16
LOXAM INTERVIEW
more responsibility. Since the2009 Frencheconomic
crisis everyone in the company has had to work
harder and for longer hours just toachieve the same
resultsweweregettingbefore.”
However, that crisis, and itsaftermath, didnot stop
Loxam frompursuinggrowthoutside itsowncountry.
During 2014 it bought the Danish access equipment
company Dansk Lift and the general rental company
Workx, based in theNetherlands.
It was a bold move, but it paid off, in as much
as Loxam’s financial results for the year showed a
solid performance, with revenues stable at €812
million, EBITDAup €10million to €255million, and an
increasedprofitmarginof 31.4%.
After what it described as a “re-profiling” of the
fleet, net fleet investment was €50million, while the
number of employees at the end of December, 4670,
was thehighest at any time in thepast five years.
The twin acquisitions also drove the proportion of
Loxam’s business done away from France up from
15% to 20% in the space of a year. It now operates
in 13 European countries in total. But when pressed
on whether there is anything in common between
thosedeals andDegraus, Mr Henonhas toadmit this
is not the case.
hiring machines from other rental companies. That
was an instant benefit. Wewere expecting it, but it’s
happened very rapidly.
“But activity in France is challenging, it’s a post-
election year. We believe that there could be some
measures taken by the government to improve the
situation, but we don’t believe thiswill have amajor
impact before 2016. At themoment civil engineering
projects are decreasing, and when we listen to our
customers they tell us theyare struggling.”
It could be tempting for outsiders to view Loxam’s
Brazilian ambitions as a magic bullet to divert
attention from the French market, but that is the
last thing onMr Henon’smind. Evenwith the French
market in the doldrums, the company still plans to
open more Loxam City stores – shops focusing on
smaller equipment and serving a varied customer
base – within Paris this year, and is looking to take
the concept toother French cities in the foreseeable
future, possiblyunder adifferent name.
And while the focus of growth remains on Europe,
Degraus will remain an exercise in groundwork for a
coupleof years at least.
“We believe it wasn’t a bad time to step into the
Brazilian market. An opportunity is an opportunity
“There are no similarities at all betweenBrazil and
Denmark or the Netherlands. Dansk Lift and Workx
wereabout reinforcingour position in the toponeor
two players in the countries concerned. Degraus is
different. It’s a first step.”
Strategy
From the outside, and especially with the previous
comment in mind, the stake in Degraus could be
interpretedas a change in strategy. StéphaneHenon
said it is absolutelynot.
“Nothing has fundamentally changed. Outside
France, in most countries the recovery has started,
most obviously innorthernEuropebut also inSpain.
“Benelux has had a reasonably good start to
the year. It was the right timing in terms of the
acquisition of Workx. Denmark is better and Dansk
Lift has given us some good synergies with general
plant operators, whereas before it had been sub-
IRNAPRIL-MAY 2015
Despite the depressed Frenchmarket, the business
aims to extend its chain of Loxam City shops
A Loxam compact excavator in action
Outside France, in
most countries the recovery
has started, most obviously
in northern Europe but also
in the Spanishmarket
