Platform hire firm’s prospects rise
OFFERS CLOSE on February 22 for a Hawke’s Bay machinery equipment hire firm specialising in mobile platform and height access equipment rentals.
HB Platform Hire was established in 2004 and has grown its net profit by 39.8 per cent over the past two financial years.
The business operates from two Hastings premises: a 2259-square metre yard at 304 Jervois St, with 330sqm of equipment storage warehousing and adjacent administration offices; and a 1089sqm site at 207 Hastings Street North, with 170sqm of equipment storage warehousing and adjacent workshop.
The sale includes about $1.9 million of modern plant and equipment, a substantial database of commercial clients, a full complement of administrative and operations staff, and all back-office IT collateral and systems.
Three of the four staff - office manager, qualified service technician, two operational personnel responsible for the delivery and collection of equipment, and day-to-day machinery maintenance - have been with the company since it started.
The range of diesel and batterypowered platform hoists includes rough terrain four-wheel drive scissor lifts ranging in reach from 8-12 metres, battery-powered scissor lifts ranging in reach from 6-12m, and self-propelled Z-booms that can reach 12–18m.
Rodger Howie, of Bayleys Napier, says the company has a record of making healthy revenue surpluses.
“The HB Platform Hire business has a diverse customer base in the commercial construction sector - ranging from electricians, engineers, construction and maintenance industries, through to cool store, warehousing and manufacturing, decorators, and fruit growers.
“Changes to the construction and building workplace environment over the past decade have benefitted the business greatly.
“While large construction firms would previously have purchased mobile elevated work platform machinery in years gone by, the costs of meeting increasing compliance and health and safety regulations around usage and maintenance of equipment mean that many companies are now opting to hire out their work platform machinery instead.
“As a specialist in mobile platform and height access equipment hireage, HB Platform Hire has also benefitted from Hawke’s Bay’s healthy commercial and industrial property building boom over the past five to six years.”
Howie says HB Platform Hire had invested heavily in updating plant and machinery to keep up with growing demand.
“In addition to selling the machinery hireage business, the vendors will also consider any subsequent offers to purchase the two freehold properties from which HB Platform Hire operates.
“However, they will only consider offers to purchase the land and buildings in conjunction with the business.”
Howie says a new owner could look at expanding the equipment hire range to include the likes of scaffolding, power generation, earth-moving and digging machinery, or trailer hire.
“The opportunity exists to build on HB Platform Hire’s exemplary reputation throughout Hawke’s Bay as a supplier of quality industrial equipment backed by knowledgeable technical staff.
“Alternatively, any new owner could look at adding on a ‘man-power’ labour hire aspect to the business – where clients could not only hire the right machinery for their height access requirements, but could also utilise the knowledge of HB Platform Hire’s experienced operators to deliver a truly ‘one stop shop’ solution.”
Trading accounts show HB Platform Hire’s sales have increased by 50 percent over the past three full years of trading, clocking in at $1.2 million on the year to March 31, 2018.
“The company trades as ‘lean’ – there are no flashy showrooms or company vehicles, so overheads are kept at minimum,” Howie says.
“Consequently, this allows the company to charge out its equipment and machine hire at extremely competitive rates.”
As a safety-focused business, operators of HB Platform Hire equipment must have current elevated work platform certification.
For more information, contact Rodger Howie on 027 431 1973 (rodger.howie@bayleys.co.nz).