17th Oct 2013 07:15
LONDON (Alliance News) - Speedy Hire PLC Thursday recorded relatively flat results for the half-year after a period of satisfactory performance.
The tools and equipment provider said that the group had a satisfactory performance during the period, despite challenging market conditions in the UK, and that trading is in line with management expectations.
Speedy said that revenues in the half-year,ending September 30 2013, fell by 0.1% against the comparable period, while quarter two saw improved trading momentum and a 0.4% revenue increase.
In the UK and Ireland, revenue in the first quarter fell by 2.6%, while the second quarter decreased by 1.6%, driven by new non-construction related contract wins and the full mobilisation of its National Grid project, accounting for GBP10.7 million across the infrastructure and industrial sectors, mitigating the overall fall for the half year to 2.1%.
The firm said, "Whilst we are yet to see any material improvement in construction work, the UK and Ireland division continues to navigate through the economic challenges by focusing on active hire markets, service revenue streams, an increasing proportion of non-construction related activities and progressing with the depot network and logistics strategy."
The international division recorded half-year revenues up 28.5% against the comparable period. During the half-year, the company also established a presence in Qatar to work with local MENA teams to pursue opportunities in the oil and gas sector and government-backed infrastructure initiatives.
Steve Corcoran, Chief Executive of Speedy Hire, said, "Whilst the UK market, particularly in construction, remains challenging, our strategy to diversify the Group's revenues to secure both hire and service agreements from companies in non-construction related activities and internationally in the MENA region is generating results. With an improving trend in the UK and Ireland in Q2 and a strong H1 performance in the International division, the Group continues to trade in line with the Board's expectations and remains well positioned to benefit from the future UK recovery supported by a conservative balance sheet."
Shares in the firm were down in early trading Thursday at 65.25 pence per share, down 4.04%.
By Alice Attwood; [email protected]; @AliceAtAlliance
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