Speedy rebounds in the second half

Speedy rebounds in the second half

Speedy rebounds in the second half

Plant and tool hire chain Speedy has posted annual results ahead of expectations, representing a solid come-back from the initial impact of the Covid-19 pandemic.

Speedy ended the year to 31st March 2021 with revenues back at pre-Covid levels and has started the current year ahead of 2019.

Revenue for the year (excluding disposals) was down 11% to £359.4m (2020: £402.5m), while pre-tax profit was down 41% to £12.3m (2020: £20.7m).

However, operating profit was up 21% to £17.0m (2020: £14.0m) and net debt was reduced during the year from £79.3m to £33.2m.

After a tricky start to the year with the first national lockdown – revenue fell 35% in April 2020 – Speedy recovered progressively, with hire revenue up 4% on a like for like basis in the fourth quarter. Utilisation improved in the second half to 58.8% (2020: 55.9%).

Speedy initially closed two-thirds of its network in April 2020 but by September the network was operating at full capacity again following a review of the depot footprint.  This resulted in the permanent closure of 13 depots and the consolidation of a further 22 depots into larger service centres. Approximately 200 staff were laid off. As a result, there were £5.6m of exceptional property related costs and £1.9m of redundancy costs incurred during the year.

Speedy rebounds in the second half
Speedy rebounds in the second half
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Speedy rebounds in the second half

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Speedy rebounds in the second half
BDC 282. July 2021

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Speedy rebounds in the second half