Speedy hails progress as profits jump
TOOL and equipment hire group Speedy Hire has achieved revenue of £375m, a rise of 7.2% (2014: £349.7m) and a 50% increase profits to £21.9m (2014: £14.6m).
However, that performance was delivered before the impact of a £17.1m bill for exceptional items as the Newton-le-Willows-based group has continued to restructure its UK depot network and exit from the Middle East ahead of schedule.
The reconfiguration of the home depot network was accelerated during the year and onerous lease provisions cost the company £6.4m.
In the international division, significant asset disposals were undertaken as part of the strategy to exit the core hire business and close other business activities with losses on disposal of assets amounting to £6.2m.
Meanwhile, restructuring and redundancy costs in the UK and Middle East, finance costs and professional fees came to £4.5m.
After all exceptional items, profits were £2.1m, compared with £7m a year ago.
The year end results (March 31), also reported earnings per share up 57.6% to 3.23p (2014: 2.05p) while the dividend for the year amounted to 0.70p, up 14% (2014: 0.61p).
Chairman Jan Åstrand said: “I am delighted to report on a year of significant progress at Speedy. It is particularly pleasing that, despite all the challenges the company has had to face, we have today reported a strong set of results.
“In the Middle East, having completed the exit from general and spot hire ahead of schedule, discussions are underway regarding the disposal of the oil and gas services operations, our last remaining asset in the region.
“We can now turn our focus to developing the business in the UK where there are major opportunities ahead through further professionalising our sales and marketing activity supported by improvements in cost management and asset utilisation.
“We are, once again, in a position to deliver sustainable profit growth and our confidence for the future is underpinned by an increase in the recommended final dividend.”
