Speedy Hire expects first-half revenue down 20%

Speedy Hire Plc, the Newton-le-Willows-based tools and equipment hire firm, said on Friday its revenue for the six months to September 2020 is anticipated to be 20% lower than the prior year.

“Revenue has continued to improve through the period as activity levels have increased,” said Speedy Hire in a trading statement.

“For September 2020, core hire revenue in the UK and Ireland was c.7% lower than the prior year and utilisation rates for the week ended 2 October 2020 were 55.5% (2019: 55.9%).

“The Middle East business is performing in line with expectations, albeit slightly below the prior year.

“The principal contracts have been extended until 28 February 2021 and we remain in discussions with our client in relation to longer term opportunities.

“Overhead costs across the group have been tightly controlled through the period, including decisive actions taken in response to the COVID-19 pandemic.  

“We now have no staff on furlough. 

“Net debt at 30 September 2020 was c.£60m (31 March 2020: £79.3m), reflecting lower capex spend and continued strong cash collections in the first half.

“All tax payments deferred as part of COVID-19 support measures were repaid during September 2020 …

“The situation surrounding COVID-19 is likely to remain uncertain for some time.

“Further to our previous announcement on 10 September 2020, guidance consequently remains suspended.”