Tool hire firm saw revenues increase over last 12 months

Tool and equipment hire firm Speedy said revenues over the last 12 months have grown.

Group revenue, pre disposals, at the Newton-le-Willows firm is expected to increase by 3.5 per cent from the previous year.

Hire and services revenues are expected to grow by 1.5% and 6.% respectively, with hire revenue from SME customers growing by more than 25% following a strategic review.

Whilst underlying business momentum has been positive, COVID-19 is now having an impact on revenues with activity levels reducing, the firm said in a market update.

Adjusted profit before tax for the full year is expected to be slightly below market consensus of £37m.

The full impact of COVID-19 will depend on the length and severity of the disruption to activity in the firm’s markets.

The company said exceptional profit relating to the sale of surplus land of £3.9m was largely offset by exceptional integration and property costs.

The group has a committed asset-backed facility of £175m and an overdraft facility of £5m, available until October 2022.

Net debt, excluding lease liabilities, as at 31 March 2020 is expected to be in the range of £80m to £85m.

The firm has been assessing the potential for disruption caused by COVID-19 and has put in place pre-emptive plans and measures to respond.

However, the board recognises that additional measures are likely to become necessary as this unpredictable situation evolves and is making further plans to both protect the company’s cash position and maintain a robust balance sheet, while seeking to safeguard our workforce.

Chief executive Russell Down said: “Whilst COVID-19 is starting to have some financial impact on the business, I’m pleased to report continued positive momentum across the Group over the last 12 months. We have a well invested fleet, diversified customer base and robust balance sheet.

“We are operating in an uncertain macro environment, and our number one priority is the welfare of our colleagues, customers and communities. Management has robust contingency plans in place, which are being continually updated as the situation evolves.”