Profits surge at Speedy Hire

Tool hire firm Speedy Hire today unveiled a 16.1% hike in pre-tax profits and trumpeted its success in winning business in new markets such as oil and steel.

Speedy Hire, which has 304 depots around the UK, said it was in “excellent shape” after profits rose to £13m (€19m) during the six months to September 30 and margins remained steady despite the pressures of higher energy costs.

Government spending on new construction projects was cementing demand from key customers for its tools, with many reporting high levels of activity and record order books.

At the same time, Speedy Hire indicated it was no longer wholly reliant on winning business in its traditional markets and was now picking up contracts in industries such as oil, steel and specialist manufacturing.

Speedy Hire added that its ability to offer a range of services explained why it was recently awarded a contract to rent all the tools needed by the Royal Naval Dockyard in Portsmouth.

Chairman David Wallis said all its markets remained buoyant and stable. “Subject to there being no significant change in the economic outlook, we are confident of reporting further progress,” he said.

New legislation was creating opportunities for tool hire firms, with the Working at Height directive and the Hand Arm Vibration directive driving demand for safer and larger products.

Investec analyst Geoff Allum said: “The growing complexity of the Health & Safety regulations works to Speedy’s benefit. It is less easy for smaller competitors to convince clients that they have as good a grasp on the changing regulations as Speedy.”

Speedy Hire, based at Newton-le-Willows on Merseyside, has been aggressively buying new firms as the tool hire industry rapidly consolidates.

Its most recent deal saw it buy the four depots of Delyn Tool Hire, which took the firm into North Wales for the first time.

Shares in Speedy Hire rose nearly 2% today to 765p to be within a whisky of reaching an all-time high.