Speedy Hire Posts Flat Fiscal First-Half Revenues

Oct. 18, 2013

Speedy Hire, the U.K.’s largest equipment rental company, posted flat results for the six-month period ended Sept. 30. In a trading update issued prior to its interim results to be announced next month, the company said fiscal first-half revenue decreased by 0.1 percent compared to the previous year.

“Whilst we are yet to see any material improvement in construction work, the U.K. and Ireland division continues to navigate through the economic challenges by focusing on active hire markets, service revenue streams, an increasing proportion of non-construction-related activities and progressing with the depot network and logistics strategy,” the company said in a statement. “Although U.K. and Ireland revenue in Q1 fell by 2.6 percent, with the National Grid project now fully mobilized and new Q2 non-construction-related contract wins (£4.2 million in the infrastructure sector and £6.5 million in the industrial sector), Q2 revenue decreased by only 1.6 percent, mitigating the overall fall for H1 to 2.1 percent.”

Speedy’s International division has, however, made good progress with first-half revenues increasing 28.5 percent compared to the previous-year period, with mobilization on key projects continuing according to plan. During the first half, Speedy established a presence in Qatar to capitalize on attractive opportunities in both the oil and gas sector and government-backed infrastructure initiatives across the region.

“Whilst the U.K. market, particularly in construction, remains challenging, our strategy to diversify the group’s revenues to secure both hire and service agreements from companies in non-construction-related activities and internationally in the MENA region is generating results,” said Speedy Hire Plc chief executive Steve Corcoran. “With an improving trend in the U.K. and Ireland in Q2 and a strong H1 performance in the International division, the Group continues to trade in line with the board’s expectations and remains well-positioned to benefit from the future U.K. recovery supported by a conservative balance sheet.”

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