Speedy back in profit after turnaround

SPEEDY Hire continued to show improved results today as it moved back into profit and again reduced debt.

The group, which has suffered along with the rest of the property and construction sector over the last three years, said its strategy of focusing on growing markets and resilient sectors was paying off.

In the six months to the end of September the Newton-le-Willows group, which has more than 300 depots nationwide, said it made a profit before exceptional items and amortisation of £4.8m, compared with a loss of £9.9m a year ago – an improvement of £14.7m.

Stripping out the impact of the accommodation business which was disposed of, and an expired Network Rail contract, revenue rose 2.1% to £158.9m.

During the period net debt decreased by 32% to £77m  – at the end of March it was £113.9m.

Chairman Ishbel Macpherson said: ““We are pleased to report the continuation of our recovery in these challenging times. Our strategy of aligning ourselves with stronger customers and market segments, focusing on our core activities and driving improved efficiency is ongoing.”

She said Speedy is “confident” that it will meet City expectations for the financial year.

Having sold the loss-making accommodation division for £33m in April, Speedy said all its UK operations are now in profit.

“Speedy’s market share remains strong, with the business well positioned in its core and regulated infrastructure markets of water, waste, energy and transport.”

Looking ahead, the company said it continues to make “steady” progress in challenging market conditions and amid an uncertain economic outlook.

“The group draws confidence from the strength of the order books of its major clients, especially those aligned to the regulated industries and private sector investment markets of water, waste, energy and transport.”

It said its focus was on the continued recovery of the UK business through the delivery of further operational efficiencies.