Speedy reports steady progress on FTSE

Tools and equipment hire group Speedy Hire said the outlook for its businesses remained positive after a strong period of trading since Christmas.

The FTSE 250 Index company added that third-quarter revenues were up 43% in the quarter to December 31, with growth for the nine months ahead 39%.

Speedy said it had limited exposure to the faltering housing market and retail sectors, with annual results figures due to meet expectations.

“Our principal markets remain strong and post Christmas trading has started well,” Speedy said in a trading statement.

The Merseyside-based company told investors in November that it expected its market to grow by 12% in the period to 2010.

Speedy is expected to benefit from planned infrastructure projects such as the Olympics and construction work in education and social housing.

And with the recent acquisition of Hewden Tools in August adding 188 depots, Speedy now has more than 5,000 staff and 400 tool hire sites. Speedy said the integration of Hewden was proceeding to plan.

Half-year results recently showed the tool division grew revenues by 38.2% to £111.7m (€149m) in the six months to September 30, with like-for-like sales ahead 11.4%. In equipment hire – covering power, lifting, and power products - revenues grew by 33% to £101.4m (€135m).

Shares were 2% higher at 798.5p today.

David O’Brien, an analyst at Altium Securities, said: “Trading post-Christmas has started well, undoubtedly helped by the unseasonally mild January.”