Speedy strategy marks a move into profit

The Merseyside-based tool and equipment hire firm said its surplus excluding one-off items was £4.8m in the six months to September 30, compared with a loss of £9.9m a year earlier.

It said it had successfully aligned its business with stronger customers and market segments, leading to a 2.1 per cent increase in underlying revenues in the UK and Ireland.

Speedy’s existing contracts include Welsh Water and Thames Water, while in the industrial sector it has been involved in a number of petrochemical shutdown programmes, including those for Exxon, Murco and Ineos.

Shares jumped by more than 6 per cent at one stage yesterday after the company also said it was on track to meet expectations for full-year results.

With activity at the London Olympics site now in decline, some of the company’s focus has shifted to London Crossrail, where it is well positioned due to existing agreements with contractors such as Carillion and BAM.

Speedy, which trades from more than 300 sites, added that IT investment had led to better utilisation of equipment and more focused capital spending.

Wayne Gerry, an analyst at Investec Securities, said: “Although there remains a considerable level of uncertainty over UK construction generally, Speedy is continuing to benefit from its strategy to focus on the more defensive segments of the market such as water, waste and energy.”

One-off items totalling £5.1m, including from the disposal of its accommodation hire assets, meant the group posted a bottom-line loss of £2.3m, compared with a deficit of £13.8m a year ear-lier.

In April, the company had sold its accommodation hire unit in a move to reduce its debt pile.

Speedy Hire, whose net debt fell by 32 per cent to £77m since March, maintained its interim dividend at 0.2p.

Speedy hire shares have shed 30 per cent of their value since the sale of its accommodation hire unit.