôs performance was driven by organic growth plus a full 12-month contribution from AH Plant Hire, which NHG acquired last year.
Rental revenue was AU$218.8 million (U.S. $179 million), a 25-percent year-over-year increase. During the year, NHG opened five new branches. The company plans branch openings during fiscal 2008 in Western Australia, Queensland and Victoria.
In April, NHG completed the acquisition of Brisbane-based All Site Rentals, which specializes in rental of site sheds, containers, power poles and portable toilets.
National Hire Group is participating in a confidential due diligence process as a possible acquirer of Australia‚Äôs largest rental company Coates Hire.