Speedy Hire sees strong third quarter growth

TOOLS and equipment firm Speedy Hire enjoyed a third quarter sales spike despite the harsh weather and a fall in construction sector output.

It now expects to return to profit in the second half after suffering a £4.6m loss in the first six months.

The Haydock-based firm said sales were up nearly 9% in the three months to December 31, reversing declines seen in the first two quarters.

Fleet equipment sales revenue – reported separately to the group figure – was up 23%, or £1.3m, in the quarter.

In a management statement covering October 1 to February 13 Speedy said this trend continued into 2011, with group revenues up 2.1% in January.

“The board confirms that the business is currently trading in line with its expectations for the full year in respect of adjusted profit before tax (before amortisation and exceptional items),” said the company.

“This implies a return to operating profit (before amortisation and exceptional items) in the second half of the year, following an operating loss (before amortisation and exceptional items) of £4.6m in the first half. These expectations continue, however, to be dependent on a continued strong finish to the year.”