Speedy Hire sees more value outside construction

Speedy Hire has seen a 35% incrase in its full year profits and a 4.3% increase in revenue - but only by focusing more on markets outside its core UK construction base.

For the year to the end of March the hire company's underlying revenue, which excludes the loss-making accommodation business it sold in 2011, increased to £340.4m, while adjusted pre-tax profits before amortisation and exceptional items came in at £16.8m.

However a continuing focus on what chief executve Steve Corcoran describes as "more sustainable infrastructure and industrial markets" means that at the year end construction only accounted for 49% of total revenue - a signicant change from two years ago, when it accounted for 65% of the company's revenue, and the company made a loss.

However he denide that this meant Speedy Hire was moving out of construction, poiinting out that the 2.2% decline in construction revenue was far less than the downturn in the construction industry nationwide. "It is just that other markets have grown more than that," he said.

The company's international business, which is only three years old, now accounts for 7.1%, up from 5.1% last year.

And the company says it has had much success in targeting high volume customers with a more managed service - in its attempt to move more towards being a service-oriented company.

Corcoran said: "Our research has identified that high-volume users and large clients choose to hire, as opposed to own, assets in order to reduce their risks including capital, operating and legislative and compliance risks. As hire alone does not fully solve these risks for our clients, we aligned our offering with additional services of training and TRIM (test, repair, inspect and maintain).

"Training can reduce mis-use of hired equipment and help avoid loss of production, damage to property and personal injuries. TRIM recognises that it may sometimes be more economic for a customer to buy, rather than hire, an asset and addresses the need for any asset to be properly tested, repaired, inspected and maintained so that it remains safe and productive."

Corcoran said he expected to see another year of declining activity in the UK, but added: "We are increasingly confident in our ability to secure business in our target markets of social and economic infrastructure where growth is more predictable."

Your News

If you've got a story that would be of interest to Builder & Engineer readers, send us an email


2017-05-31 13:33

The rate of Insurance Premium Tax (IPT) will rise by two per cent on June 1 to 12 per cent on all non-exempt transactions. Martin Bennison, managing director at construction finance firm Ultimate Finance, explains what this means for UK construction companies.

2017-05-25 08:41

Building Information Modelling (BIM) is growing in popularity and is now mandatory for centrally funded public-sector projects. Experts and the curious are gathering more and more frequently at dedicated congresses, exhibitions and workshops. Many people are now asking: Where does the UK stand on the issue of BIM and the digitisation of the construction industry?

2017-05-10 10:47

Opening site doors to more females is vital to plugging the construction skills gap, reports Claire Cameron

THE construction industry continues to be plagued by a well-documented skills gap with some suggesting the shortage could get worse before it gets better.

2017-05-08 14:27

If you work on a building site, are self-employed or have a zero-hours contract, you might be surprised to know you work in the ”gig economy”. This is the economy characterised by temporary work and irregular hours, pay and working conditions.

2017-03-29 10:31

Jeremy Gould, VP sales Europe, TomTom Telematics, discusses how technological developments in vehicle telematics have opened up new workflow management possibilities for the construction industry

2017-03-21 09:31

With the demand of oil increasing, it’s estimated that the Earth will reach its full capacity for oil consumption at some point within the next 20 years. This is despite the production of oil decreasing, and the construction industry is no exception to this, reports Niftylift.

2017-03-17 10:55

With construction firms leading the way in drone technology, Claire Cameron takes a closer look at how unmanned aerial vehicles (UAVs) can be used onsite

2017-03-07 16:20

While the physical safety of workers is prioritised on construction sites, mental health is often overlooked, reports Claire Cameron

Free E-newsletter Sign-Up

Sign up for our free e-newsletter

Looking for a company or service?