Speedy Hire Q1 revenues rise, new chairman appointed

Equipment rental company Speedy Hire reported a rise in first-quarter revenue on Thursday as it announced the appointment of a new chairman.

First-quarter revenue was up 6.6% on the previous year, pre disposals, with hire revenue and services revenue 5.5% and 8.4% higher, respectively. In the UK and Ireland, hire revenue increased by around 1% on a like for like basis and Speedy said the international business continues to perform well, with a strong pipeline of opportunities.

During the quarter, Speedy invested around £15.2m on new equipment for hire, up 4% on the year before.

Net debt at 30 June 2018 of £67m was lower than the £69.4m at year end, while return on capital employed for the 12 months to the end of June was 11.8% versus 8.4% a year earlier.

The company said it remains on course to deliver full-year results in line with the board's expectations.

Also on Thursday, Speedy Hire said David Shearer will succeed Jan Astrand as chairman with effect from 1 October. Shearer has been a non-executive director since September 2016 and a member of the Audit and Nomination Committees since November 2016 and of the Remuneration Committee since March 2017.

Astrand said: "I am pleased to welcome David to the role of chairman. He is a valued member of Speedy's board, with considerable external experience. I am confident in his ability to lead the board in building on the solid foundation established during Speedy's recovery and helping achieve the next stage of its growth."

Liberum said the statement provides further evidence that Speedy continues to successfully execute its strategy. "As well as confirming that the robust revenue momentum experienced in 2H18 has continued into FY19, the company also continues to outperform in relation to working capital management.

"The associated deleveraging of the balance sheet and the optionality being built in the international business provides it with the potential to deliver continued improvements in both return on capital employed and cash trreturns. With 25% total shareholder return potential we reiterate our buy rating."

At 1310 BST, the shares were up 2.2% to 61.88p.