Speedy Hire hails restructuring benefits as it posts annual loss

Shares in Speedy Hire were up almost 5% this afternoon after it posted an impairment-dented set of full year results, but confirmed it was beginning to respond positively following a period of restructuring.

The tools, equipment and plant rental company posted a full year pre-tax loss of £57.6m, from a year-ago profit of £2.1m. FY dividend was held at 0.7p a share, including a final payment of 0.4p.

The loss included an impairment of £59.9m, which comprised £45.9m of goodwill, £7.7m of restructuring costs, £5.5m of bad-debt provisions in relation to a Middle East debtor and £0.8m relating to losses on disposals of assets in the Middle East.

Speedy's revenue was in line with its revised expectations and down 12.2% to £329.1m, from £375.0m, with both its UK & Ireland and International operations experiencing double-digit falls.

"We have restructured the business, cut overheads to more closely align them with revenues, enhanced the management information generated from our systems and improved our cash performance,” said chief executive Russell Down.

“We are now starting to see an improvement in our culture and greater efficiencies throughout our operations,” he said in a results statement.

"The business is starting to respond positively to the actions we are undertaking. With a renewed focus on sales, tighter overhead control and better management information with which to manage return on capital we are creating a solid platform for the future.”