18.05.2011

Speedy edges upward

UK based Speedy hire has released its final 2010/11 results for the year to the end of March, which show revenues edging upwards on the back of a growing presence in the Middle East.

Revenues for the full year were £354.2 million an increase of just under one percent, amazingly Irish revenues improved slightly to £5.9 million – possibly helped by a stronger Euro, while the UK slipped one percent to £339.9 million and the Middle quadrupled form £2.4 to £8.4 million.

The company’s pre-tax loss before exceptionals improved from a loss of £11.7 million last year one of £6.2 this year, but after allowing for exceptional items the loss increased from £22.8 last year to £27 million.

Capital expenditure on rental equipment jumped to £41.8 million from £33.6 million the prior year, while sales of used equipment fell from £22.6 to £16.2 million.

Speedy says that while the second half of the year made up for a dreadful start and the worst of the recession has passed, it still sees the next year or two as being a challenge with rising costs and a stagnant construction market.
However it says that it is well placed for the challenges and saw the benefits of rental rate increases during the fourth quarter.
Click here to see rates up 10% at Speedy

Vertikal Comment

Speedy is a very strong and consistent performer and is likely to do well over the next two years as it focuses on what it does best and continues to expand its small overseas operations.

It has invested heavily in low level powered access equipment in the past year or so and is likely to become a stronger player in those segments of the access market where it can both excel and provide a service to its customers. It is unlikely though to be drawn in to trying to provide a full range and compete with the specialist providers in the market.