Speedy sees market stabilising
TOOL and equipment hire company Speedy Hire expects full-year results to be in line with City expectations after trading began to stabilise.
The Newton-le-Willows-based firm – which is the largest player in the market – said although challenges remain it was “cautiously optimistic” for the future.
In a trading update Speedy said trading in early the early part of the fourth quarter has progressively recovered from the construction industry shutdown over the Christmas holiday period.
The company has slashed its debt, cut costs and focused on growth locations such as the Middle East as the construction sector continues to suffer from the hangover of the recession.
Analysts expect it to make a loss of £6.3m in the year to March 31.
Speedy Hire, which hires out everything from tools to portable accommodation and compressed air pumps, said revenue in January was 24% below last year, but was broadly in line with its expectations.
Net debt fell 43% to £141m in the 10 months to the end of January. The company expects to pay down a further £16m to to £125m.
The company said: “Given the group’s operational and financial flexibility, together with the aggressive actions already taken to reduce costs, the business is well placed both to take advantage of the eventual upturn in the market and to capitalise on the relative weakness of some of its competitors.”
Chief executive Steve Corcoran told TheBusinessDesk.com: “It’s been a torrid 12 months and we are now well placed to take advantage of opportunities.
“In this time we’ve restructured our banking facilities, done a rights issue, gone through two major cost reduction programmes. consolidated out back office and moved the whole operation to a single IT system.”
