The third quarter is the main profit-generating period for the Storent group. To use this market trend, the Group focused on the integration of large-scale investments in the fleet, therefore maximizing the profit gained this year. The strategy paid off, in the third quarter alone the Group made a net turnover of 13,5 million euros, 4,9 million euros in EBITDA, and nearly 1,4 million euros in net profit.
During the first 9 months of 2024, Storent invested 22 million euros in the replacement and expansion of its fleet, which is the largest amount Storent ever invested during one calendar year. Successful investments resulted in significant revenue and profitability improvement, rental income from own equipment increased by 16%, while rent income from splitrent equipment was only 3% and it resulted in EBITDA increased by 16% compared to the third quarter of 2023. In nine-month company reached 159 thousand euros profit before tax. A significant part of investments is spent on lifts, earthmoving equipment, telescopic handlers, and generators. Most of these are allocated to the rapidly growing sector focused on constructing wind farms and solar panels.
Strong support from investors
On 8 August 2024 Storent initiated voting for bondholders with an offer to change the Net Debt / EBITDA financial indicator, which was affected in the framework of the investments. The voting ended on 5 September 2024, investors holding 57,8% of the principal amount of the outstanding Notes submitted their votes, and 98,6% of those Noteholders voted “yes” to the proposed amendments. As a result, the changes were approved.
Baiba Onkele, CFO of Storent Holding states: “In communication about changes in Net Debt / EBITDA financial indicator, we emphasized the peculiarities of the rental industry. Although the equipment is already generating revenue, it typically takes a year for needed payback results to be reflected. The amount of support in voting results indicates that investors trust our vision and we are grateful to every voter.”
Storent eyes expansion by diversified investments
The company has extended presence in new sectors by adding wind farm and solar panel construction to its established portfolio, which already includes civil construction, road infrastructure, manufacturing facilities, renovation projects, entertainment events, agriculture, and the military sector.
To invest more in the most valuable asset, the team, the Group is developing a new remuneration system to promote a culture of high achievers.
The Group has completed the very complicated transition from existing ERP systems to new cloud-based systems in all 5 operating countries. Now the focus is on even more innovative improvements tailored specifically for the needs of Storent team.
“The platform is more than just a simple digital tool, it is a comprehensive solution making the rental process quick, intuitive and convenient. As technologies continue to develop, we keep finding new ways to improve our platform,” Andris Pavlovs, co-founder and Chair of the Board of Storent, explains.
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