Coates targets Australia’s A$1.1 trillion investment
20 February 2023
Australia’s largest rental company, Coates, said it was positioned to capitalise on the A$1.1 trillion of investment in construction and infrastructure over the next five years.
Coates owner, Seven Group Holidays, said the rental business was seeing strong demand on the East Coast for work on infrastructure projects, with average time utilisation above 60% and in some markets higher than 65%.
Ryan Stokes, Managing Director and CEO of Seven Group, said; “The growth in infrastructure and construction activity, coupled with the outlook for resources, supports our confidence in the opportunity for our Industrial Services businesses [which include Coates and Caterpillar dealer WesTrac].”
Coates reported an average asset utilisation of 61.7% for the six months to 31 December 2022, with some markets over 65%. Coates revenues for the first half year were up 16% to A$575 million, with pre-tax profits 25% higher at A$149 million.
The company said Coates was continuing in its strategy to create a hub and spoke depot network, adding that it had already delivered a “service uplift through asset positioning and decision making”.
It also continues to expand its engineering solutions division as well as specialised equipment, including the recently created Power & HVAC operation.
At Cat dealer WesTrac, revenues were up 20% to A$2.3 billion, with machine sales 33% higher, driven by strong activity in mining and construction. Seven Group said supply chain issues were easing, but supply was still lagging demand growth.