17.10.2013

Flat half for Speedy

UK general rental company Speedy Hire has issued a trading statement prior to its full half year results due in November.

During the period revenues were pretty much the same as last year, while the second quarter picked up gaining almost half a percent on the same period last year.

While no specific numbers have been given at this stage, we are told that revenues in the UK and Ireland fell by 2.6 percent in the first quarter and 1.6 percent in the second quarter, with a six month drop of 2.1 percent.

The International division, although still a small part of the whole, compensated with first half revenues up 28.5 percent. During the period Speedy also opened its first location in Qatar and has stepped up its focus on the oil & gas industry in the Middle East and North Africa.

Chief executive Steve Corcoran said: "Whilst the UK market, particularly in construction, remains challenging, our strategy to diversify the group's revenues to secure both hire and service agreements from companies in non-construction related activities and internationally in the MENA region is generating results. With an improving trend in the UK and Ireland in Q2 and a strong H1 performance in the International division, the Group continues to trade in line with the board's expectations and remains well positioned to benefit from the future UK recovery supported by a conservative balance sheet."

Vertikal Comment

There is not really enough to comment on at this stage, although it can be seen how important the new international division is becoming. In the UK the company has undergone a great deal of restructuring in the past couple of years which is still 'bedding in'. The improving UK market should help it to smooth out any bumps in the structure that may still exist.