12th Nov 2013 10:38
LONDON (Alliance News) - Speedy Hire PLC Tuesday reported an increase in profit and revenue for the first half, but warned that improvements to the UK construction sector won't come in time to benefit this year's results.
The company, which provides equipment such as saws to construction firms, posted pretax profit of GBP5.3 million for the period ended September 30, up from GBP4.7 million a year earlier.
Revenue also increased to GBP169.8 million, from GBP161.1 million in 2012, despite challenging market conditions, in particular in construction.
"Whilst we see some signs of recovery in the sector, beyond house-building, we don't expect to benefit from it in the current year. That said, a series of new contract wins and the full mobilisation of the National Grid contact in H1 have made us confident about our momentum going into H2," Chairman Ishbel Macpherson said in a statement.
Speedy Hire said it had focused its energy on securing new contract wins across its target markets of infrastructure, industrial services and major contractors.
The firm said revenue from its top 10 UK infrastructure customers grew by 31%.
Geographically, a fall in revenue for the UK and Ireland division was offset by an increase in revenue to GBP11.0 million for the international arm. Last year the division posted revenue of GBP8.5 million.
Separately, Speedy said its international division had entered into 50-50 joint venture with J. & J. Denholm Group to provide asset management and equipment rental services to the oil and gas sector in Kazakhstan, including the "super giant" fields at Tengiz, Karachaganak and Kashagan, three of the largest oilfields in the world.
As part of the transaction, Speedy has acquired a 50% interest in Denholm's existing equipment rental operation for a total of USD4.4 million in cash.
In December, Mark Rogerson, a former managing director at Costain, will join the board as chief operating officer.
Speedy Hire announced an 18% increase in the interim dividend to 0.26 pence compared with 0.22 pence a year earlier.
The stock was trading at 68.18 pence Tuesday morning, down 0.07p.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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