11.11.2014

Stable first half for Speedy

Profits and revenues are growing at UK rental company Speedy, which has also announced that it is pulling out of day to day rental activities in the Middle East. Going forward the company will focus its efforts in the region of its contracts with the oil & gas sectors which is both growing and profitable.

The company has announced its first half results which show an 12.2 percent increase in revenues to £189.3 million, with pre-tax profits of £5.3 million, after writing off £3.7 million in exceptional costs - this compares to a pre-tax profit of £3 million last year.

Most of the revenue was generated in the UK - £176.3 million, up 11 percent on last year, with an operating profit of £16.7 million up 44 percent on last year. Overseas revenues improved 31.3 percent to £13 million but losses increased from £1.9 million last year to £3.3 million this year.

Chief executive Mark Rogerson said: "This has been a positive first half of the financial year. Whilst these results primarily reflect our self-help measures and the delivery of early efficiency improvements, we have also begun to benefit from an improving market environment in the UK, thanks to a focussed and disciplined approach to our strategic accounts and re-engagement with our regional customers.”

“While much remains to be done, not least in the Middle East, there are major opportunities ahead as the UK continues with a very significant infrastructure regeneration programme. Having stabilised the business, we can now turn our attention to differentiating Speedy through service, quality and innovation, optimising our asset base and delivering sustainable profit growth.”

“We are on-track to deliver results for the full year in line with the board's expectations and our confidence for the future is underpinned by an increased interim dividend."

Vertikal Comment

New chief executive Mark Rogerson is now getting to grips with the business and has outlined a clear strategy to take the business to the next stage, both in the UK and overseas. The UK results show very positive progress. With a number of strategy changes over the past few years, with departmental reorganisations taking place before the last one had settled down, a move towards a more stable period with a clear strategy that everyone can buy into will help the business return to its previous strength.

An encouraging set of numbers.