20.01.2009

Speedy updates half year trading statement

Speedy, the UK’s largest equipment rental company, has issued a statement updating its November forecasts for its second half, as planned, following the results of the holiday shutdown period.

It says that “spending on infrastructure related projects continues to remain buoyant in both the public and regulated sectors and, as a result, revenues from the major contracting groups remains resilient. However, ongoing uncertainty in the credit markets continues to impact overall activity and further reduce confidence in the general construction market.”

The company adds that If the current trend continues or accelerates further throughout the remainder of the fourth quarter, its revenues for the quarter would be significantly below those in the same period of 2008. This would reduce full year revenues for its year ending March 31 to the same levels as fiscal year 2007/2008. This would result in a profits before tax in the range of £33-38 million, compared to last years record of £48 million.

Speedy adds that it remains cash generative, and has an ongoing target to increase further its financial headroom by reducing net debt to below the starting position of £255.6 million by the end of the current financial year.