Speedy Hire H1 revenues slip
Tools and equipment hire business Speedy Hire said on Thursday that interim revenues had slipped, principally due to a drop in lower-margin services income.
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Speedy said hire revenue was consistent with H124, although lower margin services revenue was 5% lower, impacted by a decline in fuel revenues caused by a fall in wholesale fuel prices.
The London-listed group stated this had been partially offset by growth in Lloyds British testing services but still warned that revenue was "marginally down" when compared to H124.
Net debt had increased to roughly £112.0m at the half as the group sought to forward buy several hire fleet assets to support growth with key customers, resulting in a higher interest cost in H125.
"The group's trading performance in the first half has been satisfactory against a backdrop of challenging market conditions in some of the group's end markets. We remain positive about the future of these markets and also look forward to ongoing government support for major infrastructure projects," said Speedy.
As of 0920 BST, Speedy Hire shares were down 4.80% at 35.70p.
Reporting by Iain Gilbert at Sharecast.com