Speedy Hire warns of Olympic-Jubilee double whammy
Published: 20 April, 2012
NEWON-LE-WILLOWS: Speedy Hire has warned that its performance in the first half of this financial year will be hit by a double whammy of the Olympic and Paralympic Games and the Queen's Diamond Jubilee celebrations.
Speedy Hire said the Games would result in trading restrictions and disruption to construction projects in the London area for two months, while the four-day Jubilee holiday weekend will lead to reduced trading during June.
The warning came as Speedy said underlying group revenues for the year to March 31 rose 5%. Pre-tax profits are expected to be in line with the board's expectations. Speedy said it remains confident of making further progress over the next 12 months despite the impact of the one-off summer events, although it is cautious about market conditions in the early part of the year.
The Olympics and Paralympics, will result in trading restrictions and disruption to construction projects in the London area for a two month period, and the Queen’s Diamond Jubilee celebrations will result in a reduction in trading days for the month of June, which is traditionally a holiday free period.
As well as the one-off events, Speedy cited higher internal costs relating to fuel for deliveries, insurance and postage for marketing, which will take time to pass on or absorb, as another reason for the profits downgrade.