Speedy makes slow progress
HAYDOCK-based Speedy Hire has said that like-for-like sales in the three months since its March year end have edged up by 0.4%.
The firm said that its performance remains “in line with management expectations” following a weaker start due to extended holidays around the Easter and Royal Wedding period in April.
It said that since the end of April monthly sales have improved and were 6.2% higher in June 2011 than in the previous year.
Like-for-like sales in its UK & Asset division, which is currently responsible for 95% of sales, were down 2.2% due partly to the loss of a Network Rail contract. However, an increase in hire rates helped to offset lower volumes.
The firm also reported “encouraging” progress on newer activities, including a training and advisory services division which reported a 70% increase in sales to 3.5m.
It also said the sale of the lossmaking Accommodation Hire business for £34.9m “has had the benefit of removing the only established, loss-making and non market-leading operation from the Group”.
As a result, net debt has dropped to £79.9m (March 31: £113.9m) and its recent £220m asset-based refinancing facility “provides greater flexibility for future capital investment, as well as certainty with regard to our medium-term funding arrangements”, the company said.
It added that the deal, announced last month, marks “another key step in the group’s ongoing recovery”.
Speedy said that an announcement on its new finance director is expected shortly.
