Merseyside-based Speedy Hire hit with £57.6m pre-tax loss

Equipment and plant hire firm Speedy Hire Plc has reported downward spiraling profits and revenues for the last trading year.

The 12 months to March 31 saw the Merseyside company make a pre-tax loss of £57.6m, while its overall revenue dropped year on year by 12.2%, hitting £329.1m.

Speedy Hire’s group EBITDA, meanwhile, slid by 27% to £53.1m.

Internationally, the company returned to profitability after posting a profit of £600k in comparison to a loss of £5.6m the year previous. Despite this, Speedy Hire’s international revenue – which accounts for 6% of its overall revenue – dropped year on year by 13.9% to £20.4m following the closure of its operations in Egypt, Oman and Qatar and a renewed focus on the oil and gas sector for government clients in Abu Dhabi.

Now, bosses at the beleaguered Newton-Le-Willows-headquartered firm have reported that the cost-cutting measures announced last year are finally beginning to offer stability.

Chief executive Russell Down said: “We have restructured the business, cut overheads to more closely align them with revenues, enhanced the management information generated from our systems and improved our cash performance.

“We are now starting to see an improvement in our culture and greater efficiencies throughout our operations.”

Speedy Hire is “starting to respond positively” to the actions undertaken, Mr Down said.

He continued: “With a renewed focus on sales, tighter overhead control and better management information with which to manage return on capital we are creating a solid platform for the future.”

In February this year, Speedy Hire strengthened its services for the rail sector with the acquisition of OHP Limited for £1.5m.

Jan Åstrand, the executive chairman at Speedy Hire, commented: “We are beginning to see the business responding to the actions being undertaken by the new management team with an improvement in our culture of accountability, customer service, and in driving greater efficiencies throughout our operations.”

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