In a trading update today Speedy said that its results for the year ending 31st March 2018 – to be posted in May – will be better than previously expected, aside from the £2m hit it is taking from Carillion not paying its bills.
The Speedy hire fleet has been reduced in line with the company’s optimisation programme, increasing average utilisation from 51.1% to 55.4%. Return on capital employed for the year is expected to be 11%, up from 7.7% in the previous year.
As a result of a renewed focus on both SME customers and services revenues, and despite the recent liquidation of Carillion, full year revenues before disposals are expected to be approximately 6% ahead of fiscal 2016/17’s £369.4m total.
Adjusted profit before tax for the year is expected to be ahead of the board's previous expectations, the company said.
In 2016/17 Speedy made a pre-tax profit of £14.4m, compared to a £57.6m loss the year before.