Good news at Crestchic and on refinancing
The trading update from Northbridge ahead of its AGM was positive, with activity levels within the core Crestchic loadbank division markedly higher YoY. Good order visibility into Q3 underlines their confidence in the outlook. The timetable to dispose of Tasman at a sensible price remains intact whilst work is expected to commence on the extension of manufacturing in Burton-on-Trent during Q3, adding 50% to capacity.Crestchic continues to build momentum, reflecting record orders, a return of oil & gas/marine activity in the Far East and continuing strength of the datacentre, renewable energy and grid resilience markets in Europe, the US, and the Middle East. Trading remains comfortably ahead YoY and Crestchic’s performance YTD underlines the reasons for the additional manufacturing facility.
Tasman continues to suffer from a strong pre-COVID Q1 comparative in 2020, although current activity levels demonstrate early signs of improvement. The timetable to dispose of Tasman remains intact, albeit should acceptable bids fail to emerge, the alternative plan involves targeting margin improvements.
Despite global economic recovery is building nicely, we are not yet changing revenue and EBIT projections, although the restructuring of the balance sheet and conversion/settlement of the loan notes reduces net interest. On this basis, we have increased our adj. EPS projections by 5.6%
As loadbank markets continue to recover/improve and expansion of manufacturing capacity leads to an accelerated expansion in the hire fleet, we see profitability rising disproportionately to revenue growth. Even on conservative estimates, the shares remain clearly undervalued versus peers.
Herc Holdings is an equipment rental supplier. The company conducts its operations through subsidiaries, including Herc Rentals Inc. Operations are conducted under the Herc Rentals brand in the U.S. and Canada and under the Hertz Equipment Rental brand in other international locations. The company sells used equipment and contractor supplies such as construction consumables, tools, small equipment and safety supplies; provides repair, maintenance and equipment management services and safety training to certain of its customers; provides equipment re-rental services and provides on-site support to its customers; and provides ancillary services such as equipment transport, cleaning, refueling and labor.
HSS Hire Group is engaged in providing tool and equipment hire and related services. Co. operates in two business segment; the Rental and related revenue segment comprises the rental income earned from owned tools and equipment, together with related revenue such as resale, transport and other ancillary revenues; and the Services segment comprises Co.'s rehire business (HSS OneCall), HSS Training and TecServ. The HSS OneCall provides customers with a single point of contact for the hire of products that are obtained from approved third party partners; the HSS Training provides customers with specialist safety training; and the TecServ provides customers with maintenance services.
Northbridge Industrial Services is engaged in the sales and hire of industrial equipment on a global basis for use in applications in the oil and gas, shipping, construction, and power and utility sectors. Co. has two main reportable segments: Crestchic loadbanks and transformers, which is involved in the manufacture, hire and sale of loadbanks and transformers; and Tasman oil tools and loadcells, which is involved in the hire and sale of oil tools and loadcells.
United Rentals is an equipment rental company that operates throughout the United States and Canada, and Europe. The company's general rentals segment includes the rental of construction, aerial and industrial equipment, general tools and light equipment, and related services and activities. This segment's customers include construction and industrial companies, manufacturers, utilities, municipalities and homeowners. The company's trench, power and fluid solutions segment includes the rental of construction products and related services. This segment consist of: Trench Safety region, Power and Heating, Ventilating and Air Conditioning region; and Fluid Solutions and Fluid Solutions Europe regions.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.