Acquisition helps firm expand fleet

Perthshire plant hire giant Morris Leslie has made a multimillion-pound acquisition of an English rival.

The West Kinfauns firm has acquired the plant hire division of Selwood – adding five depots and 2,000 machines.

The transaction, for an undisclosed sum, will also see 70 staff transfer to Morris Leslie.

The new premises are in Birmingham, Bournemouth, Bristol, Exeter and Southampton.

Group operations director Graham Ogilvie said: “The opportunity came up in the middle of July so we’ve been able to complete the deal quite quickly.

“It very much complements our business and gives us an expanded UK area map.”

Of the 2,000 assets acquired, around 1,300 are big single items, taking the firm’s fleet to 4,500.

Although the initial investment is significant, many more millions will follow.

The Morris Leslie model is to buy new machines, hire them for a short amount of time and then re-sell around the world.

“It’s not just the initial deal, it’s the reinvestment that will come on the back of that,” Mr Ogilvie added.

“Historically their assets have run longer than Morris Leslie and we will replace them.

“Selwood customers will have the new modern plant hire fleet with the same people and service, with new equipment.”

The announcement comes as Morris Leslie publish new financial accounts which show a return to profit.

In the year to April 30 2021, the firm made a pretax profit of £2.6m compared to a £4.6m loss as Covid impacted the business in 2020. Turnover dipped by £1m to £58.7m.

As well as plant hire and plant sales, Morris Leslie has auction and property interests.

Mr Ogilvie said it took some months for the construction side of the business to recover but it had been buoyant since the end of July.

“There has been more confidence, more projects across the construction and housing markets,” he said.

“Demand is outstripping supply which is holding prices for used equipment.

“The challenge we have is getting new equipment.

“That’s been tougher but we still spent £25m last year.

“This year we’ve ordered 2,000 machines at a cost of more than £60m.”

Morris Leslie has said it aims to make a full planning application for a proposed £34m leisure hub in West Kinfauns this month.

It is hoping to create a four-star hotel, lodge-style cabins, transport museum and retail space.

It projects it will welcome 80,000 visitors a year and support 170 hospitality, retail and leisure jobs.

“The plans have been well received,” Mr Ogilvie said.

“It’s job creation, tourism, bringing people to Perth, and locally it will add infrastructure.

“We are also entering the luxury lodge market with Morris Leslie Villages, with our first site under construction.”

It very much complements our business

GROWTH: Morris Leslie has acquired the plant hire division of Selwood, adding five depots and 2,000 machines.