Speedy Hire sees FY results ahead of previous expectations

Industrial equipment rental company Speedy Hire reported a rise in first-half pre-tax profit and said it expects full-year results to be ahead of its previous forecasts.

In the six months to the end of September, adjusted pre-tax profit rose to £6.8m from £2m in the same period a year ago, as revenue pushed up to £187.1m from £165m. The group attributed the jump in revenue to increased core hire, partnered services and secondary income, as well as the heavy plant disposal in September 2016.

Earnings per shares increased to 0.81p from a loss of 2.21p the year before and the company declared an interim dividend of 0.33p per share, up from 0.30p in 2015.

As at the end of September, net debt was £85.4m versus £102.6m at the end of March, thanks to the disposal of the heavy plant and improved cash management.

Speedy Hire said it has a strong balance sheet, including headroom of £76.1m in its banking facilities, to support its growth strategy.

Chief executive Russell Down said: "These encouraging interim results confirm that our recovery is well established. We are now focussed on the strategic development of the business over the medium-term and are implementing a range of customer service initiatives to ensure that Speedy is competitively positioned to grow profitable market share.

“Reflecting the progress the group has made, we now expect results for the full year to be ahead of the board's previous expectations."