Revenue

Hire revenue increased by 15.5% to $527.6 million in the year ended 30 June 2005 and revenue from ordinary activities increased by 19.2% to $558.9 million.

• The major factors impacting the revenue growth were increases in capacity and improved capability to serve a buoyant market, both helped by the impact of selective acquisitions made during 2005. The major acquisitions in 2005 being Booths Hire (January 2005) and Western Access (May 2005).
• Australian hire revenue increased by 20.8% to $505.4 million. UK decreased by 49.9% to $17.2 million due to the sale of the onshore business in August 2004. Indonesia increased by 20.2% to $4.9 million.

Expenses

Total expenses (excluding borrowing costs of $12.7 million and nil significant items) were $453.8 million in the year ended 30 June 2005 compared with $390.0 million (excluding borrowing costs of $10.6 million and significant items of $6.7 million) in the previous year. This is an increase of 16.4%, which is consistent with the increased hire sales. The main areas of increase were depreciation ($6.8 million), freight expense ($8.9 million), salaries and wages ($8.6 million) and hire fleet maintenance expense ($4.5 million) all of which are due to the increased hire fleet required to serve a buoyant market together with the impact of acquisitions during 2005.

Earnings before interest, tax and significant items

Earnings before interest, taxation and significant items increased by 32.3% to $104.0 million from $78.6 million in the prior year. All business units recorded an improvement over the prior year to June 2004.

Interest

Net interest expense of $11.6 million in the year ended 30 June 2005 consisted of borrowing costs of $12.7 million ($10.6 million in the year ended June 2004) net of interest income of $1.1 million ($0.3 million in the year ended June 2004). This is in line with the level of gearing during the year together with the extra funds obtained from the US Private Placement that were received in December 2004.

Dividend

The final dividend is 8 cents per share, fully franked compared to 7 cents per share, fully franked final dividend in 2004.