Speedy Hire reports further progress

MORE stable market conditions at home, and surging international revenues is helping Speedy Hire to look forward with increased confidence.

The Newton-le-Willows group has been hard hit by the recession, and the country’s largest provider of tool and equipment has been forced to refocus on markets outside construction.

In a trading update ahead of its half year figures for the six months to September, which will be released next month, the company said its performance was in line with expectations with underlying revenues up 5.3% on the previous year.

As well a growing revenues, Speedy’s focus on operational and capital efficiency initiatives, has enabled it to “improve profitability, operating margins and return on capital employed”.

In the UK, Speedy has focused on the regulated industries and those markets supporting social and economic infrastructure, especially in the areas of water, waste, energy and transport.  Underlying revenues for the first half were up 3.2% on last year.

In the International division, revenue was up 77% on H1 FY12, predominantly driven by a growing presence in the oil & gas sectors.
 
The ZADCO project to support the drilling activity on four artificial islands in the Arabian Gulf is expected to result in revenues to Speedy of up to $50m over the next five years and will support further progress in profitability in the second half of the year.

Net debt at September 30 was around £83m, some £7m higher than the figure at the end of March after investment in new equipment.

Commenting on the performance chief executive Steve Corcoran said: “Continued implementation of the group’s strategy and a range of self-help measures have seen Speedy make further progress during the first half.  

“Although market conditions remain challenging the board is confident of meeting its expectations for the financial year and continues to look to the future with confidence.”