As just one of the businesses impacted by unpaid invoices to Carilion, Speedy Hire has this week surprised us all, announcing details of their financial position.
The company has reported a huge jump in annual profits; something the tool rental firm attributes to a new focus on small and medium enterprise (SME) clients. The Merseyside-based firm enjoyed a revenue increase of an attractive 6.4% to £371.6 million. Pre-tax profits also increased from £14.4 million last year to £18million. Having shifted their attention to the SME end of the market, such alterations to marketing efforts have evidently paid.
Upon releasing the results, Chief Executive, Russel Down, said the following:
“We are delighted with these results which reflect a strong operational performance, robust capital management, the benefits of the strategy which was launched in September 2015, the impact of our recovery initiatives and some earlier than expected acquisition synergies.”
With the tool hire market welcoming new startups on a regular basis, the need to remain relevant and competitively-priced boasts its challenges. Giving customers more choice than ever before, targeting businesses at both ends of the market is a wise move. Proving to be aiding Speedy Hire into profitability, Russel Down believes they have started as they mean to go on, with the next quarter of the year already looking positive.
“The market remains competitive; however, the current year has got off to an encouraging start with revenue ahead of the comparative period on a like for like basis. Whilst we are early into the new financial year, and some of the benefits from the acquisitions have been realised, we are confident of delivering further progress in the year ahead in line with our current expectations” Down added.
So, what do you think? Can Speedy Hire remain the industry’s key player simply by investing in fleet optimisation and improving its relationships with SMEs? Share your opinions with us.