A Manitou 14m Telehandler in action – one of a full range of handlers from 4m to 17.4m capacity available from the Banner Plant fleet.
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A Manitou 14m Telehandler in action – one of a full range of handlers from 4m to 17.4m capacity available from the Banner Plant fleet.
In common with other plant hire businesses, Banner Plant faced a severely declining market as construction and housebuilding activity was cut. In these circumstances the targets for 2009 were to reduce costs wherever possible, begin to realign the size of the hire fleet to current demand levels by accelerated disposals, reduce capital expenditure, generate cash and achieve a positive return.
Despite the 23% fall in turnover, a market downturn that was more severe than predicted which lead to a small trading loss, all other targets were achieved. Total operating costs were cut by £2.0m (18%), including a 20% reduction in employee numbers. Capital purchases on fleet items were cut from £4.4m in 2008 to just £0.4m, whilst disposals at original cost totalled £4.3m, reducing the fleet size by 13%.
These actions realigned the business to the current market conditions and generated £3.6m cash helping reduce unit borrowings to £4.2m, the lowest level since mid 1999. We remain cautious moving into 2010. The accommodation, powered access and compressed air departments are much less dependent on the construction industry and traded well in the year. 2010 will continue to see stringent cost control and limited capital expenditure for specific demand, with the aim of improving the trading result and generating cash once again.