Short rents hit 80s peak
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• The short term rental market has returned to the high useage levels of the late 1980s, according to Dawsongroup, which has reported a 41% increase in half year pre-tax profits to £5.02rn.
During the six months to June 1994, the Milton Keynes-based Group raised turnover by 14% to £28.2m. The improvement in performance was most marked within the Dawsonrentals division where turnover increased by 43% thanks to an average use rate of 87% in short-term truck rental. Revenue from contract hire, however, fell by 5%.
Commenting on the results, chief executive Michael Williams says: The rental market is at last making a return to pre-recession levels when utilisation rates in the mid-80s were not unusual. We are seeing the beginnings of a pick-up in contract hire as we progress through the economic cycle, but we believe short-term rental will remain popular as buyers allow for vehicle delivery times."
Trailer rental also performed strongly, with useage averaging 84% compared to the 74% reported last week by rival Central Trailer Rentco.
As part of a £25m fleet replacement programme, Dawsonrentals says it intends to purchase another 300 trucks and 100 trailers by the end of the year.