19.05.2010

Speedy sees improving trend

The UK’s largest equipment rental company Speedy has reported its full year results to the end of March., total revenues were £351.1 million, 27.3 percent lower than last year. Of the total £3.7 million came from business outside of Ireland and the UK.

The company substantially reduced its pre-tax loss from £71.1 million last year to £22.8 million in the year just ended. Looking forward Speedy says that around £280 million of Speedy’s revenues now come from companies that have signed a supply contract. It also notes that the decline in revenues is now slowing and that in the fourth quarter sales slipped just over 12 percent.

During the year net debt was cut in half and now stands at £119.3 million, the company sold £22.6 million of used equipment from the fleet .

Chairman David Wallis said: “The more stable levels of recent trading are encouraging, which may indicate that economic activity in our markets is bottoming out, but we are under no illusions that there remain many difficult months ahead. The short term focus will remain on cash generation, whilst running the business as efficiently as possible in a demanding market. I am confident that we have adopted a strategy which will serve our shareholders well in both the short and longer term. As activity levels improve, your business is in good shape to capitalise on the recovery.”


“Although we have seen a more stable trading environment over the last six months, levels of activity in the construction and industrial markets remain subdued and uncertainty over the number and size of public sector projects will persist until the government is able to give clear guidance. As a result, we will continue to run the business cautiously. Our short term focus will remain on cash and costs, whilst ensuring that we do not compromise our ability to service our hard won customer base.”

Chief executive Steve Corcoran in his statement said:
“Throughout the past financial year we have consolidated our market leading position with clients in the UK. In the year we have secured over 212 new or renewed awards, with a projected value of £170 million, including recent contract wins with Costain Plc, Galliford Try Plc and Wilmott Dixon, together with secured agreements with Connaught Plc and Spice Plc in the UK and Al Futtaim Carillion in the UAE.”

“Whilst sensitivity remains in respect of the future outlook for some of the markets that we serve, the early and determined action undertaken by management has ensured that the business is now very strongly placed to benefit from the eventual upturn.”

“Over the longer term our strategy is to position Speedy as an international service provider. This will be achieved by building upon the trusted relationships established over 33 years serving construction and industry. Our clients hire to mitigate the risks that they associate with the financial liability, operational management and compliance risk of ownership. They choose Speedy because we have the fleet quality, the operational network and the product range, together with a commitment to health & safety, sustainability and quality, that best supports their objectives.”

However, in isolation hiring does not remove all risk. If hired equipment is given to someone inadequately trained in its use they could break it, fail in their task or cause injury to themselves or others; effectively exchanging one risk for another. Speedy has instigated the offer of training and consultancy services to
complement the use of the hired asset.”