Speedy Hire Cautious On Recovery Prospects; 1Q Revenue -0.7%

20th Jul 2010 07:45

LONDON (Dow Jones)--U.K. tool and equipment hire firm Speedy Hire PLC (SDY.LN) Tuesday said it has a cautious view on recovery prospects in the U.K. for the remainder of this year and next as it awaits the outcome of the U.K. government's Autumn Spending Review. In an update on first-quarter trading to June 30, Speedy Hire said group revenue, excluding fleet equipment sales, was down 0.7% on year compared with a fall of 14% on year in the same period of 2009. The company said it is trading broadly in line with its own adjusted pretax profit expectations for the year, but didn't elaborate. Analysts expect the company to post pretax profit of GBP1.6 million for the year to March 31, 2011, according to a FactSet poll of 10 analysts. Speedy Hire said its U.K. and Ireland Asset Services division, which makes up over 95% of group revenue, has reported improving monthly year-on-year comparisons during the first quarter, with revenue in June 2010 only slightly behind the same month a year earlier and above the GBP30 million level for only the second time since July 2009. Speedy Hire said net debt closed at GBP134.9 million Friday, and it plans to reduce net debt over the rest of the year. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires July 20, 2010 02:45 ET (06:45 GMT)