Speedy Hire has seen its first half profits rise by more than 20%, helped by growth in its service offering.
For the six months to 30th September 2019, Speedy grew pre-tax profit by 21.5% to £16.4m (2018 £13.5m) on revenue (excluding disposals) up 5.9% to £204.2m (2018 £192.8m)
Total revenue increased 5.7% to £205.7m (2018 £194.6m)
Hire revenue increased by 0.8% following the acquisition of powered access hire specialis Lifterz, offset by hire rates dented by the more competitive landscape. Average asset utilisation rates for the period increased a little from 56.2% to 56.5%.
However, services revenue grew by a more substantial 14.2% following the acquisition of Geason Training and growth in the Lloyds British Testing business.
Chief executive Russel Down said: “I am pleased with the continuing momentum in the business and to be reporting another positive set of results for Speedy. Our strong balance sheet and financial performance are underpinned by excellent customer service, with continuing progress against our strategic objectives. I am particularly encouraged by the growth in higher margin SME customer revenues and progress with our digital roll out where we have continued to make significant investment.
“Over 40% of our revenue now comes from Services compared to around 30% three years ago. This ,combined with our more diverse customer base, provides us with a strong platform for further growth. In spite of the current uncertain UK political backdrop we remain confident of delivering full year results in line with our expectations”.