Speedy Hire trading in line with expectations

Tools and equipment hire company Speedy Hire said on Thursday that it is trading in line with the board’s expectations.

In an update ahead of its annual meeting, the group said it has continued to benefit from the positive momentum seen at the start of the current financial year.

"Trading remains strong with encouraging activity levels being seen in the market," it said. UK and Ireland core hire revenue for August was around 4% higher compared with the same period last year and 3% ahead for the year to date. Speedy said overheads remain "tightly controlled".

Asset utilisation rates have improved and for the year to date are up around 2% on 2020.

"Whilst there is some evidence of extended supply chain lead times, the group is not experiencing any material impact on hire fleet availability," it said.

Speedy Hire said it has invested around £35m in its hire fleet for the year to date in response to strong demand in certain markets, with the investment focused on sustainable products.

Chief executive Russell Down said: "I am pleased to report that our positive momentum has continued with trading remaining strong. We have significant headroom within our bank facilities which enables us to invest in our strategic priorities and take advantage of the encouraging market backdrop."

As at 31 August, the group’s net debt stood at around £43m.