17th Oct 2024 14:08
(Alliance News) - Speedy Hire PLC on Thursday reported a marginal decline in interim revenue, but said its board remains confident in meeting its full year expectations.
In the six months to 30 September, the Merseyside, England-based tools and equipment hire services company said a challenging macroeconomic environment affecting the groups end markets led to a "satisfactory" trading performance, with lower margin revenue declining 5% and hire revenue in line with the prior year.
A decline in fuel revenues owed to wholesale fuel price reductions was partially mitigated by growth in Lloyds British testing services, leading group revenue to slide only marginally compared to the previous year. It has also experienced an underperformance in its Kazakhstan-based joint venture owed to "delays in major project opportunities".
Speedy Hire expects revenue in the second half of its financial year to benefit from new contract wins, noting that its new opportunities pipeline "continues to grow".
Net debt for the equipment hiring firm rose to GBP112 million following the purchase of Hire fleet assets creating a higher interest cost for the business.
Shares in Speedy Hire were trading down 4.1% at 35.95 pence on Thursday afternoon in London.
The group will report its interim results on 21 November.
By Christopher Ward, Alliance News reporter
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