Speedy Hire back in black
TOOL hire business Speedy Hire has returned to profit, following its diversification into new infrastructure markets.
The Newton-le-Willows group has posted a £7m increase in pre-tax profits to £4.7m for the half year to the end of September 2012 (2011: £2.3m loss). Turnover increased to £169.1m from £161.8m.
Speedy Hire 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.
Today, the group said that despite challenging market conditions, both its UK and international divisions have performed well.
It added that its market share remains strong, and as the group continues to evolve its customer base it is growing revenue in its key infrastructure markets of water, waste, energy and transport together with increasing activity in the industrial and events markets.
Ishbel Macpherson, chairman, said: “We are pleased with the progress made in the first half of the year which clearly illustrates that our consistent strategy is delivering results.
“Against a backdrop of challenging market conditions Speedy has further increased revenue and improved operating margins and returns; continued to implement efficiency initiatives and reduce costs across the business; whilst still investing to support key customers and areas of growth in both the UK and International divisions.
“The board’s focus remains on generating high quality, secure and transparent earnings across the group, from markets where capital investment is more certain. The balance sheet remains strong and we are improving the overall return on capital employed. The Board therefore remains confident of Speedy meeting its expectations for the financial year.”
