Speedy says turnaround complete as profitability returns

Speedy Hire in the UK said it had completed its turnaround as it announced much improved financial results for the uyear to 31 march 2017.

Revenues were up 12.2% to £369.4 million and pre-tax profits were £14.4 million compared to a £57.6 million loss in 2015.

The company said it was now ready to pursue further growth either through acquisitions or organically.

Speedy managed the improved results despite reducing the size of its fleet by 11.4%, achieving higher utilisation rates – up by 7% to an average of 51.5% for the year - and improving equipment availability.

It also reduced its net debt during the year to £71.4 million from £102.6 million, helped by the disposal of its heavy plant for £14.4 million to Arden Hire in September 2016.

Gross capital expenditure of new fleet for the year was £40.5 million, down from £57.8 million in the previous year.

Speedy has managed to renew or extend major contracts in the UK with Carillion Plc, Babcock and Morgan Sindall Plc, and said that despite “some market uncertainty in the lead up to Brexit and the general election we are now well placed to deliver sustainable profitable growth.”

Speedy’s international businesses also saw improvements. Revenues in Abu Dhabi, where it has oil and gas customers, were up 29.9% to £26.5 million (up 12.7% on a constant currency basis), while its joint venture in more than doubled profits to £1.7million from £0.7m.

Russell Down, Speedy’s Chief Executive, said: “These results demonstrate the success of our turnaround plan with significant improvements across all financial and operational performance measures.

“Whilst we have made a solid start to the year, the market remains competitive. With the business now stabilised and a strong balance sheet, we are well positioned to take advantage of market opportunities and continue to deliver sustainable profitable growth.””