Speedy makes first half loss as challenging conditions persist

Speedy Hire said it expected to break even in the second half of the current financial year (before tax and exceptional items) after making a pre-tax loss of £4.8 million for the six months to 30 September. Including tax and exceptions items, this loss rose to £13.6 million.

The company said in its interim trading statement that markets continued to be challenging and that October revenues continued the broadly flat month on month pattern seen this year so far. Speedy said; "Whilst monthly revenue declines year on year are expected to narrow from November, following further project deferrals the Board now expects the Group to be broadly break-even at an adjusted profit before tax level for the second half period."

Total revenues for the six month period were £184.8 million.

During the six month period Speedy restructured, merging its ten UK regional and product driven divisions into a single trading entity, Speedy Asset Services, and creating two new businesses, International Asset Services and Branded & Advisory Services.

The UK & Ireland operation saw revenues fall 28.2% to £184.0 million, while revenues at the International business - mainly in the Middle East through the Carillion partnership - were £0.3 million. The Branded division, which is dominated by training activities, posted revenues of £0.5 million in the six months.

During the period the company continued to target major accounts business, securing on-site facilities to support some major projects in the City of London, including The Shard of Glass development. It is also a member of one of the two rental consortia supplying equipment to the Olympics site.

The site was established in September this year and Speedy said activity will now pick up; "the project will be moving to fit-out stages early in the New Year, which should significantly increase the Group's revenues from this project against the current run-rate."

David Wallis, Speedy chairman, said the outlook for UK construction remained uncertain in the short term, but added; "the Group remains well positioned in the market place, having taken aggressive steps to reduce further both its net debt and cost base, as well as driving through a number of initiatives to extend its competitive advantage and market leading position."