Claudio Veritiero to leave Speedy as cost cutting continues

Claudio Veritiero is leaving Speedy at the end of October as a cost cutting measure in response to the "continued subdued look" for the UK rental market. Mr Veritiero, who was managing director, UK & Ireland asset services, has been with Speedy for six years.

Speedy said it had streamlined its senior management structure and removed a "small number of roles" and part of its focus on controlling costs. Speedy said Mr Veritiero left with the board's "respect and gratitude for all that he has achieved".

The announcement was made as part of Speedy's trading update ahead of its second quarter results on 17 November, 2010.

Speedy said revenues for the quarter were expected to be up 1.2% on the same quarter in 2009 (excluding fleet sales) and that the company was now operating profitably, although it would record an operating loss for the six months to 30 September.

The company said it was trading in line with its expectations for the full year, but said these expectations were "dependent on the business maintaining momentum into the traditionally stronger second half of the year and, in particular, delivering a strong recovery in the last quarter of the financial year".

Speedy said its international business in the Middle East was developing well. The division has recently signed an initial three year supply agreement with Costain Group to provide equipment on Das Island, Abu Dhabi's major offshore oil and gas complex.

In the UK, Speedy has won a number of important new infrastructure contracts, including a five year sole supplier agreement with Thames Water on the £5.5 billion AMP5 (asset management period 5) programme. Other contract wins include a three year framework agreement with Babcock International Group to support its marine, nuclear, networks and infrastructure divisions.

Speedy said it will take a £1.7 million charge on its activities with Connaught plc, the social housing business that recently entered administration. The charge relates to debts that are unlikely to be recovered, equipment that may not be returned, and a write-off on the value of assets acquired from Connaught earlier in the year.