Speedy moves back to profit

16 November 2011

In an interim report for the six month ending 30 September 2011 Speedy Hire reported a return to profit of £4.8 million compared to a loss £9.9 million for the same period in 2010.

The company said that improvement in trading is driven by the company's ongoing focus on core customers and markets, namely: water waste energy and transport.

Speedy also announced it will close its Advisory Services division following the strategic review started in October.

Ishbel Macpherson, Speedy's chairman said, ""We are pleased to report the continuation of our recovery in these challenging times. Our strategy of aligning ourselves with stronger customers and market segments, focusing on our core activities and driving improved efficiency is ongoing. As a result, the Board is confident of the Group meeting its expectations for the financial year. "

Revenue for the six month period increased by 2.1% over 2010 to £158.9 million and Speedy said that its market share remains strong, "Business [is] well positioned in core and regulated infrastructure markets of water, waste, energy and transport.

"The improvement in trading performance continues to be driven by the recovery in our UK and Ireland business, which has seen a 2.1% increase in underlying revenues year on year (excluding accommodation and the expired Network Rail contract), principally as a result of an improving yield, up 7%.

"Utilisation in the UK business has also continued to improve. Encouragingly, having successfully concluded the disposal of the loss making accommodation operation for net proceeds of £33.4m in April 2011, all UK hire operations are now profitable."

The company has meanwhile closed its Advisory Services division following the review announced in October. The Training business will continue - and secured a number of national contracts in the six month period - but the performance of Advisory Services was described as "disappointing" and it has been closed. Training will
continue and form part of UK & Ireland Asset Services.

Advisory Services offered a number of audit and support services, including waste compliance audits, resource efficiency programmes, planning support, due diligence reports, contaminated land risk assessments and environmental impact assessments.

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