Speedy Hire striding forward as profit and revenue grow
Speedy Hire, the UK’s leading tools and equipment rental company, posted strong interim results this morning, with profit and revenue up 20 and six per cent respectively.
Read more: Speedy Hire profits jacked up as small business strategy pays off
The figures
Profit before tax reached £16.4m, up from £13.5m for the same period in 2018.
Revenue rose to £206m from 197m last year, with adjusted earnings per share also up about 22 per cent to 2.56p.
Return on capital employed, a key metric for the asset-backed business, rose to 12.7 per cent, whilst the firm’s utilisation rate hit 56.5 per cent.
Why it’s interesting
Speaking to Morning Wire, Speedy Hire’s chief executive Russell Down said that the company’s three-pronged strategy of improving customer service, growing the services arm and improving data was paying off.
He added that the company had captured an additional 25 per cent of SME market share in 2018 and 2019, which had significantly boosted their margins.
He said that contractor’s increased willingness to spend more on sustainability was an advantage for Speedy Hire, who have been adding innovative products like hybrid-powered tower lights and electric excavators to their fleet.
Due to the clocks going back , the firm has distributed 3,500 of these large tower lights to sites across the UK in recent weeks.
Read more: Speedy Hire on the mend
Down also said that the acquisitions of training provider Greason and powered access firm Lifterz had allowed the company to increase their foothold in those markets.
Analysts at Liberum said that they expected continued progress in asset efficiency, market share gains and cost discipline to drive further improvement.
What Speedy Hire said
Chief executive Russell Down said:
“I am pleased with the continuing momentum in the business and to be reporting another positive set of results for Speedy. I am particularly encouraged by the growth in higher margin SME customer revenues and progress with our digital roll out where we have continued to make significant investment.
Over 40 per cent of our revenue now comes from Services compared to around 30 per cent three years ago. This, combined with our more diverse customer base, provides us with a strong platform for further growth. In spite of the current uncertain UK political backdrop we remain confident of delivering full year results in line with our expectations.”
Main image credit: Speedy Hire