Speedy Hire Plc (LON:SDY) saw its shares advance 5% today after the hire equipment group said it expects its full year adjusted pretax profit “to be well ahead of the prior year and slightly ahead of the Board’s previous expectations.”
In a brief trading update, the small cap firm said that group revenues for the period to 31 August, excluding disposals, are approximately 7.5% ahead of the prior year primarily due to growth in services revenues.
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It added that utilisation rates for the year to date have averaged 54.5%, an increase of around 6% over the same period in the prior year.
The group said its net debt at the half year-end on September 30 is expected to be below £70mln, down from £85.4mln a year earlier.
The company, which works with customers in the construction, infrastructure and industrial markets, said it had reduced the number of its operating divisions and distribution centres, as part of an ongoing attempt to cut costs.
Speedy Hire said the reduction will result in annual overhead savings of at least £3mln, adding that it book net exceptional costs of about £4.5mln for the reorganisation in the first half year.
In early morning trading, Speedy Hire shares were up 5.4%, or 2.75p at 54.00p.