Speedy increases full year results forecast on strong first half

Speedy Hire

Speedy Hire said it is confident it can deliver full year results ahead of market expectations, today. The analysts’ current consensus is £29.2m adjusted profit before tax.

The Newton-le-Willows-based tools and equipment hire group published is results for the six months to September 30, which showed improvements in both sales and profitability.

Its statutory figures revealed turnover of £188.6m, up from £147m this time last year, while the £14.3m pre-tax profit compared with a pre-tax loss of £400,000 a year ago.

Net debt has been reduced by 17.1% to £47.9m, and a 0.75p per share interim dividend has been recommended, marking a return to dividend payments after their suspension last year due to the pandemic.

Speedy had cash and facility headroom of £131m, down from £142.3m at March 31, 2021, while bank facilities of £180m were renewed to July 2024, providing significant headroom for growth.

The group made significant investment of £37.6m in its hire fleet, with a focus on carbon efficient ECO products.

During the year the group said it has achieved a continual improvement in asset utilisation due to the use of artificial intelligence, while costs were tightly controlled. It also managed further market share gains with a number of new contracts and renewals with key customers, including Costain, MGroup Redrow Homes and Willmott Dixon.

The first half also saw the successful trial of Speedy outlets in 16 B&Q stores, expanding its retail proposition through a seven-day offering.

Looking ahead to the second half of the financial year, the group said market conditions remain positive, with infrastructure and construction sectors bolstered by major projects.

Customer demand continues to improve into the second half, most notably following an agreement signed with B&Q with 23 further stores to open, generating incremental revenue. Speedy said targeted price increases are offsetting cost pressures, while improvements to simplify and standardise the operating model are ongoing.

Chief executive Russell Down said: “We have delivered another strong set of results through the strength of our offering, efficient operational delivery and a supportive market backdrop.

“Our focus on ESG, digital and customer service, including our four-hour delivery promise, has once again yielded customer renewals and market share gains.

“Positive trading momentum in recent months and the significant growth opportunities presented by major infrastructure projects give us confidence in delivering full year results ahead of current market expectations and sustainable growth in the medium term.”

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