Speedy Hire returns from loss to profit
Published: 18 May, 2012
NEWTON-LE-WILLOWS: Tool hire group Speedy Hire has posted pre-tax profits of £3.2m for the year to 31 March, with all of its UK operations in the black, overturning annual losses of £27m.
Speedy earnings accelerated in the second half of the year to £7.6m against £4.8m in the first half. Underlying group revenues – excluding those from its loss making accommodation hire operation, which was sold last year, and an expired Network Rail contract – were £326.4m, up from £313m in the previous 12 months.
The group reduced its net debt by £36.7m to £76.3m.
Adjusted profits before tax after exceptional items and amortisation costs, were £12.4m, up from a loss of £700 000.
Most of Speedy's group revenues were derived from its UK hire activities. It said it grew revenues in its core regulated infrastructure markets of water, waste, energy and transport, which account for 25% of overall turnover.
Speedy said it shifting from an asset supply company into a services company and has introduced training, testing, repair, inspection and maintenance services this year as part of the strategy, called 'Project Darwin'.
The company also plans to launch four superstores in 2013. Chief executive Steve Corcoran said: “While the UK economy remains fragile, our markets are now much more diverse than general construction.
“The business has an increasing exposure to the regulated and privately-funded infrastructure investment markets, and in particular those customers and end-users active in social infrastructure and the water, waste, energy and transport sectors.
Speedy operates from 300 depots and on-site facilities in Britain, Ireland and in the Middle East.