Re-rentals and fuel sales help Speedy

A 29% increase in revenues from re-hire and fuel sales helped UK rental company Speedy post a 13.8% rise in revenues to £212.4 million for the six months to 30 September.

The company’s ‘service business’ – which includes re-hire and fuel and energy sales – now represents 40% of its total sales. It core rental revenues saw a 5.5% increase to £127.1 million.

Speedy gensets on site.

Speedy said its service business growth was driven by fuel and energy sales and by a “strong performance” from its re-hire business, which Speedy calls Customer Solutions. The company said the services business would make it more resilient to an economic downturn.

The more modest increase in hire revenues was helped by the renewal of significant contracts, including the supply of more than a third of the power generators exported to Ukraine from the UK.

It has also increased its rental prices, partially offsetting the 12.3% increase in overhead costs resulting from inflation.

Operating profits were down 14.8% to £13.8 million, with EBITDA profits 1.6% lower at £48.3 million for the six months.

‘Uncertain’ conditions
The company said market conditions were uncertain and that there was some recent evidence of softening in demand as its end customers reviewed their equipment use.

Dan Evans, Speedy’s former COO who took over as CEO on 1 October this year, said; “Revenue growth is continuing with new contract wins, the effect of actions taken on price and a healthy pipeline of customer activity which gives confidence for further growth in the second half.

“Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, I take over as Chief Executive at a time when our business is performing well, is resilient and positioned to manage changes in market conditions “