The United Kingdom’s largest equipment rental firm Speedy Hire Plc posted a 12.2-percent increase in rental for the six-month period ended Sept. 30, the first six months of its fiscal year. Speedy’s group revenue totaled £189.3 (about U.S. $299 million) for the first six months of fiscal 2014, compared to £168.7 million a year ago.
The company also said it will exit the general and spot rental market in the Middle East and, as existing contracts come to an end, will progressively dispose of or return assets to the U.K.
Speedy expects to complete its Middle East withdrawal by the end of the first quarter of fiscal 2016.
Speedy’s 6-month revenues in the U.K. and Ireland jumped 11 percent from £158.8 million in the first six months of fiscal 2013 to £176.3 million this year. Its international revenue leaped 31.3 percent from £9.9 million a year ago to £13 million.
“This has been a positive first half of the financial year,” said CEO Mark Rogerson. ”Whilst these results primarily reflect our necessary self-help measures, and the delivery of early efficiency improvements, we are also benefitting from the improving market environment in the U.K. In the U.K. and Ireland, where we are successfully implementing our customer segmentation strategy, activity levels were significantly higher on the prior period with revenues up 11 percent. Our ‘own city’ campaigns are driving revenue performance in key cities above the national average with London and Manchester particularly successful with revenues up by 18 percent and 22 percent, respectively, on the comparable period.
“The remedial actions taken in the Middle East have stabilized the business but not yet delivered the expected improvement in performance. We have now completed an internal review of the Middle East operations and a strategy is being implemented to stem losses and to build and realize value.”
Speedy Hire is based in Newton-le-Willow, Merseyside, U.K.