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Results confirm Speedy recovery

16 Nov 16 After a difficult year that has seen it report hefty annual losses and fight a shareholder revolt, Speedy Hire has returned to profit.

Speedy's new national distribution centre
Speedy's new national distribution centre

Speedy Hire’s interim results for the six months to 30th September 2016 show a pre-tax profit of £5.4m, compared to a loss of £13.5m for the same period in 2015 and a £57.6m pre-tax loss for the year to 31st March 2016.

Half-year group revenue was up 13% to £187.1m (2015: £165.0m) and operating profit of £8.4m was up 87% on the £4.5m made in the same period last year.

Excluding the £12.1m revenue generated by selling the heavy plant fleet to Ardent Hire Solutions, and other disposals, revenue increased by 5.2%.

As at 30th September 2016, net debt had been brought down to £85.4m, from £102.6m six months earlier.

There were exceptional costs of £1.3m relating to a restructuring of the UK & Ireland business and September's general meeting to resolve a shareholder revolt. [See previous report here.]

Chief executive Russell Down said: “These encouraging interim results confirm that our recovery is well established. We are now focused on the strategic development of the business over the medium-term and are implementing a range of customer service initiatives to ensure that Speedy is competitively positioned to grow profitable market share. Reflecting the progress the group has made, we now expect results for the full year to be ahead of the board's previous expectations.”

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