12.11.2013

Speedy lifts profits on flat revenues

UK based rental company Speedy has reported its half year results with higher profits on flat revenues.

Total revenues for the period were £169.8 million, up just under half a percent on the same period last year, while pre-tax profits improved 12.5 percent to £5.3 million.

Revenues from its main operations in the UK and Ireland slipped just over one percent to £158.8 million, with operating income just over two percent lower at £11.6 million. Meanwhile revenues from its growing international operations increased over 29 percent to £11 million, with operating income increased by 33 percent to £400,000 this after £300,000 costs for mobilisation on the second Zadco island, establishing a presence in Qatar and initial costs for the Kazakhstan joint venture.

Total capital expenditure for the period was £47.9 million – 16 percent higher than for the same period last year, of this £34.5 million was spent on new equipment for the rental fleet - 21 percent higher than in 2012. Equipment disposals totalled £8.1 million, compared to £9.1 million last year.

The company has also confirmed the appointment of Andy Wright as managing director of its Middle East 7 North Africa operations effective this week 12 November 2013 See Andy Wright leaves Lavendon – September 6th At the same time it has appointed Mark Rogerson as chief operating officer.

Chairman Ishbel Macpherson said: “In the first half of the year Speedy has battled with continued challenging market conditions, in the construction sector in particular. Whilst we see some signs of recovery in the sector, beyond house-building, we don’t expect to benefit from it in the current year. That said, a series of new contract wins and the full mobilisation of the National Grid contact in H1 have made us confident about our momentum going into H2.”

“The International division made good progress in H1 and this will continue into H2 as further Zadco islands mobilise. We therefore remain confident that the Group continues to trade in line with management expectations for FY14.”

“Looking further out, we continue to take further steps to build the business for the future. We have strengthened the management team, expanded our international footprint through a joint venture in Kazakhstan and decided to accelerate our UK depot and logistics strategy.Our foundations are strong, our opportunities exciting and we are well positioned to enjoy the benefits of any economic recovery in the UK.”