Speedy H1 revenue hits £215m, but outlook hits shares

Speedy Hire plc, the Newton-le-Willows-based tools and equipment hire firm, reported that its profit fell in the first half of the year amid inflationary pressures on its cost base.

The firm reported a “cautious outlook amidst macroeconomic uncertainty.”

Shares in Speedy Hire fell almost 8%.

The firm’s statutory pretax profit fell 7.7% to £13.2 million in the six months that ended September 30.

Statutory revenue increased 13.9% to £214.8 million, helped by a strong performance in its re-hire business alongside fuel and energy sales.

However, its cost of sales rose to £97.9 million from £80.6 million while it also faced larger distribution and administrative costs, which grew to £102.1 million from £90.6 million.

Speedy Hire’s net debt increased by 81% to £86.7 million. It said this reflected its £20.3 million share buyback scheme.

Speedy Hire said it remained confident for its full year results.

The firm also declared an interim dividend of 0.80 pence per share, increasing from 0.75 pence year-on-year.

Speedy Hire’s new CEO Dan Evans said: “Revenue growth is continuing with new contract wins, the effect of actions taken on price and a healthy pipeline of customer activity which gives confidence for further growth in the second half.

“Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, I take over as chief executive at a time when our business is performing well, is resilient and positioned to manage changes in market conditions.

“We remain confident of delivering results in line with the board’s expectation for the full year.”


Reporter: Greg Rosenvinge

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