18.04.2012

Speedy up five

UK rental company Speedy Hire has issued a trading update in advance of the publication of its full year results next month.

The company says that underlying revenues will be up around five percent, with profit before tax in line with forecasts. It has also cut net debt by a third to £76.3 million. In spite of increasing capital expenditure by around £19 million.

The statement is as follows: “The business continues to implement its strategy of focussing on the private and regulated markets in infrastructure, particularly the areas of water, waste, energy and transport, where we see good long term sustainable growth. We remain committed to securing high quality work from key clients with attractive pricing and yield dynamics in order to improve margins and return on capital.”

“We have continued our focus on self-help measures to mitigate the effects of what remains a challenging market environment, with further progress made in the reconfiguration of the network, to drive improvements in operational efficiency, customer service and product availability.”

“The Board remains confident of making further progress in the year ahead although we remain cautious about market conditions during the early part of FY2013. We expect the first half of the year to be impacted by one‐off events including: the Olympics and Paralympics, which will result in trading restrictions and disruption to construction projects in the London area for a two month period and the Queen’s Diamond Jubilee celebrations, which will result in a reduction in trading days for the month of June, which is traditionally a holiday free period.”

“Nevertheless, with its strong balance sheet, secured funding and ever closer alignment to growth sectors and major customers, the Board considers Speedy well placed to take advantage of any improvements in trading conditions when they arise.”