17th May 2016 07:09
LONDON (Alliance News) - Speedy Hire PLC on Tuesday said it swung to a loss in its financial year in a "disappointing" set of results, but noted it was beginning to see improvements in efficiencies and its corporate culture following the restructuring it undertook during the year.
The tool and equipment hire company reported a pretax loss of GBP57.6 million for the year ended March 31, compared to a pretax profit of GBP2.1 million a year earlier, as revenue fell to GBP329.1 million, from GBP375.0 million and costs came in higher.
During the year, Speedy Hire was hit by GBP59.9 million in exceptional administrative costs, higher than the GBP16.8 million recorded a year earlier, after it made an impairment provision against the carrying value of goodwill of GBP45.9 million, finalised the roll out of its new network structure and fundamentally restructured its operations.
This came after it conducted a comprehensive review into its operations in the first half of the year, finding that there was a lack of available equipment following the network optimisation programme, poor customer service and a focus on strategic accounts at the expense of small and medium enterprises customers.
"Whilst these results are disappointing, revenue trended better over the second half when compared with the first. Net debt and cash flow performance were better than expected, due to tight operational management and the beneficial effects of the recovery action plan; our balance sheet remains strong. Overhead reductions which were required to bring the business back into shape were targeted at GBP13.0 million; this target was exceeded," said Executive Chairman Jan Astrand.
Speedy Hire said it was recommending maintaining a final dividend of 0.40 pence per share, which would put the full dividend in line with a year earlier at 0.70p per share.
"We are beginning to see the business responding to the actions being undertaken by the new team with an improvement in our culture of accountability, customer service and in driving efficiencies throughout our operations," Astrand added.
Shares in Speedy Hire were up 2.6% at 37.44 pence shortly after market open Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Speedy Hire