Plant hire group warns on interim revenue levels

Plant hire group Speedy Hire has warned that its interim revenues will be around 20% below the previous year.

In a half year trading update to September 30, ahead of a results announcement on November 18, the Newton-le-Willows-based group issued the warning, which does not include disposals.

However, it said revenues continued to improve throughout the period as activity levels increased and that trading for the period has been in line with board expectations.

For September 2020, core hire revenue in the UK and Ireland was around seven per cent lower than the prior year, and utilisation rates for the week ended October 2, were 55.5%, compared with 55.9% at the same point last year.

The group’s Middle East business is performing in line with expectations, albeit slightly below the prior year.

Overhead costs across the group have been tightly controlled, including decisive actions taken in response to the COVID-19 pandemic. Speedy confirmed that it now has no staff on furlough.

Net debt at September 30, 2020 was approximately £60m, down from £79.3m at March 31 this year, reflecting lower capital expenditure spend and continued strong cash collections in the first half.

All tax payments deferred as part of COVID-19 support measures were repaid during September 2020.

The group said the situation surrounding COVID-19 is likely to remain uncertain for some time, so, further to its previous announcement on September 10, guidance, consequently, remains suspended.