Directors at Newcastle-based Nixon Hire express enthusiasm for the company’s future, following a year of significant investment and divestment which saw its turnover increase to nearly £100m.
The industrial equipment company, established in 1967, supplies plant, site accommodation, welfare, and toilets to various sectors, including construction, utilities, infrastructure, housebuilding, and corporate sectors. Last year, Nixon Hire undertook a comprehensive review of its operations to set it on a path to long-term sustainable growth. As a result, the company filed its 2023 accounts, revealing record capital investments amounting to £40.1m into its fleet and £11m into its renewable power division since 2022, alongside a resizing of its plant fleet.
Turnover for 2023 increased by 18.7%, rising from £83.9m in 2022 to £99.7m. This growth was driven by the company’s divestiture of its large plant offering, except in the North East region, which retained the large plant fleet post-year-end. However, the company faced challenges such as rising inflationary costs, including energy, which diluted gross margins for the year. Additionally, Nixon Hire faced a £0.13m bad debt write-off following a major customer’s administration. Consequently, operating profit decreased from £9.6m to £7.3m, and overall profit for the year dropped from £6m to £1.8m. Dividends of £3.125m were paid during the year.
During 2023, the board undertook a comprehensive review of the company’s hire offerings across all existing and potential products. The aim was to identify key areas of expertise and services most valued by customers. The decision was made to provide large plant hire through strategic partners, allowing Nixon Hire to allocate capital investment in its owned fleet to drive growth in areas of strong differentiation. Actions completed during 2023, and those in the North East post-year-end in July 2024, generated cash used to reduce debt and fund future investments in the company’s sustainable site solution portfolio.
Despite the challenges, directors voiced optimism regarding the company’s direction. One stated, “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 commented, “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 commitment is evident in the successful launch of the new Modular Buildings division, as well as the establishment of Renewable Centres of Excellence in Glasgow, Newcastle, Castleford, and Bedford, aimed at providing enhanced market-leading support across the network.
The planned strategic changes and significant investments have positioned Nixon Hire for long-term growth. As the company continues to pursue its goal of being a leader in sustainable site solutions, it looks to the future with confidence.