Speedy Hire back on track says boss as profits rise

THE new chief executive of Speedy Hire says the group is back on track after a difficult period and is looking to make the most of opportunities by being more customer focused.

Announcing what he described were “positive” results for the six monts to the end of September, Mark Rogerson, who joined in February in the aftermath of an accounting scandal in Speedy’s Middle East operation, said his first mission, to stabilise the Newton-le-Willows-based company was completed.

He said: “My immediate priorities were to stabilise the business, improve performance and regenerate growth.  The first priority has been achieved and we are making significant progress on the second and third.”

Before one off costs of £3.7m Speedy;s hqalf year profits more than doubled from £4.5m to £10.3m as revenues rose 12.2% to £189.3m. In a sign of confidence in its prospects Speedy raised its interim dividend 15% to 0.3p per share.

Mr Rogerson said revenue growth had been achieved through a number of major contracts wins in its key target markets of construction, infrastructure and industrial services.  Revenues from the group’s strategic and major accounts (generating some 50% of total revenues) rose by 22.6%, as activity levels increased and several major projects were completed.

He said: “Whilst these results primarily reflect our self-help measures and the delivery of early efficiency improvements, we have also begun to benefit from an improving market environment in the UK, thanks to a focussed and disciplined approach to our strategic accounts and re-engagement with our regional customers.

“While much remains to be done, not least in the Middle East, there are major opportunities ahead as the UK continues with a very significant infrastructure regeneration programme.  Having stabilised the business, we can now turn our attention to differentiating Speedy through service, quality and innovation, optimising our asset base and delivering sustainable profit growth.”

He said the group was “on track” to deliver full year  results in line with the board’s expectations, while  adding “our confidence for the future is underpinned by an increased interim dividend.”