16.07.2014

Strong first quarter for Speedy

UK rental company Speedy has issued a positive first quarter trading statement with revenues up 15.7 percent.

The interim management statement covers the period from 1st April 2014 to 15th July and also shows a 15.7 percent growth in revenue for its core UK/Ireland operations.

The full statement from chairman Ishbel Macpherson is published in full below:

“at a group level, revenue increased by 15.7 percent for the three months to 30 June 2014 on the same period last year. Economic and market conditions in our core markets continue to show signs of improvement, and the positive revenue trends are in line with management expectations.”

“In the UK & Ireland Division, which constitutes 94 percent of group revenues, the strategy of focusing on core hire, specialist solutions and complementary services, combined with an equal focus on all of our customer groups - strategic, major and regional customers - has delivered revenue growth of 15.6 percent (10.7 percent before planned disposals) over the same period in the prior year. We have now fully mobilised our contract with Babcock announced in February and we are progressing the award as a Preferred Bidder for a Tier 1 contract with Balfour Beatty. In addition we have won a number of new contracts with major customers. At a regional level the ‘Own City’ campaigns are already beginning to make a meaningful contribution to the Group. Whilst it is early days, we have seen good progress in all our target cities, in London and Manchester in particular we have seen growth over the same period in the prior year of 18.9 percent and 17.2 percent respectively. Additionally, our Partnered Services Division grew by 50.8% over the same period in the prior year, a result of our Integrated Services Strategy.”

“The new UK & Ireland senior management team is now in place. The reconfiguration of the depot network has seen the successful delivery of two further superstores (Coventry and Aberdeen). Further sites have now been secured and development works started as part of the accelerated plan to complete the network.”

“The new management team in the International Division is now embedded and continues to deliver on the business’ key contracts. The key focus of this team is to return the Division to profitability.”

“I am pleased to report that the company has worked hard to focus on the opportunities arising throughout the UK, and Speedy is in a good position to exploit the numerous opportunities for growth that are emerging as the market continues to recover. The board is therefore confident that the group is on track to deliver results for the full year in line with its expectations.”