Satisfactory Q1 for Speedy

Speedy Hire has reported a satisfactory first quarter in its 2013 financial year, despite a drop in revenue of 2.6% compared to the same period last year.

Ishbel Macpherson, Speedy’s chairman, pointed out that last year’s first quarter results were stronger thanks to business associated with the run-up to the Olympic Games in London.

Ms Macpherson made the comments during the group’s Annual General Meeting today, adding that there are continued challenges in the UK market.

“The UK economy remains under pressure, but we continue to focus on specific UK sectors, grow our services offering, support our efficiency programmes and improve the scale and performance of the International division. The Group is trading in line with management expectations for the full year and the Board remains confident that it is well positioned for the future."

Ms Macpherson added, “In the UK and Ireland division, which constitutes 93% of group revenues, the continued strategy of developing the services revenue, combined with focus on the growth sectors of water, waste, energy and transport, has underpinned a resilient performance considering the difficulties that remain in the general construction sector. Additionally, the National Grid contract started well.”

The International division saw an encouraging start to the year with revenues in the first quarter 30% ahead of the same period last year. “This has been driven by continued growth in oil and gas projects and the ZADCO project progressing in line with our expectations,” continued Ms Macpherson.

Speedy will continue to target the oil and gas sector and government-funded projects, in which it expects to make further progress during the 2014 financial year and beyond. “Strategic capex continues to be focussed on growth sectors and in support of key contracts,” Ms Macpherson added.