SDY likely to report strong results after successful recovery plan and cost cutting
Companies: Speedy Hire Plc
AIM-listed Speedy Hire (LSE: SDY), will beat expectations in the first half of FY17, the company said this morning, confirming that its recovery plan and cost cutting drive is having a significant impact on performance.
Revenue for H1 is ahead year-on-year, and is slightly ahead of management's expectations leading into the 16 November results:
"With lower overhead costs, profit before tax will be ahead of H1 FY2016. We anticipate further progress and the Board expects that the full year profit before tax will be ahead of its previous expectations."
The company, which was founded in 1977 and trades on LSE's AIM market, said its recovery plan has continued to drive improved performance during H1 FY17, with the operational restructuring and focus on management of rental assets resulting in further improvements in operating performance. The announcement also confirmed that net debt will be "significantly" lower than the previous year.
Liberum analyst Rahim Karim said the company was delivering higher revenue and lower costs and confirmed his firm were upgrading its FY17 estimates for the company.
