Directors at Newcastle based Nixon Hire say they are excited for the firm’s “direction of travel”, after a year of strategic investment and divestment triggered a turnover increase to almost £100m.
The industrial equipment company, established in 1967, supplies plant, site accommodation, welfare and toilets to the construction, utilities, infrastructure, housebuilders and corporate sectors. Last year saw the business carry out a review of its operations to set it on a path to long-term sustainable growth.
Now accounts for 2023 have been filed, showing how the company made record capital investments of £40.1m into its fleet as well as making investments of £11m since 2022 into its renewable power division, while also resizing its plant fleet.
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Accounts for 2023 show turnover increased by 18.7% from £83.9m in 2022 to £99.7m in 2023, driven by moves to divest its large plant offering from all regions apart from the North East, which sold off its large plant offering following the year end. It said that it is seeing improvements in its markets this year but that rising inflationary costs, including energy, diluted gross margin in the accounts year. The company also suffered a £0.13m bad debt write-off after a major customer fell into administration.
Operating profit dropped from £9.6m to £7.3m and overall profit for the year was reduced from £6m to £1.8m. Dividends of £3.125m were paid during the year.
In the accounts, directors said: “During 2023 the board carried out a comprehensive review of the company’s hire offering across all its existing and potential products to identify where its key expertise exists and which of its services were most valued by its customers. The decision was made to provide large plant hire through strategic partners, enabling Nixon Hire to allocate capital investment in its owned fleet to accelerate growth in its strongest areas of differentiation.
“These actions that were completed during 2023 and, in the case of the North East depots, post year end in July 2024, have generated cash that has been used to reduce debt and provide funds for future investment in the key elements of the sustainable site solution portfolio.
“As a family-run and family-owned business that has owned a large plant fleet for the best part of 60 years, it was not a decision that was made lightly. However, in a rapidly evolving market, it was clear it was the right one to ensure Nixon Hire keeps moving forwards, delivering exceptional customer experiences in areas that customers value.”
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The company added that its sizeable investments mean it will not be until 2025 that the “new” Nixon Hire will present financial results that are “unencumbered from the transitional steps taken to deliver its strategic objective”.
Directors added: “Looking ahead, I am excited by the direction of travel of the business. Nixon Hire’s journey to date has encompassed a willingness to be bold and ambitious, changing with the times. The financial years 2023 and 2024 to date have seen a continuation of this theme and we move forwards with the business in a strong position and on a positive trajectory. While there is still work to be done, we have a clear strategy and a high-calibre senior leadership team making tangible progress against it.”
CEO Graham Nixon said: “For nearly 60 years, we have built a strong reputation by putting customers first and consistently delivering outstanding results. To be successful for as long as we have, you need to maintain a proactive mindset and be ready to embrace new growth opportunities as they arise. Our repositioning as experts in sustainable sites is aligned to this approach, concentrating on what sets us apart, focusing on the solutions our customers have told us they value the most, and investing in our technical expertise and capacity for innovation.”
“This is evident in the successful launch of our new Modular Buildings division, and in the work we are undertaking to establish Renewable Centres of Excellence in Glasgow, Newcastle, Castleford and Bedford, which will enable enhanced market-leading support across our network. The planned changes we have made have laid the foundations for our long-term nationwide growth ambitions, and we look to the future with confidence.”