Analysts welcome positive Speedy Hire trading update
Liverpool stockbroker Panmure Gordon reiterated its “buy” call for plant hire group Speedy Hire, after an upbeat trading update.
The Newton-le-Willows- based operation said it expects annual results to be in line with expectations.
Speedy Hire has suffered from the effects of the downturn on the construction industry, but said trading in the third quarter to December stabilised and during the early fourth quarter has recovered, with January revenues “broadly in line with management expectations”. Net debt has been cut from £248m at the start of the financial year to £141m by the end of January and the aim is to bring that down further to £125m.
In addition to recent contract wins with BT, Tube Lines, Exxon Mobil and Osborne, Speedy Hire has signed a new two-year preferred trading agreement with Costain Group and extended its exclusive trading deal with Amec until 2014.
The update said “overall activity appears to be stabilising.”
Stockbroker Panmure Gordon’s upbeat comment note regarding the update remarked: “Management look forward with ‘cautious optimism’ – a phrase that Speedy has not used for some time – and we reiterate our ‘Buy’ recommendation.”
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