Interim Results

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BRANDON HIRE PLC

• Interim Results
• For the six months to 30th June 2005

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OverviewCharles SkinnerChief Executive
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A solid six months

• Satisfactory results set against very strong
  comparables
• Organic growth of around 3
• National network in place
• Strengthened market position
• Major new contract wins

Well positioned for further growth
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Financial OverviewChris SimsFinance Director
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Key financials

• Turnover up 18 to 26.4m (2004 22.3m) with
  organic growth of around 3
• Operating profit slightly down due to
• Geographical expansion
• Less buoyant market to equivalent period last
  year
• Very strong like-for-like comparables
• Interim Dividend up 6 to 1.6p per share (2004
  1.5p)
• No major adjustments for IFRS

Solid growth with a good return to shareholders
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Profit and loss account

• IFRS
• - Share-based payment
• No pension effect
• Intangibles asset amortisation
• Tax rate 28

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Balance sheet

• IFRS
• Intangible asset recognition from Delco
  acquisition
• Hedging Liability recognised
• Gearing 82 (June 04 82, Dec 04 72)
• Sufficient headroom for further expansion

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Cash flow

• EBITDA 4.8m (June 04 4.3m, Dec 04 9.7m)
• In H1 3 acquisitions with 5 branches for 1.3m.
• Since June, further 4 acquisitions with five
  branches for 1.2m
• In H1 Greenfield development 0.5m

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Strategic Update and Current Trading Charles
SkinnerChief Executive
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A phased strategy
1yr
2yr
3yr
4yr
5yr
SHORT TERM Achieve full mainland coverage

MEDIUM TERM EPS enhancing acquisitions Increase
density of coverage
LONG TERM Establish market leadership in UK
Achieving market leadership
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Development progress

• Seven acquisitions made since 1 January 2005,
  representing ten new
• Branches
• February, acquired Harborough Hire, with branches
  in Market Harborough, Leicester and Kettering
• March, acquired Swan Hire in Haverfordwest  
• April, acquired Hunting Hire in Ipswich  
• July, acquired Hire Sales in Sheffield. Spa
  Plant with branches in Bow and Southend-on-Sea.
  A1 Tool Hire in Norwich  
• September, acquired Lynwood in Kings Lynn
• New branches of both Brandon Tool Hire and
  Brandon Loadtite were opened in Middlesbrough and
  Newcastle in April and July

High density of branch coverage provides better
service and produces higher operating margins
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National network in place
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Broadening base of large customers

• Successful entry into large customer base
• 1999 one large client spending more than 100k
• 2004 40 clients spending more than 100k with 4
  now spending more than 1m
• Large clients now account for around 30 of
  turnover
• Two objectives
• Grow large customer base further
• Increase spend of existing large customers

Large Customers are a huge growth opportunity
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Key drivers of success

• Focused business
• Increasingly strong brand
• Cover all of mainland Britain
• Increasingly attractive to very large customers
• Well established management and staff
• High growth and track record creates ability to
  attract best staff
• Robust infrastructure and IT systems
• Exciting opportunity to grow market share

Dedicated to strict return on capital
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Current trading and outlook

• Trading remains sound with a record July August
• Acquisitions integrating well and starting to
  contribute to the bottom line
• Well positioned to grow customer base and
  opportunity to gain market share in a growing and
  consolidating market
• Further geographical expansion

Well positioned for profitable growth in 2006
onwards