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Tue October 27 2020

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Speedy Hire makes first half loss and axes MD

8 Oct 10 Speedy Hire expects to post a first half operating loss when it posts its interim results for the six months to 30 September.

Speedy Hire expects to post a first half operating loss when it posts its interim results for the six months to 30 September.

In a trading update, the plant and tool hirer said it had decided to “streamline” its senior management, and has axed the managing director of its UK & Ireland Asset Services business, Claudio Veritiero. These changes will result in an exceptional charge.

Total first half turnover is expected to be 4% below the figure for the six months to 30 September 2009 (£185m).

Net debt is up at £125m (31 March 2010: £119m). As a result, net interest in the first half of the year will include an exceptional of £1.3m.

Speedy said it has won a number of important new infrastructure contracts in recent weeks, including a five-year sole supplier agreement with Thames Water to supply their tier one contractors on the £5.5bn AMP5 programme. Other contract wins include a three year framework agreement with to support their marine, nuclear, networks and infrastructure divisions.

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The international division has recently signed a three year supply agreement with Costain for the provision of equipment services on Das Island, Abu Dhabi's major offshore oil and gas complex.

Following the recent demise of Connaught, with whom Speedy had an exclusive tool and equipment hire arrangement, the hirer expects to take a hit of £1.7m. This includes a sum for debtors which are likely to remain unpaid, together with an assessment of the value of equipment on hire which may not be returned.

Summarising the outlook, Speedy said: “With our strong balance sheet, market leading position and ever closer alignment to growth markets, the business continues to be well placed to benefit from any market recovery. In particular, the group's on-site facilities on the Olympics site, growing international presence and developing non-hire activities provide grounds for confidence for the future.”

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