Strong Speedy results
30 May 2022
Speedy’s results for the year ended 31 March 2022 released today show the business continuing its strong performance.
Year-on-year revenue growth increased, with hire up by 17.9%. Pre-tax profit was £29.1m, compared against £8.3m for 2021, and revenue grew to £386.8m from £332.3m. Asset utilisation was up to 57.0% on an enlarged hire fleet following a £68.4m investment in new equipment.
The company achieved a number of new contracts and renewals with customers including Costain, the Home Office, MGroup and Redrow Homes, and its retail business partnership with B&Q now has a presence in 36 B&Q stores and on the DIY warehouse’s website.
Speedy reports an encouraging start to FY2023 with underlying revenue up by approximately 8 per cent.
Russell Down, chief executive, said: "Whilst the macro-economic environment is uncertain, our end markets are positive with significant growth projected in major infrastructure and energy projects including HS2 and nuclear. Our rail business has continued to expand through winning market share from new and existing customers on HS2, CP6 and more widely. In the housebuilding market we continued to see strong demand and growth in the year.”
Interestingly, he said that Speedy has implemented price increases, following product and customer reviews, “to offset inflationary cost pressures on both overheads and new equipment purchases. We have improved our governance and reporting in this area which will facilitate improved margins and the ability to implement more dynamic pricing models.”
The company says that customers “have largely been receptive” to the price increases which will take effect as framework contracts and hire contracts are renewed.
Service revenues increased by 13.7 per cent with the group’s re-hire business achieving a record year. Also, following the phasing out of red diesel supplies to the construction industry, Speedy reports “strong growth” in its fuel management business and, particularly, for HVO fuel which now accounts for 12.3 per cent of fuel sales as against 1.3 per cent the previous year.
The group continues to develop its ESG proposition, following the appointment of an ESG director in April 2021. Speedy's new strategy, called 'The decade to deliver', sets out plans to reduce the company's carbon footprint, as well as helping customers reduce their environmental impact through the operation of a sustainable fleet of hire assets.
In March 2022 the Board agreed to set up a new sustainability committee to enhance its oversight of the Group's ESG strategy, including its performance in reducing its carbon footprint.
Speedy says it currently serves approximately 57,000 customers in the UK and Ireland, including 88 of the UK's 100 largest contractors.
