22.11.2006

Speedy up 29%

Speedy Hire - one of the UK’s leading rental companies specialising in tools, lifting gear, generators and general equipment – has increased its revenues for the six months to September 30th by 28.7 percent to £154 million. Pre tax profits for the period increased by a more modest 19.3 percent to £15.5 million.

Operating margins at 13.9 percent were slightly down on last year due, says the company to short term losses in its new pumps business and its expansion into Ireland.

Like for like tool hire revenues increased by eight percent to £80.8 million, compared, says the company to a market growth or around four to five percent. Organic growth was boosted by the opening of eight, new ‘green field’ depots.

Speedy’s £13.5 million acquisition of Lifting Gear Hire - the leading provider of lifting gear occurred in October and thus had no effect on these results.

Speedy’s Equipment division consisting of Power, Lifting, Space, Survey and the newly formed Pumps business, increased revenues by 50 percent to £76.3 million with operating margins of 18.5 percent, slightly down on last year, but profits were up £4.5 million to £14.1 million, while utilisation was up by over a percentage point to 67.7 percent.

The company spent £25.5 million on equipment replacement and £17.8 million on fleet expansion over the past six months.

The £59.0 million acquisition of LCH generators earlier in the year has however increased its gearing to 111.6 percent with net debt of £171.9 million.

“The key drivers of our business remain positive,” said David Wallis, chairman. “Construction output forecasts for the next few years are highly encouraging with PFI projects increasing once again. Our key customers continue to be optimistic and report full order books for some years ahead.”