Speedy Hire sees boost from surge in infrastructure spending

Big projects including HS2 have boosted prospects at Speedy Hire after the plant and equipment specialist revealed better-than-expected results today.

Alongside the surge in infrastructure spending, Speedy is seeing improved demand from SME customers and encouraging progress on a trial scheme at 16 B&Q stores.

Revenues in April and May are up 2% on the equivalent period of 2019, having also risen 4% during a strong finish to the March financial year.

Speedy serves about 50,000 customers in the UK and Ireland, including 86 of the UK’s 100 largest contractors. During the past year it extended contracts with Murphy, Osborne and Balfour Beatty and won a number of new deals including with Network Plus and MWH.

Chief executive Russell Down said: “Infrastructure spending has grown and prospects are strong, particularly on major projects including HS2. Our investment in equipment and new colleagues in the rail sector resulted in revenues growing significantly.”

He added that revenues from SME customers were up 10% in the second half of the year, with “significant opportunities” for growth through the B&Q scheme.

A 35% hit to sales in the first lockdown meant annual revenues fell 10.6% to £363.6 million, but with adjusted profits better-than-expected at £12.3 million. The dividend has been restored at 1.40p a share, having been pulled last year amid government support.

Analysts at Liberum said today’s figures were 6% better than they expected, prompting the broker to raise its price target to 90p compared with just above 80p today.