Speedy Hire PLC (LSE:SDY) expects full-year performance will be in line with expectations after what it called a “satisfactory” first half.
The tools and equipment hire services company said revenue from its national customers was up 5% on last year, offset by some softening of revenues with its regional customers.
Speedy Hire also announced the acquisition of sustainable power solutions specialist Green Power Hire Limited for an enterprise value of £20.2 million. This will be funded from existing debt facilities.
In a trading update for the half year ended September, the firm said it expects a second-half weighting to its hire revenues and profits, as the winter programmes commence and new contracts extended and won fully mobilise in the period.
Service revenues are expected to be lower, primarily due to the decline in the wholesale price of fuel, down around 20% against prior year.
But this has not materially impacted margin, as direct costs fall proportionately.
Velocity, the company's five-year transformation and growth strategy, was launched earlier in the year and is progressing well while the joint venture in Kazakhstan continues to perform well.