12.08.2021 – 09:01
Modulaire Group releases second quarter 2021 Financial Report
- Focus on execution of strategy continues to drive strong growth
- Organic EBITDA increased 22%; including acquisitions EBITDA grew 35% to EUR113m
- Total revenues increased by 24% to EUR347m including acquisitions
- Continued strong liquidity and cash generation with 84% year-to-date cash conversion before growth capex and non-fleet capex
Modulaire Group (together with its subsidiaries, the "Group"), Europe and Asia Pacific's leading business services company specialising in modular services and infrastructure, is pleased to announce another strong performance for the second quarter of 2021.
For the three months to 30 June 2021, the Group delivered total revenues of EUR347 million, up 24% versus the prior year including acquisitions. Prior to acquisitions, total revenue grew by 15% driven by growth in both modular space leasing and sales.
Utilisation rose to 87% at the end of the second quarter (83%: Q2, 2020) while units on rent increased by 12% (up 25,400 to 233,000). Units on Rent increased by 12,800 excluding acquisitions. Organic revenue per unit grew by 10%, and by 15% including acquisitions.
Organic EBTIDA increased 22% driven by continued progress against the Group's strategic objectives. Including M&A, EBITDA grew 35% to EUR113 million, as the integration of recent acquisitions continues to progress well. Cash conversion remained strong at 84% before growth and non-fleet capex.
Net leverage reduced to c. 4.5 times Pro-Forma Underlying EBITDA, down from 5.2 times at the end of the second quarter of 2020. The liquidity position remains strong with EUR193 million of cash on the balance sheet at 30 June 2021, alongside EUR100 million of bank availability and EUR76 million ABL availability.
The Group continues to have positive momentum across its four strategic objectives through granular management of branch level performance to optimise volume and margin, an efficient cost base, effective capital investment and a targeted acquisition strategy.
On June 27, Modulaire announced that its shareholders have entered into an agreement to sell the Group to investment funds managed by Brookfield Business Partners L.P. The transaction, which is subject to customary regulatory and competition clearances, is expected to close in Q4 2021.
Mark Higson, Modulaire Group's Chief Executive: "Executing against our strategy continues to drive our strong operational and financial performance. Excluding M&A, organic EBITDA grew by 22% in the quarter and revenue per unit grew 10%.
Our data-led commercial and operational focus combined with the stimulus packages announced by Governments in our key markets, means that we are well placed for the future. We have a strong pipeline of M&A and, with a healthy balance sheet and proven ability to execute are well positioned to capitalise on these opportunities.
Finally, I'm delighted to welcome Brookfield as a new investor in the business. We are all hugely excited about driving Modulaire's continued growth and we look forward to the opportunities ahead."
About Modulaire Group
Modulaire Group is a leader in European modular services and infrastructure. We create smart spaces for people to live, work and learn. Our business is designed to help customers find the right space solution, no matter what their requirements. Modulaire Group has operations in 25 countries with approximately 267,000 modular space and portable storage units and 3,400 remote accommodations rooms. The company operates as Algeco in Europe and Scandinavia, Elliott, Advanté, Carter and ProComm in the United Kingdom, BUKO Huisvesting, BUKO Bouw & Winkels and BUKO Bouwsystemen in The Netherlands, Tecnifor and Locabox in Italy, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.
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