Bounce back for Speedy
UK rental company Speedy has reported revenues and profits back to pre-Covid levels.
The company has reported a 16.3 percent increase in revenues for the year to the end of March to £381.7 million. Pre-tax profits more than tripled from £8.3 million last year to £29.1 million this year. Capital expenditure on the rental fleet was £70 million almost double last year’s spend and the highest since 2019, while net debt more than doubled to £67.5 million.
Chief executive Russell Down, who is due to retire this year said: “We have made an encouraging start to FY2023 with volume growth and price increases more than offsetting cost pressures and the board remains confident that we will meet its FY2023 expectations.”
“I am pleased with the results that we have reported today which are in line with our expectations. Our revenue and profits have grown significantly, demonstrating the strength of our customer value proposition. Revenues have recovered post COVID-19 and for the UK and Ireland business are now ahead of the year ended 31 March 2020. Whilst the economic environment is uncertain, our end markets are positive with significant growth projected in major infrastructure and energy projects including HS2 and nuclear. Our rail business has continued to expand through winning market share from new and existing customers on HS2, CP6 and more widely. In the housebuilding market we continued to see strong demand and growth in the year.”
“The group has implemented price increases, following product and customer reviews, to offset inflationary cost pressures on both overheads and new equipment purchases. We have improved our governance and reporting in this area which will facilitate improved margins and the ability to implement more dynamic pricing models.”
“Our investment in developing a retail business in partnership with B&Q has continued. We were pleased to formalise an agreement with B&Q in September 2021 and now have a presence in 36 of their stores and online.”
This is a very positive result from Speedy which continues to make progress both in powered access and lifting gear. It looks now to be on track to exceed sales of £400 million for the first time this year, and the fact that it has significantly diversified its offering should service it well over the next few years. While net debt has increased substantially, it follows sharp reductions during the pandemic and remains relatively low. It is good to see that capital expenditure has picked up again and is now back to pre-Covid levels.