Speedy reports strong 2021

UK rental company Speedy has reported 16.3% growth in revenue to £381.7 million in the year to 31 March 2022, with pre-tax profits up 72% at £30.1 million. The results are like-for-like, excluding the Middle East business that was sold to ADNOC in March last year.

The company said its end markets were positive and that the current financial year had started strongly, with trading up around 8% on the previous year. It added that it had managed to increase rental prices on a larger fleet with higher utilisation.

Russell Down, Chief Executive, who is to retire from the business when a successor is found, said the company’s performance had been strong; “We have continued to progress our strategic goals by taking market share, developing a first class digital customer experience, prioritising our people and leading on ESG. This performance is testament to the hard work and dedication of all my colleagues.

“We have made an encouraging start to FY2023 with volume growth and price increases more than offsetting cost pressures. Against a backdrop of positive end-markets and our unique leading service and ESG customer propositions, the Board remains confident that we will meet its FY2023 expectations.”

Down said the monitoring and reporting of rental pricing had improved, “which will facilitate improved margins and the ability to implement more dynamic pricing models.”

During the year Speedy formalised its partnership with the national do-it-yourself chain B&Q, with 36 in-store locations now running and a presence on B&Q’s website.

Service revenues increased by 13.7% with particularly strong growth in its re-hire business, which had a record year. The joint venture in Kazakhstan reported increased activity levels and contract wins, with a new temporary power contract increasing revenue and profits significantly. The share of the profits from the JV increased to £3.2 million from £1.2 million in the previous year.

Speedy also reported that the phasing out of low-tax ‘red diesel’ – which has been used in the UK construction sector for decades – had led to strong growth in its fuel management business and sales of HVO fuel, which now accounts for 12.3% of sales, compared to 1.3% in 2020/21.

On future prospects, Down said; “Whilst the macro-economic environment is uncertain, our end markets are positive with significant growth projected in major infrastructure and energy projects including HS2 and nuclear.

“Our rail business has continued to expand through winning market share from new and existing customers on HS2, CP6 and more widely. In the housebuilding market we continued to see strong demand and growth in the year.”