Speedy Hire shrugs off bigger losses

17th Nov 2010 13:21

Plant hire specialist Speedy Hire has grown UK revenue, volume and average hire rates for the third quarter in a row following a further increase in the three months to 30 September, and October was up 5% on the year before.UK volume of equipment on hire was up 5.4% in the quarter compared with the three months ended 30 June and average hire rates were up 2.8%."The outcome for the financial year is dependent on us continuing to build upon this momentum and a return to a more normal bad debt charge following the impact of recent corporate failures in the construction sector," the firm said.Chairman David Wallis is also upbeat. Recent major UK contract wins with Thames Water, Balfour Beatty and Babcock Group will contribute to second half revenues."The group's on-site facilities on the Olympics project, recent contract wins in construction and non-construction markets, growing international presence and developing non-hire activities provide grounds for confidence for the future, especially as these are now supported from a more efficient operating base," Wallis said.But market conditions are still tough and revenue was down 4.1% during the first half to £177.3m, pushing the loss before tax and exceptional items to £9.9m from £4.8m a year earlier.The collapse of social housing maintenance group Connaught left Speedy nursing a £1.7m charge.There's a final dividend of 0.2p a share.