Speedy grows with big customers

Speedy Hire said continued investment on major infrastructure projects, as well as good levels of activity in public sector projects and the utilities industries, meant it remained optimistic it would continue to grow revenues this financial year, despite slowdowns in housing and commercial office developments and lower spending from its smaller trade customers.

David Wallis, Speedy Hire's chairman, in an interim management statement, said; "public sector spending on schools, health, prisons and defence remains resilient, with many of these projects being funded through committed PPP or PFI schemes. Regulated industries, such as water, electricity, gas, rail and airports, are also releasing significant workload. Additionally, in the private sector large infrastructure projects...and food retailing remain positive."

Mr Wallis said its national contractor customers continued to report encouraging activity levels - Speedy Hire reported a 53.6% increase in revenues from its 50 largest contracting customers for the three months to the end of June - and said that petrochemical, pharmaceutical, steel, nuclear and rail sectors, which represent approximately 30% of turnover, continued to provide growth opportunities.

Speedy had made an "encouraging start to the new financial year", said Mr Wallis, with revenue up 36.4% on the same quarter last year. Tool hire revenue increased 46.0% (including the impact of the acquisition of Hewden Hire Centres) and the Equipment Hire division saw revenues increase by 31.2% (up 10.1% on a like-for-like basis).

Speedy Hire will announce its interim results on November 27, 2008 and expects to provide its next trading update on October 8, 2008.