Speedy Hire Group PLC reported 13.8% growth in half-year revenues to £212.4mln but saw adjusted pre-tax profits fall to £14.1mln from £14.6mln.
The tools and equipment hire services company said hire revenue growth was 5.5% in the six months to 30 September 2022 with improved pricing helping to mitigate inflationary cost pressures while service revenue increased 29.0% reflecting higher income from fuel and energy sales.
The company said hire revenue growth in October and November was c.6%, up on the same period last year, driven by new contract wins and a healthy pipeline.
Inflationary cost pressure will be managed through efficiency optimisation and further targeted price increases and the group remained confident of delivering results in line with the board's expectation for the full year.
But the company did point to some recent evidence of a softening in demand "as our end customers review their use of assets with a view to operational efficiency".
Dan Evans, who took over as chief executive on 1 October, said: “Whilst the macroeconomic outlook is uncertain and inflationary pressures remain high, I take over as chief executive at a time when our business is performing well, is resilient and positioned to manage changes in market conditions.”
“We remain confident of delivering results in line with the board's expectation for the full year."
A 0.80p interim dividend was announced.