‘Positive’ trading continues for Speedy

Tools and equipment hire group, Speedy, reported “positive momentum” has continued in a trading update ahead of its AGM today.

The group said it was trading in line with the board’s expectations adding trading remains strong with “encouraging activity levels being seen in the market.”

Its UK and Ireland core hire revenue for August was c.4% ahead of the same period last year and around 3% ahead for the year to date.

It said overheads remain tightly controlled.

Asset utilisation rates have improved and for the year to date are c.2% ahead of the comparable period in FY2020.

It said whilst there is some evidence of extended supply chain lead times, the group is not experiencing any material impact on hire fleet availability.

The group’s balance sheet remains strong with net debt as at 31 August 2021 at c.£43m.

Speedy has also invested £35m in the hire fleet for the year to date in response to strong demand in certain markets.

Russell Down, CEO, said: “I am pleased to report that our positive momentum has continued with trading remaining strong.

“We have significant headroom within our bank facilities which enables us to invest in our strategic priorities and take advantage of the encouraging market backdrop.”