Speedy picks up the pace
UK rental company Speedy has released its half year figures for the six months to the end of September.
Total revenues came in at £163.8 million, down just over 20 percent on the year, while pre-tax profits plunged 91 percent to £1.4 million. Net debt however was reduced by 32 percent to £57.8 million, thanks to strong cash flow. A cut back on capital investment however took the average age of the fleet to 3.9 years compared to 3.4 years at the end of September 2019.
During the period the company closed 13 locations, and reduced staff numbers from 4,070 to 3,756. Further restructuring is planned for the second half.
Chief executive Russell Down said: “I am pleased with the resilient performance of our business during this unprecedented period. Cash flow performance has been excellent, due to actions taken quickly to control costs and preserve cash, and our balance sheet remains strong.This performance is testament to the strength of our model, hard work of all my colleagues and strong operational delivery. Our customer service focus and capital commitment promise have once again delivered customer renewals and market share gains. I am pleased to report ongoing positive trading momentum in recent months. Moving into the second half, while conditions remain uncertain due to Covid-19, utilisation has returned to 2019 levels and the business is well positioned and invested to take advantage as trading recovers to more normal levels. As a consequence full year results are expected to be towards the top end of analysts’ expectations.”
This is a pretty good performance from Speedy given the challenges – especially in the first quarter, it will be interesting to see how revenues and more importantly profits are in the second half, given that utilisation has returned to normal and yet it has fewer outlets, fewer staff and less debt.