LONDON, August 12, 2021 / PRNewswire / – Modular Group (together with its subsidiaries, the âGroupâ), Europe and Asia Pacific leader in business services specializing in modular infrastructure and services, is pleased to report another solid performance for the second quarter of 2021.
For the three months at June 30, 2021, the Group achieved total sales of 347 million euros, up 24% compared to the previous year, including acquisitions. Before the acquisitions, total revenue increased by 15%, driven by growth in both modular space rentals and sales.
Utilization increased to 87% at the end of the second quarter (83%: Q2 2020) while rental units increased by 12% (up 25,400 to 233,000). Rents increased by 12,800 excluding acquisitions. Organic revenue per unit increased by 10% and 15%, including acquisitions.
Organic EBTIDA increased by 22% thanks to continued progress against the Group’s strategic objectives. Including mergers and acquisitions, EBITDA increased 35% to 113 million euros, as the integration of recent acquisitions continued to progress well. Cash conversion remained strong at 84% ahead of growth and non-fleet investments.
Net leverage reduced to c. 4.5 times the underlying Pro Forma EBITDA, compared to 5.2 times at the end of the second quarter of 2020. The liquidity position remains solid with 193 million euros in cash on the balance sheet at June 30, 2021, as well as 100 million euros of bank availability and 76 million euros of ABL availability.
The Group continues to have a positive dynamic through its four strategic objectives thanks to granular performance management at branch level to optimize volume and margin, an efficient cost base, efficient capital investment and a strategy of targeted acquisition.
At June 27, Modular announced that its shareholders have entered into an agreement to sell the Group to investment funds managed by Brookfield Business Partners LP. The transaction, which is subject to customary regulatory and competitive clearances, is expected to close in the fourth quarter of 2021.
Marc Higson, Managing Director of the Modular Group: “The implementation of our strategy continues to drive our strong operational and financial performance. Excluding mergers and acquisitions, organic EBITDA increased 22% in the quarter and revenue per unit increased 10%.
Our data-driven business and operational focus, combined with stimulus packages announced by governments in our key markets, means we are well positioned for the future. We have a strong M&A portfolio and, with a healthy balance sheet and proven execution capacity, we are well positioned to take advantage of these opportunities.
Finally, I am delighted to welcome Brookfield as a new investor in the company. We are all very excited to drive Modular’s continued growth and look forward to the opportunities to come. “
About the Modular Group
Modulaire Group is a European leader in modular infrastructure and services. We create smart spaces for people to live, work and learn. Our company is designed to help customers find the right space solution, whatever their requirements. The Modular Group is present in 25 countries with approximately 267,000 modular spaces and portable storage units and 3,400 remote accommodation rooms. The company operates under the Algeco name in Europe and Scandinavia, Elliott, AdvantÃ©, Carter and ProComm in the UK, BUKO Huisvesting, BUKO Bouw & Winkels and BUKO Bouwsystemen at The Netherlands, Tecnifor and Locabox in Italy, Ausco in Australia, Portacom in New Zealand, and Algeco Chengdong in China.
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SOURCE Modular Group