Speedy Hire profits come in ahead of forecasts

Speedy Hire hailed a resilient performance in an "exceptionally challenging" year on Tuesday, after profits came in marginally ahead of forecasts.

The tools, equipment and plant hire specialist reported adjusted pre-tax profits of £20.7m for the year to 31 March, a 41% decline on 2020 but above consensus, for £19.8m.

Stripping out disposals, group revenues were down 11% at £359.4m.

Pre-tax profits fell 41% to £12.3m, while basic earnings per share were £1.82, compared to £3.23 a year previously.

A final dividend of 1.40p is being proposed, which Speedy Hire said "recognises the strong recovery in the second half". Payouts had previously been suspended while the firm accessed government pandemic relief, notably through the Coronavirus Job Retention Scheme.

Russell Down, chief executive, said: "I am pleased to report results that are ahead of our expectations in what has been an exceptionally challenging year for customers and colleagues alike. The resilient performance of our business during the unprecedented period is testament to the strength of our model."

During the pandemic, Speedy Hire responded by closing depots and trimming staff numbers. In total, 13 depots have been shut with a further 22 being consolidated into six locations. The group headcount is 3,843 compared to 4,065 a year previously.

Strategic developments included entering the business-to-consumer market through a trial with DIY retailer B&Q, and extending contracts with Murphy, Osborne and Balfour Beatty as well as securing new ones with Network Plus and MWH.

Looking to current trading, Down added said the new financial year had got off to an "encouraging start", with revenue in April and May around 2% of the equivalent months in 2019.

"Our strong balance sheet and the actions we have taken to develop our digital and environmental, social and corporate governance offerings give us confidence for the future," he noted.

As at 1430 BST, shares in Speedy Hire were off 5% at 77.0p.