Speedy Hire buys GPH for £20.2m; FY seen in line

Tool and equipment hire services firm Speedy Hire said on Tuesday that its full-year performance was set to be in line with expectations after a "satisfactory" first half, as it announced the acquisition of Green Power Hire Limited (GPH) for £20.2m.

In an update for the half to 30 September, the company said revenue from its national customers grew 5% on last year. This was offset by softer revenues from regional customers, but Speedy said it’s seen recent improvement in both of these areas.

As in prior years, the company expects a second-half weighting to its hire revenues and profits, as the winter programmes begin and new contracts extended and won fully mobilise in the period.

"In addition, Speedy has a strengthening pipeline of new opportunities going into the second half of the year," it said. "Consequently, the group anticipates full year performance to be in line with expectations."

Speedy expects service revenues to be lower, mainly due to a drop in the wholesale price of fuel, which is down around 20% versus the same period a year earlier. However, this has not materially impacted margin, as direct costs fall proportionately, it said.

The company also announced the acquisition of sustainable power solutions specialist GPH, which owns and supplies Battery Storage Units to the UK rental market, mainly to the construction sector.

Chief executive Dan Evans said: "The acquisition of Green Power Hire is further evidence of our Velocity strategy in action, strengthening our market leadership in combining product innovation and sustainability, and positioning Speedy well in a high growth segment of the market.

"Alongside investments such as our partnership with Niftylift and our proposed JV with AFC Energy, the acquisition progresses the sustainable and technological evolution of the sectors we operate in, supports our ambitious plan to become a net zero business by 2040 and will deliver long term benefits to our customers, our people and our investors."

Velocity is the company's five-year transformation and growth strategy, which was launched earlier in the year.