Speedy Hire confident of progress despite headwinds

UK tools and equipment hire firm Speedy Hire said it continues to focus on self help measures to mitigate the effects of what remains a challenging market environment.

Underlying revenues in the fourth quarter to 31 March rose 4.5% from last year, giving a full year underlying revenue increase of 5%.

Speedy expects to report pre-tax profit in line with company expectations for the year ended 31 March 2012.

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"The business continues to implement its strategy of focussing on the private and regulated markets in infrastructure, particularly the areas of water, waste, energy and transport, where we see good long term sustainable growth," it said in a company statement.

"We remain committed to securing high quality work from key clients with attractive pricing and yield dynamics in order to improve margins and return on capital."

The tool rental firm said while it remains confident of making further progress in the year ahead, it is cautious about market conditions during the early part of 2013.

Speedy said it expects the first half of the year to be impacted by one-off events including the Olympics and Paralympics, which will result in trading restrictions and disruption to construction projects in the London area for a two month period. The Queen's Diamond Jubilee celebrations will result in a reduction in trading days for the month of June, which is traditionally a holiday free period.

On an upbeat note, it believes it is well placed to take advantage of any improvements in trading conditions.

CJ