Speedy on course
9 October 2020
Speedy reports that it no longer has staff on furlough and expects that group revenue, prior to disposals, for the six months to September 2020 will be approximately 20% lower than the prior year, in a trading update today ahead of publishing half year results, scheduled to be announced on 18 November.
The company states that revenue has continued to improve through the period as activity levels have increased. For September 2020, core hire revenue in the UK and Ireland was around 7% lower than the prior year and utilisation rates for the week ended 2 October 2020 were 55.5% (2019: 55.9%).
Speedy says that its Middle East business is performing in line with expectations, albeit slightly below the prior year. Its principal contracts have been extended until 28 February 2021 and discussions are on-going in relation to longer term opportunities.
Net debt at 30 September 2020 was approximately £60m (31 March 2020: £79.3m), reflecting lower capex spend and continued strong cash collections in the first half.
In an earlier trading statement on 10 September, Speedy said that UK and Ireland staff numbers at 31 August were 3,222 (31 March 2020: 3,464), a reduction of around 7% from the year end. 13 UK depots have been permanently closed since the pandemic and others will be consolidated into larger operating locations.