Speedy posts positive six months

Revenue at Speedy Hire increased by 5.2% to £171.4m (€199.3m) in the first six months of its 2016 financial year, up from £162.9m (€189.5m) in the same period in 2015.

During the period the company disposed of the majority of its heavy plant for £12.1m (€14.1m), which was included as total revenue but has been excluded from the above figure.

Operating profit shot up by an impressive 86.7% to £8.4m (9.8m), from £4.5m (€5.2m)in the previous half year. Adjusted profit before tax increased to £6.8m (€7.9m) from £2m (€2.3) in the previous period.

The company said the disposal of heavy plant was part of a plan to focus on developing core operations, and amounted to 10% of fleet reduction overall.

Net debt stands at £85.4m (€99.3m), an improvement on the beginning of the financial year when it stood at £102.6m (€119.3m). Again, this was due to the disposal of the group's heavy plant.

Commenting on the results Russell Down, chief executive, said, "These encouraging interim results confirm that our recovery is well established.

“We are now focussed on the strategic development of the business over the medium term and are implementing a range of customer service initiatives to ensure that Speedy is competitively positioned to grow profitable market share.

“Reflecting the progress the Group has made, we now expect results for the full year to be ahead of the Board's previous expectations."