Speedy Hire full-year profit to beat market expectations

In an update on trading for the year, the tools and equipment hire company said revenue has improved as activity levels have continued to increase. Last month, core hire revenue in the UK and Ireland was about 2% higher than the prior year, it said, while utilisation for the period from 1 October 2020 to date was 58.7% versus 56.2%

Speedy said that underlying overhead costs remain "tightly controlled" and that it has not used government furlough or loan schemes in the second half of the year.

The company also said it has sold its equipment fleet, stock and other fixed assets relating to its Middle East business to ADNOC for $18m.

Chief executive Russell Down said: "I am pleased to report another period of momentum and resilience for the group as our colleagues have adapted and supported our customers in these challenging times. Our ongoing positive trading has benefitted from increasing activity levels and shows the strength of our strategy, people and operational delivery.

"The successful exit from the Middle East operations is an important strategic step for Speedy and we wish the whole of the ADNOC team every success in the future. Looking ahead, we are well positioned to take advantage of the market opportunities in the UK and Ireland as activity levels continue to improve."

At 0925 GMT, the shares were up 5.9% at 67.80p.