Speedy gathers momentum

UK rental company Speedy Hire has reported continued momentum in its half-year results released today, with revenue from continuing operations up 28.2%.

The tools and equipment rental specialist recorded a 29.9% year-on-year improvement in EBITDA for the six months ended 30 September, to £49.1m, while its adjusted operating profit was £9.9m higher at £16.2m.

Reporting overall revenues of £186.6m, Speedy said revenue had grown throughout the period, with adjusted profit before tax from continuing operations ahead of both the 2021 and 2020 financial years. The company has also raised its expectations for the full year.

“Positive trading momentum in recent months and the significant growth opportunities presented by major infrastructure projects give us confidence in delivering full year results ahead of current market expectations and sustainable growth in the medium term.”

Speedy chief executive officer Russell Down said, “We have delivered another strong set of results through the strength of our offering, efficient operational delivery and a supportive market backdrop.”

The company also confirmed it made a “significant” £37.6m investment in its hire fleet over the period, with a focus on carbon-efficient ‘ECO’ products. Asset utilisation was up 1.8% to 57.3% as at the period end on 30 September.

Speedy Hire also reported an “improved customer experience” through its upgraded digital platform, adding that a trial in 16 B&Q stores in the first half was successful in expanding its retail proposition through a seven-day offering.

An agreement had also been signed to open at 23 further B&Q locations from the second half, generating incremental revenue, while targeted price increases were offsetting cost pressures.

Improvements to “simplify and standardise” its operating model were being carried out, with Speedy Hire’s internal digital capabilities improved through the successful implementation of a new cloud-based enterprise resource planning system in October.

The company said an improved consumer platform was also under development to simplify the digital customer journey.

Meanwhile its environmental, social and governance (ESG) initiatives were progressing well, with a new low carbon ‘innovation centre’ in Milton Keynes opened earlier this month.

Looking ahead, Speedy Hire said its results for the 2022 financial year were expected to be ahead of current market expectations, given positive market conditions.