Speedy Hire upbeat on performance
Published: 16 February, 2010
NEWTON-LE-WILLOWS: Tool hire company Speedy Hire shares increased by 5.3% yesterday with an upbeat interim trading statement.
The company reported trading had stabilised. January revenues were 24% below January 2009 level but were in line with expectations.
That compared well with December, which was 28%, and October, which was 36% down.
Speedy Hire signed a new two-year preferred trading agreement with Costain to supply tools, equipment and training services. It is looking to win new business in sectors including petrochemical, infrastructure, and mainstream construction.
Core clients generated more business with turnover from the top 50 UK contractors accounting for 28% of turnover against 24% a year ago.
Net debt reduced to approximately £141m, compared to £248m at the start of the financial year, and the company anticipated it would cut debt to £125m by the end of the financial year.
Speedy Hire said in it statement that it is "well placed both to take advantage of the eventual upturn in the market and to capitalise on the relative weakness of some of its competitors.
"Overall activity appears to be stabilising and Speedy is thus able to look forward with cautious optimism."
It said if the current recovery continued its results for the year, to be announced at the end of March, would be in line with its expectations.