Speedy tools up ahead of ‘significant growth’ in infrastructure and energy projects
Tool hire group Speedy has largely bounced back from the impact of the pandemic and looking forward to benefitting from major infrastructure and energy projects.
Revenue and profits have “grown significantly” at the Newton-le-Willows company and momentum has continued.
It said “volume growth and price increases [are] more than offsetting cost pressures” in the first two months of the new financial year.
Adjusted pre-tax profits were up 72% to £30.1m in the year to March, while revenues increased 16% to £381.7m.
Both figures remained a little below its performance in the year to March 2020, which was only slightly impacted by the pandemic, when revenues reached £406.7m and adjusted profits were £34.9m.
Speedy’s chief executive Russell Down said: “Whilst the macro-economic environment is uncertain, our end markets are positive with significant growth projected in major infrastructure and energy projects including HS2 and nuclear.
“Our rail business has continued to expand through winning market share from new and existing customers on HS2, CP6 and more widely. In the housebuilding market we continued to see strong demand and growth in the year.”
Down has previously announced plans to retire after seven years as chief executive, and will stay until his replacement is appointed.
In the meantime he becomes one of three members of a new sustainability committee, alongside Rob Barclay and Rhian Bartlett.
Down added: “We have continued to progress our strategic goals by taking market share, developing a first class digital customer experience, prioritising our people and leading on ESG.”
Speedy Hire launched a £30m share buyback programme in January and has so far purchased shares worth £10m.
The board has recommended a final dividend of 1.45p, which brings the full-year dividend up to 2.2p. This is 50% of adjusted earnings per share, and at the top end of the company’s dividend policy.