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Speedy Hire increases revenues by 4.8% in fourth quarter

Construction tools and equipment hire firm Speed Hire increased its revenues in the first three months of 2011 by 4.8 per cent however its expectations for the financial year remain the same.

Speedy Hire’s board remain cautious about the short term recovery prospects and cost pressures in the UK and mindful of the political tensions in the Middle East. Speedy Hire made an overall loss of £9.9M in the first half the 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 volume of equipment on hire in the UK fell 1.0% in the March quarter compared to the quarter ending 31 December 2010. Equivalent quarter on quarter yields increased 2.8%, principally reflecting a 1.8% rise in average hire rates. Over the course of the year, March 2011 UK volumes are 0.6% down and UK hire rates are 9.9% up on March 2010.

Fourth quarter trading in the start-up International and Training & Advisory Services divisions was also encouraging, with revenues (excluding fleet equipment sales) up approximately 50% and over 120% respectively compared to the prior year period. Combined revenues from these two divisions totalled over £10M for the full year, compared to £3.7M in the year to 31 March 2010.

For the year ending 31 March 2011, Group revenues (including fleet equipment sales) are expected to be slightly above £350M, with second half revenues broadly equivalent to the £177.3M reported in the first half.

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