Speedy Hire turns to cost-cutting measures following ‘disappointing’ performance

Tool and plant lending company Speedy Hire has implemented a number of remedial actions due to a ‘disappointing’ performance in the first half of its current trading year.

The Merseyside-headquartered firm made the announcement ahead of posting results for the six months to September 30 on November 10.

Speedy Hire’s board and management team have now launched a series of actions, including a programme to increase engineering resources and redistribute assets throughout its UK-wide network of depots, as well as a realignment of its sales operations.

The firm’s executive chairman, Jan Åstrand, said: “Following the extremely disappointing start to the year, we have taken action to grow revenue and cut costs.

“Whilst these actions will take time to come to fruition, we believe they will deliver material benefits over the medium term.”

To improve revenues and costs, Speedy Hire will also seek to improve its IT system and enhance the digital experience for its customers.

Once in place, the firm is expecting the measures to make overheads around £13m lower than the previous trading year, with approximately £10m of the savings made in Speedy Hire’s UK and Ireland business.

Looking ahead, Speedy Hire is predicting that revenue at the year end from its core hire business will see a year-on-year drop of around 10%, while profits will be ‘materially below’ current market expectations, according to the board.