Speedy figures
22 November 2023
Speedy has reported a reduction in pre-tax profits in the first half of its financial year as hire and services revenues decreased. However, the company says it continues to trade resiliently against challenging but manageable market conditions,
Overall revenue was £208.5m in the six months to 30 September 2023, compared against £214.m during the same period in 2022, with pre-tax profit of £5.9m (2022: £13.4m). The company says the decrease is due to its investment in supporting its Velocity five-year growth plan, the impact of dollar exchange rates on its Kazakhstan joint venture’s performance, and higher interest rates.
Hire revenues decreased by 1.2% and Services revenues, including fuel, fell by 5.2%. Revenue from national customers base continued to grow, up by 5%, offset by a softening of demand from regional customers, down 6%.
The group implemented price increases in January 2023 to offset the effects of cost inflation on both overheads and new equipment purchases, taking effect as framework agreements and hire contracts are renewed.
During the period, Speedy invested £17.6m in its hire fleet, of which 42% was in carbon efficient eco-friendly products. The proportion of revenue from green equipment has increased from approximately 32% in the comparative period to 50% in the first half of FY2024.
The company also announced that it is expanding its partnership with B&Q by launching an online home delivery tool hire proposition on the DIY.com and Trade-point.co.uk platforms. Subsequently, before Christmas Speedy will start extending this into more than 310 B&Q stores nationally, enabling customers to digitally hire in-store the most popular products for home delivery and collection.
Commenting on the results Dan Evans, Speedy’s Chief Executive, said: “The Group has a promising pipeline of opportunities to deliver revenue growth in the second half and beyond. As in prior years, the Group expects a second half weighting to its revenues and profits, as the winter programmes commence and new contracts fully mobilise in the period, including those communicated at year end.
“We expect to see the benefits of our investments in our Velocity strategy including operational efficiency and supply chain optimisation, in the second half and beyond. Whilst the macroeconomic outlook is uncertain, we remain confident of delivering results, albeit towards the lower end of the Board's expectations".
● Check out the Site-Eco area of the blog for news of sustainable products and developments relevant to the world of hire. And you can use the Search Function to find earlier stories on specific people, products and companies.
