Speedy Hire back in profit

SPEEDY Hire said it had achieved a year of “modest progress” in the 12 months to March 31 after declaring a pre-tax profit of £3.2m, compared with a £27m loss last year.

The profit was achieved despite the fact that its overall revenues were down by 7% to £329.3m (£352.4m), due partly to the loss of a major contract with Network Rail and also the sale of its accommodation hire business in April last year.

The firm argued that underlying revenues were up by 4%, and that it was now focused on “developing close, long-term strategic partnerships with major customers and industrial groups”.

Chairman Ishbel Machpherson said the company’s adjusted profits before tax was stronger in the second half of the year (£7.6m) than the first (£4.8m), as it “to keep tight control over costs, to strengthen our revenue base and to manage the business so as to maximise cash generation”.

She added: “Our strategy continues to be one of aligning ourselves to the key market sectors and the majors that are demonstrating growth, along with a disciplined approach to cash and managing costs.

“This has resulted in continued progress for the group and we have created a solid platform from which to build for the future.”

The company generated cash before financing costs of £39.3m, compared with £7.4m in the previous year. This helped it to reduce net debt by £37.6m to £76.3m, even after a capital investment of £20.3m.

The firm, led by chief executive Steve Corcoran, also said that it was continuing to consolidate its network of 283 sites, and had opened seven new superstores during the period.

“Although our business has been through a very testing and unrewarding period for shareholders, we are pleased that our actions and strategy have set us on the path of recovery,” said Macpherson.

“Our market-leading position and strong cash flow have positioned the group to take full advantage of the market upturn when economic conditions allow.”