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(Alliance News) - Speedy Hire PLC on Tuesday reported that its profit had fallen in the first half of the year due to inflationary pressures on its cost base.
The Merseyside-based tools hire services firm's pretax profit fell to GBP13.2 million in the six months that ended September 30 from GBP14.3 million in the same period last year.
Revenue increased by 14% to GBP212.4 million from GBP186.6 million in the previous year aided by a strong performance in its re-hire business alongside fuel and energy sales.
However its cost of sales rose to GBP97.9 million from GBP80.6 million while it also faced larger distribution and administrative costs, which grew to GBP102.1 million from GBP90.6 million.
Speedy Hire's net debt increased by 81% to GBP86.7 million in the six months that ended September 30 from GBP47.9 million in the previous year. It said this reflected its GBP20.3 million share buyback scheme.
Speedy Hire said it remained confident for its full year results.
Speedy Hire also declared an interim dividend of 0.80 pence per share, increasing from 0.75 pence year-on-year.
"Revenue growth is continuing with new contract wins, the effect of actions taken on price and a healthy pipeline of customer activity which gives confidence for further growth in the second half," said Chief Executive Dan Evans, cautioning that the macroeconomic outlook and inflationary pressures remained uncertain and high.
Shares in Speedy Hire fell by 7.0% to 40.24 pence in London on Tuesday morning.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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