20.07.2010

Speedy cautiously optimistic

Speedy, the UK’s largest rental company will issue a positive trading statement at its AGM later today.

Speedy chairman David Wallis will say that whilst market conditions remain challenging, revenues, excluding equipment sales, for the quarter to the end of June were close to those of last year and showing steady underlying improvement.

Revenues in June exceeded £30 million for only the second time since July 2009 with both volume and average rental rates improving, particularly in the
smaller tools and equipment area.

Wallis will say:” Whilst we are still early into our new financial year, given performance to date the board confirms that the group is trading broadly in line with its expectations for the year in respect of adjusted profit before tax. The outcome of the UK Government’s Autumn Spending Review and the timing of any recovery within private sector construction will, however, be critical determinants of the future outlook for the business. In view of the uncertainty around these areas, we continue to take a cautious view about recovery prospects in the UK for the remainder of this year and next and continue to position the business accordingly, concentrating on the ‘3 C’s’ of cash, costs and capex.”