Speedy remains wary despite improved second half

SPEEDY Hire has reiterated its belief that it will make a “marginal” full year loss after improved trading in the second half of its financial year.

The country’s leading tool and equipment hire group said in a trading update for the year to March 31 that revenues int he period would be just above £350m, broadly the same as the £177.3m reported in the first half. The figures included a 4.8% increase in revenues in the final quarter.

The Newton le Willows-based group said revenues in its new International and Training and Advisory Services businesses had seen good growth in the fourth quarter and jointly would contribute more than £10m to sales in the full year, compared with £3.7m in 2010.

Despite a £10m increase in net capital expenditure Speedy said it had managed, through a ‘continuing focus on prudent cash management’  to cut full year debt from £119.3m to around £115m.

After an interim loss of £9.9m the company said its strong second half performance meant the full-year results would show “marginal adjusted loss before tax.”

Despite what was described as an “ecouraging performnace” the company said: “The board maintains its cautious view about short term recovery prospects and cost pressures in the UK and is mindful of the political tensions in the
Middle East.

“Therefore its expectations for the new financial year are unchanged.”

It said however that it remains “well placed to benefit from the eventual market recovery”.  The company will publish its full-year figurs pn May 18.