Speedy Hire PLC (LON:SDY) shares raced higher after the tool and equipment hire company said full-year adjusted pre-tax profit would be ahead of last year and in line with expectations.
In a trading update, the group said revenue for the half-year to September 30 is expected to be 6.5% higher than last year, boosted by 8.0% growth in services revenue.
READ: Speedy Hire reports jump in adjusted pre-tax profits as SME strategy bears fruit
On a like-for-like basis, revenues in the UK and Ireland are flat after lost revenue from the collapse of Carillion offset a strong performance in the higher margin small and medium enterprises market. The international business is “performing strongly”, the company said.
Carillion entered compulsory liquidation in January with a £1.5bn debt pile after failing to secure a rescue deal with lenders or the government. The contractor owed Speedy Hire about £2mln.
The group said there would be no exceptional costs for the half year, compared to £4.7mln in the year-ago period. Net debt is expected to be cut to £65mln from £69.4mln at the end of March. Return on capital will be more than 12%, up from 9.4% last year.
Around noon, shares increased 1.8% to 64.6p each.