Speedy saw revenues from its UK rental business fall 0.6% in the year to 31 March 2011, with a 1% fall in the last quarter. However, rental rates were up 9.9% over the year, including a 1.8% rise in the last quarter.
While trading slowed slightly in the UK hire business, total revenue (including fleet equipment sales) were up 4.8% in the fourth quarter compared to the same period last year.
When final results for the year are published on 18 May, they are expected to show group revenue slightly above £350m, with second half revenues broadly equivalent to the £177.3m reported in the first half. After a £9.9m loss was reported in the first half, a much smaller loss is expected for the full year.
In the UK Asset Services business, fourth quarter revenue (excluding fleet equipment sales) increased by 3.9%, despite lower revenues within both the Engineering Services and Space operations. Excluding the impact of the expiry of a Network Rail maintenance contract within Engineering Services, fourth quarter revenue (excluding fleet equipment sales) for UK Asset Services was up 6.5%.
The new International and Training & Advisory Services divisions also continue to develop encouragingly, with fourth quarter revenues (excluding fleet equipment sales) up by 50% and over 120% respectively compared to the prior year period. Combined revenues from these two divisions came to more than £10m for the full year, compared to £3.7m in the year to 31 March 2010.
In a trading update, the company said: “The Group continues to expect to report a marginal adjusted loss before tax (before amortisation and exceptional items) for the full year. This reflects a strong performance in the second half, following an adjusted loss before tax (before amortisation and exceptional items) of £9.9m in the first half.
“Notwithstanding this encouraging performance, the board maintains its cautious view about short term recovery prospects and cost pressures in the UK and is mindful of the political tensions in the Middle East. Therefore its expectations for the new financial year are unchanged.
“However, with its strong balance sheet, improving trading performance, market leading position and ever closer alignment to growth markets, the board considers that Speedy is well placed to benefit from the eventual market recovery.”
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