Speedy Hire, the United Kingdom’s largest rental company, posted a pre-tax profit increase of about 18.6 percent for the fiscal year ended March 31, with profits rising from £30.7 million (about U.S. 61 million under current currency conversion rates) the previous year to £36.4 million (U.S. $72.2 million).
Volume jumped an even more impressive 31.9 percent to £335.5 million (about U.S. $666 million).
Speedy Hire has two divisions: tools and equipment. Revenue growth in tools was 16.2 percent, while equipment rental revenue leaped 54.5 percent, on the strength of same-store growth plus additions from acquisitions that cost the company nearly £70 million. Speedy’s two major acquisitions were Lifting Gear Hire and LCH Generators.
Speedy Hire is broadening its activities to include health and safety training and fuel management. The company also recently expanded its activities into new areas such as events, petrochemicals and telecommunications. Speedy has also expanded geographically, going beyond the U.K. by opening a facility in Dublin. “The Irish market holds enormous potential for Speedy,” said chief executive Steve Corcoran. “Investment in Irish infrastructure is estimated at £67 million over the next six years.”
“We have seen strong performance in all our key metrics and momentum in the business remains strong,” said chairman David Wallis. “Health and safety legislation together with customer requirements for supply chain improvements continue to provide an increased impetus towards the hiring of tools and equipment.”
Corcoran said the company invested £83 million in new rental fleet, “enabling us to maintain the youngest tool fleet, with an average age of 2.2 years.” Corcoran added that he expected the U.K. “hire” market to grow by 19 percent between now and 2010, driven by high levels of activity in the construction market.
Highlights for Speedy during the past year included the opening of 10 greenfield start-up rental branches along with an additional 14 on-site depots on the sites of construction companies.
