Speedy Hire PLC (LSE:SDY) shares rose 3.1% to 26.1p after it reported a resilient first-half performance against subdued market conditions, and maintained its full-year guidance, with a stronger second-half performance expected.
The group swung to an adjusted loss before tax of £7.2 million in the six months to 30 September as revenue came to £205.2 million, up 0.8% on a year ago, and investment was stepped up to expand its hire fleet to support growth.
This was further accelerated by the "transformational" agreement to buy assets from HSS last month.
Services revenue, excluding fuel, rose 10.6%, while total revenues were flattened by reduced hire volumes and the loss reflected higher interest costs.
The commercial agreement with HSS ProService is expected to generate £50-55 million in annualised revenue.
Business wins included a major new framework with Thames Water, adding to a growing pipeline of long-term contracts.
"Despite subdued markets, we are gaining market share and winning significant long-term contracts, leaving us far better positioned to take advantage as and when market conditions improve," said chief executive Dan Evans.
The company declared an interim dividend of 0.30p and said the full-year outlook remained unchanged as trading in the second half to date has been in line with the board's expectations.