H1 17 revenues are up and FY17 profit on track to beat the Board's previous expectations.
Companies: Speedy Hire Plc
Speedy Hire (LON: SDY) has released a brief but positive trading update today, outlining the Group's half-year performance ahead of their interims due in November.
The release outlines Management's expectations that Group revenues for the six months to 31 August are ahead c. 7.5% on the same period last year thanks to growth in services revenues.
Utilisation rates for the year to date have averaged 54.5%, an increase of c. 6% over the corresponding period last year. Net debt at the half-year end is also expected to be below £70m (30 September 2016: £85.4m).
As part of the Group's focus on cost efficiencies, a number of distribution centres and operating divisions have been closed, resulting in an expected saving of £3m in overheads.
Management went on to say:
Adjusted profit before tax for the full year is expected to be well ahead of the prior year and slightly ahead of the Board's previous expectations."
Shares are up around 5% this morning as a result.
The group has a tumultuous couple of years resulting in profit warnings and the resignation of former Chief Executive Mark Rogerson in 2015.
Liberum released a research note today detailing their take on the turnaround of the tool and plant hire company:
"We believe that the 1H18 trading update provides confirmation that the group’s strategy remains on-track... With the shares continuing to offer significant upside from this self-help story and positive long-term industry dynamics, we reiterate our BUY rating and 62p target price."
After the dramatic fall in share prices in 2015, the stock has regained some of that lost ground to be trading at c. 54p today. This is still well below the all-time high of 350p per share in 2007.