Speedy Hire's shares lift as the tool hiring firm hammers out profit

 
Courtney Goldsmith
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Speedy Hire says it's ready for growth now (Source: Getty)

Speedy Hire's shares lifted around three per cent today after the firm unveiled higher profit than expected for the full year as it nails down its turnaround programme.

The figures

For the year to the end of March, the tool rental company posted a profit before tax of £14.4m from a £57.6m loss the previous year.

Revenue grew 12.2 per cent to £369.4m, and net debt was slashed 30.4 per cent to £71.4m.

The firm reported a dividend of 1p per share for the year compared with 0.7p per share the year before.

Shares in the company were up 3.07 per cent at 55.4p in late afternoon trading.

Read more: Speedy Hire is on the mend: Shares lift on "concrete progress"

Why it's interesting

Following a series of setbacks over the years, including profit warnings, chief executive departures and a high-profile activist investor attack in summer 2016, Speedy reported "substantially improved" results after completing its turnaround plan.

Greg Poulton, analyst at N+1 Singer, said: "This year has been focussed on stabilising the business and trading has successfully turned around. Now, focus will turn to the group’s ability to drive sustainable profitable growth and its ability to win market share."

What Speedy Hire said

Chief executive Russell Down said:

"These results demonstrate the success of our turnaround plan with significant improvements across all financial and operational performance measures.

While we have made a solid start to the year, the market remains competitive. With the business now stabilised and a strong balance sheet, we are well positioned to take advantage of market opportunities and continue to deliver sustainable profitable growth.

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