12th May 2015 09:59
LONDON (Alliance News) - Speedy Hire PLC Tuesday reported a lower profit for its last financial year as it was hit by costs related to the sale of international assets and management changes, but its profit excluding those costs rose, supporting the decision by new management to withdraw from the Middle East and focus on its profitable UK operations.
The tool and plant hire company reported a pretax profit of GBP2.1 million for the year to end-March, down from a profit of GBP7.0 million a year earlier, as it booked GBP17.1 million of exceptional costs, up from GBP4.7 million a year before.
Those exceptional costs included GBP6.4 million for the continuing redevelopment of its depot network, GBP2.2 million for management changes, and GBP6.2 million of losses related to its sale of international assets.
Excluding the charges, its profit rose to GBP21.9 million from GBP14.6 million as revenue rose to GBP375.0 million from GBP349.7 million, driven by growth in the UK.
It increased its dividend for the year to 0.70 pence, from 0.61p.
"Shortly after he was appointed CEO, Mark Rogerson set out a clear plan to return the group to health and build sustainable profit growth. Mark and his new leadership team have made significant progress, and whilst there is much to do, there is further opportunity to improve the business," Chairman Jan Astrand said.
"In the Middle East, having completed the exit from general and spot hire ahead of schedule, discussions are underway regarding the disposal of the oil and gas services operations, our last remaining asset in the region," he added.
The company said it would now focus on developing its UK operations, and would look to "professionalise" its sales and marketing activities and improve cost management and asset utilisation.
"We are, once again, in a position to deliver sustainable profit growth and our confidence for the future is underpinned by an increase in the recommended final dividend," the chairman said.
Still, Speedy Hire shares were down 2.4% at 74.68 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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