THE NOUGHTIES
54
The success of ServiceMaster, with its centralised transaction
management system, had laid the foundations on which specialist
rental would thrive. The company’s new financial targets were 10%
compound profit growth, with a three-year target set (and met) of
a 15% return on capital. This was in sharp contrast to some of the
low single digit returns prior to 2000. The management team set
its stall to create a specialist equipment rental group out of its
existing business activities.
The momentous changes to bring about this new
modus
operandi
impacted on everything and everyone. In exiting
general plant hire Vibroplant had to sell 7,000 pieces of equipment,
close 25 depots and lose 300 jobs. Another significant change
was a rebranding, plus an important reclassification on the
Stock Exchange listing from construction to support services, thus
more appropriately reflecting the strong service nature of the
new business offer.
(above)
Chairman Jeremy Pilkington
(left)
and Group Managing Director
Neil Stothard (2001)
(right)
Groundforce expands its
shoring expertise
THE NEED FOR A BUSINESS THAT COULD THRIVE RATHER
THAN SURVIVE WAS THE DECISION MADE BY THE
COMPANY AT THE START OF THE MILLENNIUM. EXITING
THE GENERAL PLANT HIRE MARKET WAS THE RESULT.
