28.05.2008

Speedy beats forecasts

Speedy Hire, the UK’s largest equipment rental company has reported its full year results to the end of March 2008 which show an increase in revenues of almost 39 percent to £465 million.

The increased revenues were boosted by a number of acquisitions during the period, including Hewden’s tool hire business in August 2007 and Waterford Hire in Ireland around the same time.

The effect of the acquisitions drove margins down from 14.9 percent to 13.7 percent. This together with integration and other costs resulted in pre-tax profits growing at a slower pace to revenues, climbing by 18.8 percent to £48.1 million.

Speedy says that it is unable to report same store revenues until 12 months after the close of the Hewden deal, so we don't know what contribution organic gowth played compared to that from acquisitons.

Capital expenditure during the year totalled £104 million while the average age of the company's rental fleet was just 2.4 years as of March 31st.

The company says that the prospects for 2008 and 2009 remain positive, with most of its customers expecting modest growth during the period.

Speedy claims that only five percent of its business now comes from residential construction and expects ongoing growth in infrastructure and industrial construction.