Algeco Releases Second Quarter 2019 Financial Report

LONDON, Aug. 21, 2019 /PRNewswire/ -- Algeco Investments B.V. (together with its subsidiaries, "Algeco" or the "Group"), Europe and Asia Pacific's leading business services company specialising in modular space, today announced a resilient financial performance for the second quarter of 2019.

For the three months to 30 June 2019, the Group delivered total revenues of ?226 million, 5.2% lower versus the prior year. Modular space leasing revenues were marginally lower with a 4.0% increase in revenue per unit offset by 5.7% fewer units on rent. Revenue per unit growth reflected a 1.8% increase in the average rental rate (ARR) and 9.2% growth of value-added products and services (VAPS). The average utilisation rate remained broadly flat at 80%. New unit sales were below last year principally due to the timing of projects; for the first half, sales are in line with 2018.

The Group demonstrated its resilience with underlying EBITDA before IFRS 16 increasing by 4.5% to ?55 million. EBITDA margin increased by two percentage points as a result of higher average prices, improved VAPS penetration and strict cost control. Cash conversion year-to-date increased by 2 percentage points to 52%.   

Net leverage at the period end was 4.6x, down from 6.2x at 30 June 2018. Our cash position remains strong with ?460 million on the balance sheet.   

Andrew Tyler, Algeco's Chief Executive Officer, said: "We have delivered a resilient performance in the second quarter with growth in underlying EBITDA and continued strong cash conversion despite challenging market conditions. We will remain focused on margin, cash flow and a disciplined approach to capital allocation as we continue to execute against our strategy."

Notes:

Algeco has posted its second quarter 2019 financial report and slide presentation to accompany the second quarter 2019 financial results conference call (scheduled for Thursday 22 August 2019 at 3.00pm BST, 10:00 a.m. Eastern Time) at https://www.algeco.com/investors.html.

About Algeco

Algeco is Europe and Asia Pacific's leading business services company specialising in modular space.

We create smart spaces for people to live, work and learn.

We deliver for our customers, wherever, whatever and whenever the need. We are:

• Available: wherever the project, big or small, we can deliver anywhere. 
• Adaptable: whatever the customers need ? space, furniture, equipment, connectivity ? we provide turnkey solutions. 
• Reliable: whenever we are required we have the expertise to get it right first time.

Headquartered in London, Algeco has operations in 22 countries with approximately 240,000 modular space and portable storage units and 3,400 remote accommodation rooms. The company operates as Algeco in Europe, Elliott in the United Kingdom, Ausco in Australia, Portacom in New Zealand and Algeco Chengdong in China.

SOURCE Algeco Investments B.V.