Speedy on the up

UK-based rental company Speedy Hire has reported a revenue increase of 6.4% in the first six months of its current financial year, compared to the first half of last year.

Revenue rose £169.1 million in the first six months up to 30 September 2012, while earnings before interest, taxes, depreciation and amortisation (EBITA) increased 15.1% to £33.6 million. Adjusted profit before tax for the six months stood at £6.6m, representing a 37.5% growth on the same period last year from £4.8m.

Ishbel Macpherson, Speedy chairman said the improvement in trading was driven by the company's ongoing focus in core customers and markets and on judicious capital investment to support these opportunities.

“We are pleased with the progress made in the first half of the year which clearly illustrates that our consistent strategy is delivering results,” said Macpherson. “Against a backdrop of challenging market conditions Speedy has further increased revenue and improved operating margins and returns; continued to implement efficiency initiatives and reduce costs across the business.”

Macpherson added that the Speedy market share remains strong with growing revenue in water, waste, energy and transport sectors. Earnings per share increased by 23.6% to 1.10 pence, up from 0.89 pence in 2011. In addition, there was a £9.9 million increase in net book value of the hire fleet. The International division is also profitable, said Macpherson, where the company has identified areas for growth.

“The board’s focus remains on generating high quality, secure and transparent earnings across the group, from markets where capital investment is more certain. The balance sheet remains strong and we are improving the overall return on capital employed. The Board therefore remains confident of Speedy meeting its expectations for the financial year,” said Macpherson.