Middle Eastern deal boosts Speedy
THE boss of Speedy Hire will today tell shareholders that while trading remains tough it has begun to stabilise and the group has signed a deal to open up opportunities in the Middle East.
The Newton-le-Willows group has signed a “memorandum of understanding” with construction giant’s Carillion’s Middle Eastern venture, Al Futtaim Carillion, to provide equipment and asset management services as part of its strategy to develop closer ties with its larger clients.
The deal follows yesterday news that infrastructure services company May Gurney has signed a two-year £4m supplier agreement deal with Speedy.
Speedy will provide a package of tools and equipment to May Guerney including generators, pumps, lifting gear, surveying equipment and temporary site accommodation.
In a statement ahead of Speedy’s AGM today chairman David Wallis that the difficult trading has continued into the group’s new financial year.
In the first quarter of its 2009/2010 financial year, revenue is down by 30% compared with the same period the previous year. However, it has only declined around 10% from the fourth quarter of the 2008/2009 financial year.
The group’s net debt has reduced by £48m to £247m and Speedy said its national contracting customers continue to report strong order books on the back of on-going infrastructure and regulated sector investment.
It added that the wider construction market, in particular contractors dependent upon the private sector, continues to find conditions very difficult.
Mr Wallis said: “With new opportunities opening up to the business both in the UK and the Middle East, together with a strong balance sheet and a flexible cost base, the board believes that the group is well placed to deal with the conditions that are projected to continue over the short to medium term in construction.
“Whilst acknowledging that challenges remain and that further management action will be required, the board retains its confidence that, despite the uncertainty surrounding many of our markets, the outlook for the year remains in line with its expectations.”
Speedy will announce its interim results on November 25.
