31.05.2006

Speedy up 23%

Speedy Hire has released another set of sparkling results, which show overall revenues up 23 percent, with like for like revenues rising by nine percent. Gross margins slipped slightly from 71.6 percent to 67.8 percent of sales, but operating margins nudged up from 15.3 percent to 15.6 percent.

Speedy is concentrating a good deal of its efforts on its specialist equipment rental business, it sees this as the area that will” fuel growth over the next few years” in 2005 it made five acquisitions with a value of £35 million. The Equipment division includes: Space (cabins), Power, Lifting, surveying and Pumps.
The lifting division now operates from 33 locations.

Utilisation across the business climbed from 67 percent to 70 percent in an expanding fleet, Speedy spent £78.5 million on new equipment in 2005, which kept the average age of its fleet down to 2.1 years. One of the lowest in the UK.

22 new depots were opened in the year of which 17 were, what the company calls greenfield locations. Included in the openings was the company’s first entry into the Ireland with the opening of locations in Dublin and Belfast.

Speedy says that the outlook for 2006/07 is “Bouyant”. It also believes that the industry will see significant consolidation over the next few years, with the market becoming increasingly polarised between companies supplying the larger companies, which require a wide product range over longer periods, and those servicing the smaller businesses which require equipment in lower volumes for shorter periods.

Speedy confirms that its current market position is biased towards the larger, more regular hirer and says that its acquisition strategy will reflect this.

Chairman David Wallis said: “The markets in which our major customers operate remain buoyant and show good growth trends. New Health and Safety legislation provides additional impetus towards hiring rather than owning tools and equipment.
With a favourable outlook in our main markets, ongoing investment in strengthening and improving the business, a strong financial position and a first class team to execute our plans, I look forward to reporting further progress in the year ahead.”