Diversified Speedy sees profits leap
SPEEDY Hire, the North West-based equipment hire and services provider to industry, has reported a strong set of results against a tough economic backdrop.
The Haydock-based group, which has 264 depots and operates in the UK, Ireland and the Middle East said profits, revenues and its annual dividend were all ahead in the year to the end of March, while net debt had been reduced by 5% to £72.4m.
Adjusted profits before tax rose 35.5% to £16.8m as underlying revenues grew 4.3% to £340.4m.
As the domestic construction sector is still in recession Speedy has sought to expand its reach into new areas such as infrastructure and general industry.
In the year under review revenues from non-construction activity now account for more than 50% of total income.
Ishbel Macpherson, Chairman, said: Our focus on the right customers, in the right markets and on the right type of work has enabled the Group not only to grow revenue, but to do so at improved margins and levels of profitability, whilst improving cashflow.”
She said Speedy was transforming itself from a hire to a service company, and as a result o “self-help measures” over the last couple of years, is now more resilient.
The group announced a final dividend of 0.31p per ordinary share (2012: 0.26p), taking the total dividend for the year to 0.53 pence per ordinary share.
Chief executive Steve Corcoran said the year represented a “another year of good progress” achieved against the UK construction market which reversed 8.8% in 2012.
He said: “A key component of our success has been the continuing focus on the more sustainable infrastructure and industrial markets… As a business we are now significantly less dependent upon general construction than we were in FY2010, when construction represented 65% of our revenue.
“Not only are we better positioned in our end markets in the UK but also, through the continuation of the strategy started in 2010 to extend our business internationally, we are less dependent on the UK market place with 7.1% of our business now derived from non-UK activity, up from 5.1% in FY2012.”
