Speedy reports continued recovery
18 November 2020
Speedy Hire has reported a 20.5% fall in revenues for the six months to 30 September but has remained in profit, with pre-tax profits of £1.4 million compared to £16.4 million in the same period of 2019.
Customer demand continues to improve, said the company, and the second lockdown in the UK as not had a material impact on its business, with construction and infrastructure markets continuing to operate.
The UK renter said equipment utilisation had returned to 2019 levels. Revenues for the six months were £162.3 million, while EBITDA profits (earnings before interest, tax, depreciation and amortisation) were down 22.2% at £41.0 million.
The company said none of its staff are now furloughed, although since the pandemic it has permanently closed 13 locations and staff numbers have dropped by around 300 since September 2019.
Russell Down, Chief Executive, said: “I am pleased with the resilient performance of our business during this unprecedented period. Cash flow performance has been excellent, due to actions taken quickly to control costs and preserve cash, and our balance sheet remains strong.
“This performance is testament to the strength of our model, hard work of all my colleagues and strong operational delivery…I am pleased to report ongoing positive trading momentum in recent months.
“Moving into the second half, while conditions remain uncertain due to Covid-19, utilisation has returned to 2019 levels and the business is well positioned and invested to take advantage as trading recovers to more normal levels. As a consequence full year results are expected to be towards the top end of analysts’ expectations.”