Speedy Hire, the United Kingdom’s largest equipment rental company posted a 5.6-percent increase in its fiscal first quarter ended June 30 compared with the previous year, Speedy said in a trading update. The company said that despite being affected by the Easter break, May bank holidays and the Queen’s Jubilee, the new financial year began satisfactorily, with the first quarter performance being in line with management’s expectations.
“Against the backdrop of ongoing uncertainty in the construction sector, the Group’s key growth areas of water, waste, energy and transport continue to offer opportunities for the business,” the company said.
Within the U.K. and Ireland Asset Services division, which contributes more than 95 percent of the group’s revenues, underlying revenues increased 2.5 percent year over year. U.K. yields dropped marginally as a result of increasing volumes and rates being offset by decreases in product and customer mix changes.
The International Division, on the other hand, started strong, with revenues rising by 61 percent compared to the previous year’s first quarter, driven predominantly by continued growth in oil and gas projects across the Middle East region and in Abu Dhabi, United Arab Emirates, in particular. The recently announced $50 million, five-year asset management and services support awarded to Speedy by ESNAAD is a key development for the business and illustrates well the potential for revenues in that region.
Speedy has continued to manage capex effectively, the company said, and management remains focused on generating strong cashflow within the business. “We have continued to invest in our hire fleet where there is demand from our customers for our services and in particular have strengthened the fleet in the areas of power generation, compressors and low-level access,” the company said.
Speedy expects the Olympics to impact trading in the fiscal second quarter, but the company still expects “steady progress through working closely with our key customers, cautiously investing in our fleet, developing our property base and driving further efficiencies through the business.”
Speedy Hire is based in Newton-le-Willow, Merseyside, U.K.