Speedy Hire spends £120m on new kit
Published: 15 February, 2011
NEWTON-LE-WILLOWS: Speedy Hire plans to spend £120m replacing its construction equipment rental fleet during the next three years.
The hire giant confirmed its investment plans in a City update today in which it reported an 8.8% jump in revenues during the last quarter of 2010 despite the poor weather.
Speedy group revenue was up 2.1% compared to last year. The increase in business came as Speedy concentrates on growth markets such as water, waste, energy and transport.
Average hire rates continued to rise for the third consecutive quarter.
The statement said: "Based on the current age profile of the Group's hire fleet, it is estimated that the replacement cost of fleet reaching their UEL's (useful economic lives) over the next three years is approximately £120m, equivalent to approximately 51% of the current net book value of the hire fleet.
"The Board considers that Speedy is well placed to benefit from the market recovery when it comes."