Speedy Hire Expects First-Half Operating Loss

Speedy Hire, the U.K.’s largest rental company, said that while it is currently trading profitably, it expects to post an operating loss for its fiscal first half ended Sept. 30 on 4-percent lower volume. However, the company said the performance is in line with expectations and expects a stronger second half.

The company said it will incur a charge of £1.7 million (about U.S. $2.7 million) because of the collapse of housing firm Connaught plc, with which Speedy had a sole-supplier relationship before Connaught sought bankruptcy protection. Speedy previously said it expected to make about £1.7 million in revenues between now and the end of the fiscal year from Connaught, and now doesn’t know how much of that revenue will be forthcoming.

Speedy, which has 325 locations, has recently been awarded a series of major new infrastructure contracts, including a five-year sole supplier agreement with Thames Waters and a three-year pact with Babcock International.

The company said it is cutting down its senior management team, resulting in the departure of executive director Claudio Veritiero.

Speedy Hire is based in Newton-le-Willows, Merseyside, U.K.

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