Speedy Hire revenues grow as activity levels increase

Tools and equipment hire group Speedy Hire said on Thursday that revenues had continued to improve over recent months as customers returned to work following Covid-19-related shutdowns and activity levels increased.

Speedy said utilisation rates had improved "steadily" throughout the first half, as activity levels increased, hitting 52.9% in the UK and Ireland - a slight drop from the 54.6% posted a year ago.

Overhead costs were "tightly controlled" as a result of the coronavirus pandemic, with the group reducing staff numbers and permanently closing depots.

As a result, Speedy said it had a "strong balance sheet and substantial unutilised banking facilities", with net debt reducing from £79.3m at the year-end to £59.4m as of 31 August.

Speedy also noted that it anticipates no staff will remain on furlough beyond 30 September and that other tax payments deferred as part of Covid-19 support measures would be paid by the end of the month.

Chief executive Russell Down said: "We are pleased to report that in recent months we have seen an ongoing recovery in trading as customers have returned to work.

"The decisive actions we have taken during the pandemic to enhance the resilience of our business and the strength of our balance sheet leave us well placed to respond to improving trends and pursue our strategic objectives."

As of 0955 BST, Speedy shares were up 1.62% at 53.25p.