Shares of Speedy Hire plc, the Newton-le-Willows-based tools and equipment hire firm, rose about 4% after it announced a share buyback programme of up to £30 million and published a trading update showing its positive trading momentum of the first half year continued into the third quarter including further contract wins and renewals.

“At the time of the half year results in November 2021, the board undertook to review the medium-term capital needs of the group and consider potential returns to shareholders,” said Speedy Hire.

“The board considers that a £30 million share buyback programme is prudent, reflects the cash generative ability of the group and maintains a strong balance sheet consistent with its capital allocation policy.”

On trading, the company said: “The positive trading momentum experienced during the first half year continued into Q3 including further contract wins and renewals. UK and Ireland Hire revenue for the nine months to December was c.4% ahead of the corresponding period in FY2020. 

“Hire revenue in January 2022 to date is c.7% ahead of the corresponding period in FY2020.  

“The group has invested c.£61 million in the hire fleet for the year to date in response to strong demand. 

“Consistent with the group’s strategic goals, the investment has been focused on sustainable products.  

“Asset utilisation rates for the year to date are 57.1%; c.1.4% ahead of the comparable period in FY2020.

“The group expects to report results for the year in line with the board’s expectations.”

Speedy Hire CEO Russell Down said: “I am pleased to report that our positive trading momentum has continued with further revenue growth in Q3.  

“Market demand has resulted in increased utilisation rates, on an enlarged hire fleet following accelerated capital expenditure.

“Overall results for the year are expected to be in line with the board’s expectations.”