PLANT hire group Speedy Hire reported deeper first half losses and revenues today, but saw its shares rise in early trading after a bullish forecast for the second half of its financial year.
The Newton-le-Willows-based group reported a 4.1% fall in sales of £177.3m in the six months to September 30.
Pre-tax losses came in at £13.8m compared with £13.6m.
But by 9am its shares had risen 1.5p to 26p, a 6.12% improvement.
Chairman David Wallis, who will step down on December 31 to be replaced by Speedy’s senior independent director Ishbel Macpherson, revealed three consecutive quarters of revenue growth, volumes and average hire rates in the UK.
He also outlined major contract wins, including a five-year sole supplier agreement with Thames Water estimated to be worth £45m, a one-year rolling contract involving preferred supplier status with Balfour Beatty, and a three-year deal with Babcock International Group to support its marine, nuclear, networks and infrastructure divisions.
The group has sought to widen its client base and concentrate on deals with leading construction groups, particularly on overseas projects.
This has led to a series of contract wins in the Middle East, including a joint venture relationship with Al Futtaim Carillion on a major £2bn development in the Egyptian capital of Cairo, a three-year supply deal with Costain Group in Abu Dhabi, and a one-year £1m supply deal for QMENA in Saudi Arabia.
Negotiations are also ongoing with Carillion’s Oman joint venture to provide equipment for a £100m infrastructure scheme.
Although revenues showed a 4.1% decline on the previous year, Speedy said they have been improving as the period progressed, with August, September and October all showing gains.
Mr Wallis said: “UK revenues, average hire rates and volume trends are now showing progressive improvement.
“Although market conditions remain challenging, with our strong balance sheet, market leading position and closer alignment with growth markets, the business continues to be well placed both to benefit from the actions taken to reduce operating costs and to capitalise on market recovery.”
He added: “In particularly, the group’s on-site facilities on the Olympics project, recent contract wins in construction and non-construction markets, growing international presence and developing non-hire activities provide grounds for confidence for the future, especially as these are now supported from a more efficient operating base.”
