Speedy Hire, the U.K.’s largest equipment rental company, posted £340.3 million (about U.S. $516.3 million) a 4.3-percent year-over-year revenue increase in fiscal 2013, ended March 31. Speedy’s adjusted profit before tax was £16.8 million, a 35.5-percent increase compared to £12.4 million in fiscal 2012. Business was particularly strong in the second half of the year, with adjusted profit in the second half of £10.2 million, compared to £6.6 million in the first half.
Investment in the rental fleet continued for Speedy with net book value increasing to £214.5 million compared to £210.3 the previous year. At the same time Speedy Hire was able to reduce debt.
Speedy Hire has continued to shift emphasis into the industrial market, and revenues from non-construction activity accounted for more than 50 percent of group income in the fiscal year. Its focus on key clients and significant contracts helped the company outperform the U.K. construction market.
“These results illustrate the impact that proactive management action over the last few years has had on Speedy’s business,” said Ishbel Macpherson, Speedy chairman. “Our focus on the right customers, in the right markets and on the right type of work has enabled the Group not only to grow revenue, but to do so at improved margins and levels of profitability, whilst improving cash flow and our ROCE. Although there is still more to do, the continuing focus on quality and service throughout the Group through a range of self-help measures is differentiating our business both in the U.K. and international markets and underpins the transformation of Speedy from a hire to a service company.”
The company has refreshed its fleet, invested to improve IT infrastructure, refined its property portfolio and extended its £220 million asset-based revolving credit agreement with a syndicate of six banks.
“Our strategy and actions have been instrumental in generating this year’s momentum and have laid the foundations for future growth,” added Macpherson. “Although there is still uncertainty in the economy, and the U.K. construction sector in particular, we are confident that the actions we have taken have increased our resilience and given us a solid platform upon which to build.”
In the past year, Speedy has secured a number of managed services contracts, developing a service-based offering. The contracts incorporate additional services such as training; test, repair inspection and maintenance; and other partnered services, in the U.K. and in the Middle East.
Speedy Hire is based in Newton-le-Willows, Merseyside, U.K.
