Coates posts double digit profit growth for 2023

Photo: Coates

Coates Hire has reported a 22% increase in EBIT profits to A$300 million (€177 million) for the 2023 financial year, with revenues increasing by 13% and surpassing A$1 billion (€590 million).

According to its owner Seven Group Holdings, the growth across all regions was aided by strength in the traditional hire and solutions businesses and an increase in customer activity.

In particular, the company attributed the growth to its work with customers that are supporting the five-year $1.2 trillion (€708 billion) infrastructure and construction project pipeline in Australia.

Elsewhere, the company said that its expanded offerings in its solutions segment, which comprises engineering, industrial and power & HVAC solutions, is now a “material contributor to the Coates result.”

Coates also revealed that despite supply chain constraints impacting its fleet investment target, it grew its hire fleet by A$70 million (€41 million) over the year to A$1.8 billion (€1 billion) and predicts this to grow to A$1.9 billion (€1.1 billion) in the next financial year. 

On its sustainability goals, Coates says it grew its Greener Choices fleet, which now accounts for 7% of its total fleet, by 18% (to A$132 million) and expects this to grow by A$20 million (€11 million) in the next financial year.

Looking ahead, the company says it remains “well placed to capitalise on the increasing renewables infrastructure pipeline”, with Ryan Stokes, managing director and CEO of Seven stating that the pipeline and improving asset utilisation is predicted to drive earnings growth in the future.

Stokes said, “The business is effectively capitalising on customer activity to support the delivery of the $1.2 trillion five-year infrastructure and construction pipeline. Coates has been focused on supporting our customers as well as driving internal improvement through targeted productivity initiatives such as network and R&M optimisation.

“The execution of these initiatives saw Coates grow its EBIT margins for the 7th consecutive year to 26.3%.”