NEWTON-le-Willows-based plant hire group Speedy Hire said its full year forecast is on line and it is well placed to benefit from the “eventual market recovery”.

The firm said it still expects to report a “marginal adjusted loss before tax” for the full year to March 31, when it releases financial data on May 18.

It said, in a trading update today for the past three months to March 31, that the second half of the financial year delivered a “strong performance” after an adjusted pre-tax loss of £9.9m in the first half.

Revenues across the group, excluding fleet equipment sales, rose by 4.8% in the last quarter.

The volume of equipment on hire in the quarter to March fell 1% compared with the previous three month period.

But quarter-on-quarter yields rose 2.8%, due to a 1.8% increase in average hire rates.

Over the year UK volumes showed a 0.6% decrease, but hire rates were 9.9% up on March 2010.

Revenues in the new international, and training and advisory services divisions were ahead by 50% and 120%, respectively, and their combined revenues totalled more than £10m for the full year, compared with £3.7m previously.

However, the board said it is mindful of the political tensions in the Middle East.

Net debt fell from £119.3m to £115m over the year, despite a £10m increase in capital expenditure.

And while the board said it remains cautious about short term recovery prospects and cost pressures in the UK, it said its strong balance sheet, improving trading performance, market leading position and ever closer alignment to growth prospects gives it confidence that the business is well placed to benefit from the eventual market recovery.

Liverpool stockbroker Panmure Gordon maintained its ‘buy’ recommendation for Speedy Hire, saying: “Markets appear to have returned to stability, which offers the chance of significant profit progress when volume growth returns to the markets.”