Equipment hire company National Hire Group Ltd has reported a sharp fall in first half profit but says the decline was within the guidance given at last year's annual general meeting.
National Hire on Tuesday reported that net profit fell to $2.8 million for the half year to December 31, down from $15.3 million for the previous corresponding period.
The company said the decline was due mainly to the reduction in the share of profit from equity accounted investments, including Coates Hire, which was down to $1.9 million from $12.3 million in the previous corresponding period.
The Coates Hire result was affected by revenues being off by 19 per cent, and losses incurred through the divestment of the Allied business.
Weaker revenues in the Allight Equipment Sales and Support business led to a reduced profit contribution from this division also.
"Although the profit performance of the Coates Hire and Allight businesses was significantly down against the prior corresponding period, both businesses generated strong cash flows during this difficult trading period," said National Hire managing director Andrew Aitken.
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