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Tue May 18 2021

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Speedy turnaround completed

14 Nov 17 Speedy says its end-of-year financial results will be ahead of expectations after reporting increased profits and revenue for the first half.

Speedy chief executive Russell Down
Speedy chief executive Russell Down

Revenue (excluding disposals) increased by 6.9% for the six months to 30th September to reach £183.2m (2016: £171.4m). Total first-half revenue was £185.8m (2016: £187.1m).

Profit before tax was £6.0m (2016: £5.4m).

Chief executive Russell Down said that Speedy’s turnaround had now been completed, with full recovery from the £57.6m pre-tax loss reported for the year to March 2016. The board was now in a position to think about acquisitions again, he said.

He said: “I am pleased to report that our financial and operational performance has continued to improve during the first half of the year with results well ahead of the prior period. In line with our strategy, operating margins, before amortisation and exceptional items, have increased to 6.6% (2016: 4.5%) and ROCE [return on capital employed] has improved to 9.4% (2016: 5.1%).”

Mr Down added: “The group's turnaround has been completed and the continued performance improvement has allowed the board to consider future strategic options.  Following the recent operational restructuring, the business is better placed to cross sell to existing customers and grow services revenue.  We will reinforce our hire business, and rebalance the group through growing our services revenue over the medium term by a combination of organic and acquisitive growth.

“The group has a strong balance sheet and substantial headroom under its recently revised banking facilities. With a clear strategy for sustainable profitable growth, the board will regularly review organic growth opportunities, value enhancing acquisitions and shareholder returns to ensure it operates with an efficient capital structure.”

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