Speedy makes net zero carbon commitment

Speedy Hire said it was committed to reaching net zero emissions from its business before 2050 and will later this year will set out “science-based targets”.

To push its environmental strategy the company has appointed its first Environmental, Safety & Governance (ESG) Director and an Innovations Director, both of whom started in April this year.

Speedy has been nvesting in sustainable power products.

Speedy said its main aim was to reduce the carbon output of its rental and vehicle fleet through the use of solar, hybrid, electric and hydrogen technology; “We are working with equipment manufacturers to increase the volume of sustainable products within our hire fleet with this year’s capital expenditure budget being weighted towards such products”.

Low emission products currently generate more than 25% of Speedy’s revenue.

The company is also trialling the use of hydrogenated vegetable oil (HVO) as a substitute for diesel. It said initial trials have shown carbon output to be reduced by up to 90% “and hence we are working with customers to further roll out this product within our network.”

The comments on its net zero carbon target were part of Speedy’s financial announcement for the full year to 31 March 2021. Revenues were down 10.6% to £363.6 million and EBITDA profits fell by 15.7% to £90.5 million.

Speedy said its business with small and medium sized customers had increased by 20% in the final quarter of the year compared to the same period in 2020.

The company sold its Middle East business to its main customer ADNOC Logistics and Services LLC (ADNOC) on 1 March 2021 for US$18 million. As a result, its 600 UAE-based employees will be offered re-employment by ADNOC.

Russell Down, Speedy’s 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 this unprecedented period is testament to the strength of our model, hard work of all my colleagues and strong operational delivery. Our excellent customer service, including our four-hour delivery commitment, has facilitated a strong recovery in the second half.”

He said the group had made an encouraging start to the new financial year, with revenue in April and May around 2% higher than the equivalent period in 2019; “Our strong balance sheet and the actions we have taken to develop our digital and ESG offerings give us confidence for the future.”