Speedy Hire maintains progress with positive interim results

Plant hire group Speedy Hire reported improved interim revenues and profits today, and said it is on course to achieve forecast full year outcomes.

The Newton-le-Willows-based business saw sales in the six months to September 30, jump 5.7% to £205.7m. Excluding disposals that figure came in at £204.2m, a 5.9% imrovement.

Pre-tax profits of £16.4m were a 21.5% increase compared with the same period last year.

Net debt of £85.3m represented a 36% rise on the previous year, although the firm is recommending a 16.7% increase in the interim dividend, from 0.60p to 0.70p per share.

The results include the acquisitions of Geason Training and Lifterz that were completed in the second half of financial year 2019. Both businesses are providing cross-selling opportunities in growth markets and realising synergies in line with expectations.

The business said it has seen a reduced reliance on the construction sector, moving further into the services arena. It also reports continuing growth in higher margin SME customer numbers and revenues.

Its average age of hire fleet reduced to 3.2 years, from 3.6 years in 2018, following further investment.

There were no exceptional administrative items incurred during the period. But, after the reporting date, the group sold a plot of surplus land for a cash consideration of £4m.

It said the resulting pre-tax profit of around £3.9m will be recognised as an exceptional item in the full year accounts to 31 March 2020.

Chief executive Russell Down said: “I am pleased with the continuing momentum in the business and to be reporting another positive set of results for Speedy.

“Our strong balance sheet and financial performance are underpinned by excellent customer service, with continuing progress against our strategic objectives.

“I am particularly encouraged by the growth in higher margin SME customer revenues and progress with our digital roll out where we have continued to make significant investment.”

He added: “Over 40% of our revenue now comes from services compared to around 30% three years ago.

“This, combined with our more diverse customer base, provides us with a strong platform for further growth.

“In spite of the current uncertain UK political backdrop we remain confident of delivering full year results in line with our expectations.”