Speedy Hire bosses remain positive despite profit plunge

Equipment and tool hire firm Speedy Hire is expecting its financial position to stabilise after a difficult year of trading saw the business take desperate remedial action.

The Merseyside-based company, which announced a series of cost-cutting measures at the end of September and the loss of 300 jobs, saw its revenue drop to £165m in the six months to September 30, down from £189.3m during the same period in 2014.

The firm’s pre-tax profit stood at £2m, a year-on-year decrease of around 80.6%, while EBITDA fell to £25.6m from £37.5m the year previous.

Speedy Hire chief executive Russell Down said of the results: “Following a disappointing and challenging start to the year, reflected in the results we are announcing today, we are beginning to see the benefits of the remedial actions put in place to address the various legacy issues.

“These are early days in the Group’s recovery and the full benefits will only be realised over the medium term.”

He added: “However, remedial actions implemented to date have started to stabilise our revenue base and we are expecting to see an improvement in the second half.”

A review carried out by Speedy Hire’s board earlier this year highlighted a number of factors contributing to the company’s shrinking revenue, including a lack of focus on its SME customer base, poor execution of a new IT system and other business improvement programmes and “a lack of ownership, empowerment and accountability” internally.

Bosses are now positive about Speedy Hire’s ability to achieve growth in the long term, with the company on track for a reduction of around £13m in administrative costs in 2016.

Mr Down continued: “Whilst our markets remain competitive, Speedy remains a fundamentally good business which in a more lean, efficient and customer-focussed form, has the potential to once again deliver sustainable profitable growth.”

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