Speedy Hire in line for year

Tools and equipment for hire business Speedy Hire said trading in the last six months has been in line with company expectations with underlying revenues up 5.3 per cent from the same time last year.

Tools and equipment for hire business Speedy Hire said trading in the last six months has been in line with company expectations with underlying revenues up 5.3 per cent from the same time last year.

It added that while market conditions remain challenging it is confident of meeting company expectations for the year.

"This revenue growth, combined with an on-going focus on operational and capital efficiency initiatives, has enabled the group to improve profitability, operating margins and return on capital employed," Speedy said in a company statement.

Underlying UK revenues for the first half rose 3.2% from the same half last year

after momentum in both volume and yield offset a fall in product and customer mix. The underlying rate improvement continues, it said.

In the international division, revenue rose 77% from the same half a year earlier, driven by growth in the oil & gas sectors.

Speedy said mobilisation has started on the first phase of the ZADCO project to support the drilling activity on four artificial islands in the Arabian Gulf. This will allow land based drilling techniques to be used to exploit one of the largest offshore oil fields in the United Arab Emirates, it said.

The tool hire group said the project is expected to result in revenues to Speedy of up to US$50m over the next 5 years and will support further progress in profitability in the second half of the year.

The group said it has continued to invest in fleet to support specific areas of growth in both the UK and overseas.

Net debt at September 30th 2012 was around £83m compared to £76.3m in March 2012. During the period the group's banking facilities were extended on the same terms, by a further seven months through to August 2015.

Chief Executive Steve Corcoran commented: "Continued implementation of the group's strategy and a range of self-help measures have seen Speedy make further progress during the first half."

"Although market conditions remain challenging the board is confident of meeting its expectations for the financial year and continues to look to the future with confidence."

CJ

Recommended

The top funds to invest in
Funds

The top funds to invest in

Investors continue to favour passive funds in April though figures reveal an actively managed money market fund also caught their eye. We look at wher…
3 May 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
20 Apr 2023
Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?
Savings

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?

Two fortunate NS&I Premium Bond winners are now millionaires. Find out here if you’re one of them.
1 Jun 2023
3 renewable energy stocks to buy
Investments

3 renewable energy stocks to buy

These stocks look poised to benefit as the world transitions to a net zero economy.
31 May 2023
Housing slowdown ‘deeper than anticipated’ as property sales slump
House prices

Housing slowdown ‘deeper than anticipated’ as property sales slump

New data from HMRC shows a fall in property sales - now experts predict a delay to the housing recovery
1 Jun 2023