Conplant is the largest privately owned compaction specialist in Australia. With a hire fleet of over 750 units and an annual turnover greater than million, they provide compaction hire and sales services to a wide variety of clients including government bodies, civil contractors and the broader construction industry. For seven years, Conplant has worked with GE Capital to unlock their growth potential.
The hire business requires significant inventory and a high number of staff which makes it extremely capital intensive.
Conplant understood that in order to support their growth strategy they needed gear on the ground to respond quickly to opportunities — and that required capital. Traditional lending solutions had resulted in Director’s personal assets being tied up to secure the required funding, and a complex structure that hampered speed. As the business grew in size and sophistication, this type of funding was no longer desirable or able to sustain their long term business strategy.
With a desire to aggressively tender for more projects but lacking adequate capital to do so, Conplant turned to GE Capital to unlock the under-utilised equity in their substantial portfolio of equipment assets.
GE Capital recognised the complexity of Conplant’s hire business, which needs large amounts of capital quickly to maximise commercial opportunities as they arrive. With their global expertise across industry, GE Capital were able to provide an innovative and agile finance solution which delivered improved interest rates, better cash flows and access to knowledge for navigating the increasing complexities of government regulation.
As Director Ian Coleman says, “GE Capital understand our business better than any external party. Having facilities available at the time demand is recognised gives us the ability to react almost immediately.”
With their equity freed up thanks to GE Capital’s Equipment Finance solution, Conplant has been able to remove complex security structures, including those over personal assets, and plan its future with far more certainty – all part of a considered long-term growth strategy. Seven years later and the company’s hire business had now doubled in revenue to million. But for Ian the partnership extends beyond the financial. “With GE Capital, it’s more than money. Being part of a larger organisation they understand not only our industry, but the broader global economy. We have access to all levels of management and the knowledge base there is just incredible.”
As proof of this, when new legislation changed Conplant’s asset security landscape, GE Capital brought their people, legal expertise and a collaborative approach to support them in implementing the required changes.
It’s thinking that comes from working in the real world, not just the finance world. And a commitment to investing not just financial capital but human and intellectual capital too.
Today, GE Capital have partnered with Conplant to become a leading player in the equipment hire space. Director, Ian couldn’t be happier, “We’re now in a growth phase. And GE Capital are right there with us.”
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