Speedy Hire achieves 120% increase in half year pre-tax profits
Growth of its SME base has enabled plant hire group Speedy Hire to report improved results for the first half, to September 30.
The Newton-le-Willows-based group today unveiled a 6.5% increase in revenues, excluding disposals, of £192.8m, while pre-tax profits showed a healthy 120% improvement, at £13.2m.
Adjusted profit before tax was up by 24.1% to £13.4m, compared with £10.8m the previous year.
The group, which says it has a strong balance sheet, saw encouraging growth in its SME numbers, and revenues, during the six month period.
As at September 30, net debt amounted to £62.7m, compared with £63.1m this time last year, and included £21.3m of acquisition spend.
It said its asset utilisation in the UK and Ireland improved to 56.2%, up from 54.7%, and the average age of its hire fleet reduced to 3.6 years, from 4.2 years, following further investment.
Speedy Hire’s digital strategy is gaining momentum, it says, and it declared that its customer delivery promise strengthened in London – delivery is now available within four hours on most popular products.
Chief executive Russell Down said today: “These results demonstrate the progress we have made in implementing a customer-focused strategy and growing our SME customer base.
“We have further improved our customer service proposition and the use of technology to better manage the business and meet market challenges.”
He added: “We remain confident of delivering a result for the full year in line with our expectations.”
The board has declared an increase in the interim dividend of 20% to 0.60 pence per share, compared with 0.50 pence per share, to be paid on January 25, 2019.
David Shearer took over from Jan Åstrand as chairman on October 1, and Jan retired from the board on October 31.
The group’s headcount at September 30 was 3,855, an increase from 3,755 in 2017.
In the UK and Ireland, headcount rose to 3,281, from 3,238 last year, primarily due to increased sales and marketing activities. Headcount in the international business increased to 574, from 517, as a result of revenue growth.
