Speedy Hire sees results near top of expectations

(Sharecast News) - Speedy Hire predicted annual results close to the top of expectations after the Covid-19 crisis almost wiped out first-half profit.
Pretax profit for the six months to the end of September fell 91.5% to £1.4m from £16.4m as revenue fell 20.4% to £163.8m. Adjusted pretax profit fell 64% to £5.9m.

Speedy Hire said it intended to pay an annual dividend based on results for the year as a whole. The company announced no interim dividend.

The company hires out tools, trucks and other equipment. Its business was hit by the first Covid-19 lockdown, which shut most of the UK's construction industry. Revenue fell 35% in April but then began to recover as the building industry began to reopen.

Utilisation of Speedy's equipment dropped to 45% in April but recovered to the pre-pandemic level of 55.5% by September. At the end of October utilisation was 60.2% - ahead of the year-earlier rate of 57.9%.

Chief Executive Russell Down said: "I am pleased to report ongoing positive trading momentum in recent months. Moving into the second half, while conditions remain uncertain due to Covid-19, utilisation has returned to 2019 levels and the business is well positioned and invested to take advantage as trading recovers to more normal levels. As a consequence, full-year results are expected to be towards the top end of analysts' expectations."

Analysts' expectations for annual pretax profit range from £10m to £17m, Speedy said.

Speedy cut its workforce by 8% to 3,756 in the first half to reduce costs with most of the job losses in the UK and Ireland. The redundancy programme cost £1.6m.