GAM positive amid ‘complex and uncertain situation’
By Murray Pollok05 August 2022
Spanish rental company GAM has posted positive half year results and provided details of an investment by finance company De Lage Landen (DLL) in its ‘last mile’ logistics firm Inquieto.
Revenues in the first six months of the year were up 39% year-on-year to €107.4 million, with net profits of €2.4 million compared to a €0.8 million loss in the same period of 2021. EBITDA profits were up 52% to €27.5 million.
GAM said DLL, which is part of Rabobank, has taken a 20% stake in its Inquieto subsidiary.
Inquieto owns 1500 electric vehicles in Spain and Portugal which are used for short distance delivery of packages in urban centres, with customers in healthcare, food, hospitality and industry, including companies like Uber and San Miguel.
Pedro Luis Fernández, CEO of both GAM and Inquieto, said the investment was great news for the company and for the wider business of emissions-free deliveries; “Having an ally with the stature of DLL focused on sustainability represents a contribution that goes far beyond the addition of new capital: it is an [enormous benefit].”
On its first half financials, GAM reported a 35% increase in revenues for short-term rentals, up to €40.8 million, while its long-term contracts saw a 61% rise to €23.2 million. Services such as training, maintenance and new and used equipment sales, generated revenues of €40.8 million, an increase of 32%.
GAM said supply chain difficulties were still being experienced by the business and that such constraints were likely to continue into the rest of the year.
Fernández said; “In a complex environment marked by inflationary tensions, cost increases and problems in the supply chain, the company achieved high growth in all business lines and improved profitability, which means that it can be optimistic about the second half of the year.
“The company’s roadmap set out in its strategic plan therefore remains intact, although with caution - mainly due to the complex and uncertain situation”.