Tool rental firm Speedy Hire has reported a large jump in sales just months after appointing a new chief executive.
Mark Rogerson too the helm earlier this year after the company’s previous boss, Stece Corcoran, quit because of accounting problems in one of its divisions.
The accounting irregularities in its Dubai business were expected to hit profits by as much as £3million this year.
In an interim management statement yesterday, Merseyside-based Speedy Hire said revenue during the three months to June 30 was up by 15.7%, compared with a year earlier.
Chairman Ishbel Macpherson added: “Economic and market conditions in our core markets continue to show signs of improvement, and the positive revenue trends are in line with management expectations.
“In the UK & Ireland Division, which constitutes 94% of group revenues, the strategy of focusing on core hire, specialist solutions and complementary services, combined with an equal focus on all of our customer groups – strategic, major and regional customers – has delivered revenue growth of 15.6%.”
Speedy Hire recently added new superstores in Aberdeen and Coventry to a growing network opening alongside hundreds of smaller depots throughout the UK.
We have now fully mobilised our contract with Babcock announced in February and we are progressing the award as a Preferred Bidder for a Tier 1 contract with Balfour Beatty. In addition we have won a number of new contracts with major customers. At a regional level the ‘Own City’ campaigns are already beginning to make a meaningful contribution to the Group. Whilst it is early days, we have seen good progress in all our target cities, in London and Manchester in particular we have seen growth over the same period in the prior year of 18.9% and 17.2% respectively. Additionally, our Partnered Services Division grew by 50.8% over the same period in the prior year, a result of our Integrated Services Strategy. The new UK & Ireland senior management team is now in place. The reconfiguration of the depot network has seen the successful delivery of 2 further superstores (Coventry and Aberdeen). Further sites have now been secured and development works started as part of the accelerated plan to complete the network. The new management team in the International Division is now embedded and continues to deliver on the business’ key contracts. The key focus of this team is to return the Division to profitability. I am pleased to report that the Company has worked hard to focus on the opportunities arising throughout the UK, and Speedy is in a good position to exploit the numerous opportunities for growth that are emerging as the market continues to recover. The Board is therefore confident that the Group is on track to deliver results for the full year in line with its expectations.” Future announcements Speedy will issue its Interim Results for the 6 months ended 30 September 2014 on 11 November 2014 and will issue a Trading Update on 16 October 2014. For further information please contact: Speedy Hire Plc Mark Rogerson, Chief Executive Officer