Speedy Hire Revenues Flat as Infrastructure Work Increases

Nov. 13, 2013

The U.K.’s largest equipment rental company Speedy Hire posted fiscal first-half revenue of £169.8 million (about U.S. $272.2 million), essentially flat year over year with a 0.4-percent rise from £169.1 million in the same period last year. EBITDA decreased by 2.7 percent to £32.7 million (about U.S. $52.4 million), compared to £33.6 million a year ago.

Profit before tax increased slightly to £5.3 million, compared to £4.7 million a year ago.

Speedy noted strong growth in infrastructure, with revenue from the U.K.’s top infrastructure customers increasing by 31 percent. The group is well positioned and growing revenue in its targeted markets of water, waste, energy and transport. The full mobilization of its National Grid contract will provide Speedy with strong momentum into the second fiscal half.

Speedy is planning to continue its acceleration of its branch network and logistics strategy plan based on the success of its multi-service centers. Its international division continues to make good progress, the company said, and is investing in a joint venture in Kazakhstan.

“In the first half of the year, Speedy has battled with continued challenging market conditions in the construction sector in particular,” said Speedy chairman Ishbel Macpherson. “Whilst we see some signs of recovery in the sector, beyond house-building, we don’t expect to benefit from it in the current year. That said, a series of new contract wins and the full mobilization of the National Grid contract in H1 have made us confident about our momentum going into H2.”

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