17.07.2012

Speedy trading statement

UK based rental company Speedy Hire will provide a trading update for the three months to the end of June at its Annual General Meeting today.

The statement indicates a 5.6 percent revenue growth, with the UK/Irish rental business which makes up over 95 percent of revenues, up 2.5 percent while its Middle East division improved 61 percent and moved into the black for the first time.

The full statement is as follows:

"The new financial year has begun satisfactorily and first quarter performance remains in line with management expectations. Despite the quarter trading being affected by the Easter break, May bank holidays and the Queen's Jubilee, underlying group revenues in the three months to 30 June 2012 are up 5.6 percent on the same period last year.”

“Against the backdrop of on-going uncertainty in the construction sector, the Group's key growth areas of water, waste, energy and transport continue to offer opportunities for the business and provide management with confidence that Speedy will continue to make further progress in the current financial year.”

“Within the UK & Ireland Asset Services division, which constitutes over 95 percent of group revenues, underlying revenues were up 2.5 percent on the same period last year. During the period, UK yields were marginally down as a result of increasing volumes and rates offset by decreases in product and customer mix changes.”

“The International Division has seen an encouraging start to the year, with revenues for the first quarter some 61 percent ahead of the equivalent prior year period, driven predominantly by continued growth in oil and gas projects across the Middle East region and in Abu Dhabi in particular. Having moved to a break-even position during the second half of FY12, the business is now trading profitably at an operating profit level and is on track to make further progress during FY13.”

“The $50m, five year asset management and service support contract awarded to Speedy by ESNAAD is a key development for the business and illustrates well the potential for this part of the Group in the future.”

“During the period Speedy has continued to manage capex effectively and management remains focused on generating strong cash flow within the business. We have continued to invest in our hire fleet where there is demand from our customers for our services and in particular have strengthened the fleet in the areas of power generation, compressors and low level access.”

“As previously announced, we expect the Olympics to impact on trading in the second quarter. However we continue to make steady progress through working closely with our key customers, cautiously investing in our fleet, developing our property base and driving further efficiencies through the business. With its market leading position, strong balance sheet, and continued focus on self-help and growth markets, the Board remains confident that the Group is well positioned for the future."