Speedy is already one of 14 equipment hire companies described as “members of the Morgan Sindall plant family” but this deal has now been formalised by entering into a five year strategic partnering agreement. Speedy supplies the contractor with tools, power and pumps.
Deals like this have enabled Speedy to grow its revenues by 4.1% in the six months to 30 September 2011, compared to the same period in 2010. It also expects to report a substantial rise in profits when its interim results are published next month.
In a trading update to the City this morning, the Speedy board said: “Against a backdrop of on-going uncertainty in the UK economy, Speedy continues to target sustainable, profitable revenue with a commitment to maximise the return from the existing hire fleet investment, accompanied with selective capital investment.”
In the July-September quarter, yield which was up 5.5% on the same quarter of 2010, driven by a 7.8% growth in hire rates, offset a 2.9% fall in volumes. Speedy said the fall in volumes was partly due to “actively turning away unprofitable business”.
The board said: “Speedy's UK trading continues to improve steadily in line with expectations, although uncertainty remains in the overall outlook for the UK economy. The group draws confidence from the order books of its key major contractor customers, the breadth of its customer base and the diversity of its end markets. Ongoing benefits from the investment in IT continue to provide Speedy with the visibility needed to pursue margin gains and also enable more effective investment of capital into the fleet.”
Morgan Sindall plant family
The full list of equipment hire partners of Morgan Sindall is: