Middle East growth helps Speedy

UK rental company Speedy said it improved profitability and operating margins in the six months to 30 September with underlying revenues up 5.3%, despite continued “challenging” conditions in the UK.

In a trading statement in advance of first half financial results, Speedy said business had been in line with expectations, with UK revenues up 3.2% and its Middle East revenues increasing by 77%.

The company continues to focus on regulated industries in the UK, with the increase in revenues resulting from increases in volume and pricing offset by reductions related to the mix of products and customers.

The success story of the period was the international business, mainly in the Middle East, where the 77% revenue growth was mainly the result of activities in the oil and gas sector.

The company has started to mobilise for the first phase of the previously announced ZADCO project to support drilling activity on four artificial islands in the Arabian Gulf. The project is expected to generate revenues of up to US$50 million over the next five years.

Steve Corcoran, Speedy’s chief executive, said; “Continued implementation of the Group’s strategy and a range of self-help measures have seen Speedy make further progress during the first half.

“Although market conditions remain challenging the board is confident of meeting its expectations for the financial year and continues to look to the future with confidence."