Tiphook profits up by half
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T1PHOOK, the group which includes Central Trailer Rental, announced a 53 per cent rise in its pre-tax profits this week and confirmed its commitment to the trailer rental market which contributes around a quarter of its profits.
It is the first time that Tiphook has delivered its results to the Stock Exchange following its public flotation in July.
In the half-year to October 31, pre-tax profits were £1.02 million compared with £667,000 in the same period last year.
Over the same period, earnings per ordinary share improved by 33 per cent from 4.5p to 6p per share.
Group finance director Ashley West attributed the improvements to the increased size of the Tiphook business. The net book value of earning assets rose from £29.6 million in 1984 to £49.1 million for the first half of this year.
Contributing strongly to this increase, Central Trailer Rental's trailer fleet increased during the six months by 14 per cent from 1,600 to 1,820, Tiphook chairman Robert Montague said.
He said that the client base had also expanded by 30 per cent over the period.
And he said that the trailer rental market has "considerable potential for growth" especially aided by the phasing out of capital allowances against Corporation Tax.
Operators and manufacturers are opting increasingly for rented trailers, so releasing capital for other purposes, he said.
"Currently only 10 per cent
of the total UK trailer fleet is rented and I expect this figure to expand dramatically.
Although expansion was pledged by Central Trailer Rental's managing director, Freddie Fane, with the hope of depots in the East Midlands and west of London, he said that the right opportunities still have to arise.