Speedy Makes A Progress

Speedy Makes A Progress

Speedy Hire, Newton-le-Willows, Merseyside, England, says in spite of challenging macro-economic conditions, the company continues to make positive progress. Underlying revenue in the second quarter is expected to be ahead by about 4.1 percent against the same period in the prior year accompanied by a substantial increase in profitability. The board remains confident that the Group will meet its expectations for the full year.

In the U.K. & Ireland Asset Services division, underlying revenue for the second quarter was up 2.1 percent year-on-year as the company says it continues to win market share. Against a backdrop of on-going uncertainty in the U.K. economy, Speedy says it continues to target sustainable, profitable revenue with a commitment to maximize the return from the existing hire fleet investment, accompanied with selective capital investment. As a result, in the U.K., the second quarter increase in year-on-year revenue arose principally from a continued improvement in yield which was up 5.5 percent on the same quarter in the prior year, driven by a 7.8 percent growth in hire rates, offset by volumes which were 2.9 percent lower, which is, in part, a consequence of actively turning away unprofitable business.

The Group announced that Morgan Sindall Plc formalized its trading relationship with Speedy by entering into a five-year strategic partnering agreement.

The company says prudent cash management has ensured that net debt was further reduced to about £77.0 million (US$119.5 million) on Sept. 30, 2011.

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