Speedy Hire’s International Growth Fuels Fiscal Second-Half Growth

Oct. 19, 2012
Speedy Hire, the U.K.’s largest equipment rental company, has posted a 5.3-percent revenue increase in its fiscal second half compared to its fiscal first half, the company said in its announcement of interim results for the six-month period ended Sept. 30.

Speedy Hire, the U.K.’s largest equipment rental company, has posted a 5.3-percent revenue increase in its fiscal second half compared to its fiscal first half, the company said in its announcement of interim results for the six-month period ended Sept. 30. The revenue growth, combined with an ongoing focus on operational and capital efficiency initiatives, has enabled the group to improve profitability, operating margins and return on capital employed.

The company said in the U.K. it has maintained its focus on the regulated industries and markets supporting social and economic infrastructure, especially in the areas of water, waste, energy and transport. Underlying U.K. revenues for the first half increased 3.2 percent compared to Speedy’s fiscal first half, with increases in volume and yield, offset by decreases in product and customer mix.

Speedy’s International Division, however, posted a 77-percent increase compared to the first half, predominantly driven by Speedy’s growing presence in the oil and gas sectors. Mobilization has begun on the first phase of the ZADCO project to support drilling activity on four artificial islands in the Arabian Gulf that will allow land-based drilling techniques to be used to exploit one of the largest offshore oil fields in the United Arab Emirates. The project is expected to result in revenues of up to U.S. $50 million for Speedy over the next five years and will support further progress in profitability in the second half.

The company has continued to invest in fleet to support growth areas in the U.K. and abroad, funded primarily through the business’ cash generation. Speedy also extended the group’s banking facilities on the same terms for an additional seven months through August 2015.

“Continued implementation of the Group’s strategy and a range of self-help measures have seen Speedy make further progress during the first half,” said Speedy Hire chief executive Steve Corcoran. “Although market conditions remain challenging, the board is confident of meeting its expectations for the financial year and continues to look to the future with confidence.”

Speedy Hire Plc is based in Newton-le-Willows, Merseyside, U.K.