Rental profits lift
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• A boosted short-term trailer rental market and ail-round improved useage and rates helped Dawsonrentals' group pre-tax profits leap nearly 70% in the full year to December 1993 to £7.92m on £53.3m turnover.
Further growth this year from short-term truck and trailer rentals could be hampered by levelled rates: executive chairman Peter Dawson believes there could be a small increase at the end of the year.
Demand for short-term truck hire has already levelled off: average numbers of rentals dropped around 12% last year.
Truck rental fleet useage was boosted 4% last year to an average 76%: average revenue per unit climbed with 8% increased rental rates. Trailer rental revenue grew 26%: average trailer fleet grew 14% to 1,260 units and revenue per unit rose 9 %— trailer utilisation is now 83%.
Further improvements in short-term vehicle use can be achieved, says Dawson. Contract hire revenue was maintained: two of the largest customers renewed their three to five-year contracts in the past 18 months.