Positive signs for Speedy after tough year
SPEEDY Hire had “another difficult and challenging year” as it posted losses of £22.8m for the 12 months to March.
Although the losses were down from last year’s £71.1m on revenues 27% lower at £351.1m, chairman David Wallis described the financial results as “unsatisfactory”.
The Newton-le-Willows company, which has been hard hit by the recession which has blighted the construction sector, has focused on cutting cost and debt in the last 12 months.
Mr Wallis said there was finally some signs that the market is not falling further:
“The more stable levels of recent trading are encouraging, which may indicate that economic activity in our markets is bottoming out, but we are under no illusions that there remain many difficult months ahead.”
Asset sales and a rights issue saw the company slash net debt by more than over 50% from £248.4m to £119.3m.
Since July 2008 Speedy has taken costs of more than £80m out of the business.
Chief executive Steve Corcoran said 37 depots and 14 workshops had been closed, 322 vehicles had been sold or returned and headcount reduced by more than 300.
Despite the cuts, market share was maintained and new contracts won. He said: “In the year we have secured over 212 new or renewed awards, with a
projected value of £170m.”
With the construction market still suffering, Speedy has sought work outside the market place, and in the last year has won a £7.5m contract from oil and gas firm ExxonMobil and a £4m tender from Welsh Water.
Looking ahead, Mr Corcoran pledged: “We will continue to keep a tight rein on costs, diligently control capital expenditure and manage our cash
prudently.
“Whilst sensitivity remains in respect of the future outlook for some of the markets that we serve, the early and determined action undertaken by management has ensured that the business is now very strongly placed to benefit from the eventual upturn.”
Despite the loss Speedy is paying a final dividend of 0.2p per share, taking the total for the year to 0.4p.
