The United Kingdom’s largest rental company Speedy Hire last week said its first-quarter revenue grew 36.4 percent year over year, with strong growth in both its divisions. The company’s Tool Hire division jumped 46 percent, while its Equipment Hire revenues rose 31.2 percent, aided by acquisitions of Amec LSS and Carillion Asset Management.
The company said revenues in equipment hire would have increased 10.1 percent without the acquisitions.
Speedy Hire fared particularly well with its larger customers, posting a 53.6-percent revenue growth from its 50 largest contractor customers. Higher infrastructure spending in the public sectors, more inclination towards outsourcing, and customers’ enhanced focus on supply chain efficiency and quality were all contributing factors towards growth among larger customers, Speedy officials noted.
However, Speedy said it is beginning to see a deterioration in spending from smaller trade customers because of a slowdown in demand from construction-related areas such as home building, commercial office development and non-food retailing, sectors which it expects will remain weak for the foreseeable future.
Speedy is confident of further growth this year, provided there is no material change to the overall market view. Speedy expects growth opportunities in the industrial sector, primarily petrochemical, pharmaceutical, steel, nuclear and rail sectors. Speedy also expects to benefit from large infrastructure projects such as the Olympics and construction work in education and social housing.
Speedy Hire will announce its interim results Nov. 27 and its next trading update Oct. 8.
Based in Newton-le-Willows, Merseyside, England, Speedy Hire has more than 500 branches throughout the U.K. and the Republic of Ireland.
