Speedy Hire, the tools, equipment and plant hire services company, has issued an update on its trading performance for the year ending 31 March 2017.
Group revenues for the third quarter, on a like-for-like basis (pre-disposal), were 10.6% ahead of the prior year, in part benefiting from the timing of the Christmas holiday period. The Group’s recovery plan to improve the efficiency of operations remains on track with reduced overheads, and rental assets and net debt both lower than at the half-year end.
The Group announced the acquisition of the brand, business and assets of Lloyds British Testing on 19 December 2016. The integration is progressing well with a number of revenue and cost synergies expected to be realised. The results of Lloyds British will not materially affect the FY17 underlying profit before tax.
Speedy Hire has implemented a number of customer service initiatives, which have led to improving revenue and the retention of major framework contracts. These include a contract renewal, and scope extension, with Carillion, which in total could be worth up to £45m over three years.
As a consequence of the improving revenue trend and better operational efficiency, the board anticipates that adjusted profit before tax for the full year will be ahead of its previous expectations.