Services and long-term rentals boost GAM

Spain’s largest equipment rental business GAM Alquiler has seen a 65% increase in its services revenue for the first nine months of year. Its long-term rentals business also grew strongly at 31%.

Overall revenues recovered to pre-pandemic levels and were up 30% for the nine months to €122.5 million. Net profits of €0.1 million compared to a €2.5 million loss in the same period in 2020.

GAM’s business includes the distribution of brands such as Hyster and Magni.

Short-term rentals, which is the activity that was most impacted by the pandemic, grew by 9%.

The growth in its services – including sales of equipment, training and equipment maintenance – means that these activities now account for 38% of GAM’s total business.

GAM said its profitability had improved through the year, with the first quarter “highly determined by the pandemic” and each of the two subsequent quarters to the end of September generating profits of €1 million.

The company said this was “despite some difficulties related to expected delivery delays from equipment manufacturers in the context of the current lack of supplies and international logistic problems.”

GAM said it had cash reserves of €35.9 million, which would allow it to continue to seek growth opportunities. In July it acquired Recamasa and more recently Ascendum’s material handling business in Portugal.