Speedy making a recovery

Although conditions have been improving since the peak of the pandemic, UK-based Speedy Hire’s revenues for the six months to September, 2020, are expected to be approximately 20% lower than the same period in 2019.

This was said to be in line with the board’s expectations, according to a trading statement published by the company ahead of its half-year results announcement on 18 November.

Revenues have been on the rise throughout the period, with core rental revenues in the UK and Ireland in September being about 7% lower than the prior year.

Utilisation rates for the week ended 2 October were 55.5%, compared to 55.9% in the same period of 2019.

No more staff are on furlough.

Speedy’s Middle East business was said to be performing in line with expectations, albeit slightly below the prior year. Its principal contracts have been extended until 28 February 2021 and Speedy said it remains in discussions with its client in relation to longer term opportunities.

Net debt at the end of September was approximately £60 million, compared to £79.3 million on 31 March, 2020. This was attributed to lower capex spend and continued strong cash collections in the first half of the year.

Since the situation surrounding Covid-19 is likely to remain uncertain for some time, Speedy’s guidance remains suspended.