NHR 0.00% $3.73 national hire group limited

31//12 results&briefing

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    COMPANY OVERVIEW:
    nhr is one of the leading equipment hire companies
    on the eastern seaboard of australia
    it operates 4 business units with a wide product range and has a diverse customer base totalling approx 3,750

    post the sydney olympics in 2000 the company was affected by reduced hire demand and then completion
    of the hih litigation resulting in a total settlement of 1m
    by feb 2008 (250k initial and 75k every 6mths)which has been extensively reported by the company under the 3.1 continous disclosure rule
    for more info www.nationalhire.com.au

    the settlement now allows mgmt to focus on actually running the business like it should be and not spend countless hours associated with legal issues

    cost reduction program implemented involved some branch closures,mgmt restructure and staff redundancies

    following the 6.3m rights issue the company appointed mr kelsey(ceo wreckair1978-1990)exec chairman &ceo
    privatised vic roads that became 'ah plant hire'

    and post the 25m placement offer to kerry stokes(ace p/l & westrac)will result in the ch7 network boss
    with a 60% stake in nhr,majority board directors on a five person board(giving him effective control)and a rebranding of all nhr branches to 'cat rental stores'

    FINANCIAL PERFORMANCE:
    improved operations,mgmt restructure,focused marketing,sales initiatives,cost controls,capex on hire/stock fleet(to reduce sub hire)demand for hire services from dwelling,alterations&additions and infratsructure projects(sydney cross city tunnel,m7 west link and 400m spencer st stn redevelopment) have all assisted in steady increased sales revenue and positive change in company prerformance reflected in the financials

    OUTLOOK:
    hire industry currently growing at approximately 3.5% pa
    and co in growth stage of cycle due to preference by end users to out source their short term requirements

    capital will be sourced in order to be invested hire/stock fleet,reduce costs and leverage of the current demand cycle forecast to continue about 2006/2007 by bis shrapnel

    a 6.3m rights issue and 25m placement to kerry stokes asociated company (ace p/l /westrac) was recently completed as a result

    CONCLUSION:
    31/12/03 results are most likely to be presented before the auditors some time this month(1/04) with expected release to market approx feb 2004

    the company and mgmt have worked well through the difficult period of a downturn in rentals,flow on affects of a stkmkt tech crash and its exposure to a 1.74m judgment(reduced to 1m) because a subsidiary was left unisured after the hih failure which put pressure on the
    share price

    sales have managed to hold suggesting that all the group needs for the future is a kinder economy,public liabilty insurance,a decent acquisition(ie.'ah plant hire') and some more attention to the actual business inside out by stockbroking firms,fund mangers and boutique capital operators
 
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