Speedy losses hit £13.8m as contractor bad debt bites

Aaron Morby 14 years ago
Share

Rising numbers of contractors going bust has hit plant hirer Speedy pushing up losses in the first half of the year.

The UK’s biggest hirer said it had now seen three consecutive quarters of growth in hire volumes and margins but it was also counting the cost of bad debt because of a spate company failures.

Pre-tax losses for the first half to the end of September hit £13.8m, the same scale of loss as the same period in 2009.

Connaught’s collapse alone left Speedy nursing a £1.7m loss and the impact of Rok is still not known.

David Wallis, chairman, said: “After weakness in the early part of the year, the recent UK trading environment is more encouraging, with quarter on quarter growth in revenues, volumes and average hire rates seen over the last three quarters.”

October revenues continued this trend, up approximately 5% on the prior year.

But he warned: “It is not however without its challenges, particularly in respect of corporate failures in the construction sector.

“The outcome for the financial year is dependent on us continuing to build upon this momentum and a return to a more normal bad debt charge following the impact of recent corporate failures in the construction sector.”

A series of new orders and deals secured in the last month is expected to put Speedy on a better footing for the full year.

These include a five year sole supplier agreement to supply Thames Water Tier 1 contractors on the £5.5bn AMP4, a one year agreement to supply non-operated plant to Balfour Beatty worth £45m per annum and a three-year framework agreement with Babcock International Group to support its marine, nuclear, networks and infrastructure divisions.

Overseas, Speedy has also just opened an on-site facility to support Al Futtaim Carillion with its Cairo Festival City scheme in Egypt and invoicing began in early November. The mixed-use £2bn, 4 year development spans nearly 10m sq ft and a full range of Speedy equipment will be available on site.

Turnover in the first half was slightly down on last year at £177m although operating costs also fell 6.6% after a round of job cuts and a business restructure.

Over the first half of the year Speedy stepped up investment in its hire fleet spending £18.3m, nearly double last year’s comparable figure.

Latest news

Kier wins first phase of £700m Warwick Uni campus build

Firm to start work on science and engineering precinct last this year
10 hours ago

Torsion and Khalbros to build new Leeds £1bn neighbourhood

Eastgate Quarter site acquired from Hammerson
11 hours ago

JCB to double size of US factory in wake of Trump tariffs

$500m Texas factory under construction to expand to 1m sq ft
11 hours ago

Green light for £2.4bn Luton Airport expansion

Government go-ahead to transform airport
12 hours ago

Diversification pays off for concrete frame specialist Statom

Strong results as £180m turnover firm expands into infrastructure sector
13 hours ago

Cardo in talks to buy Breyer roofing arm

More than 100 jobs could be saved at Breyer Roofing
19 hours ago

Quartet win £750m Wales & Western railway deal

Network Rail confirms partners for Reactive and Minor Works framework
18 hours ago

Plans in for £350m London Bridge life sciences hub

Snowsfields Quarter will consist of three buildings containing labs
19 hours ago

Surging labour costs push tender price forecast up

Pick-up in tender prices despite weak growth
19 hours ago

Permasteelisa wins cladding deal on Multiplex city tower

Facade specialist wins work on Fenchurch Street ‘hanging gardens’ tower
19 hours ago

Wates wins fit-out for Manchester First Street Hub

Smartspace arm secures another Government hub deal
2 days ago

Peel Ports reveals winners for £750m framework

18 firms win places on deal: Full list
2 days ago

Big trade names dropped in M Group rebrand

Acquisitive group formed from Morrison Utility services in 2016
2 days ago

Breyer Group files administration notice

Staff hope rival firm could buy assets and save jobs
2 days ago

Former Severfield director takes helm at Embrace Steel

New CEO Martin Kelly aims to step up expansion of steelwork contractor
2 days ago

£302m upgrade funding awarded to FE colleges – list

Cash shared out between England’s 179 college groups
2 days ago

FK Facades thrives but construction arm hit by ISG row

Dispute with failed contractor costs specialist £5.5m
2 days ago

Galliford Try gets go-ahead for Milton Keynes PRS tower

33-storey tower needs gateway 2 approval before work can start
3 days ago

Small house builders get £150m funding for green homes

Developers will have to meet-up to ten new criteria to benefit from interest rate discounts
2 days ago

Lendlease Construction renamed Bovis

US private equity firm completes £35m purchase of UK contracting business and rebrands
3 days ago

Breyer Group battles for survival as rivals circle

Housing maintenance firm fights three winding up petitions in a month
3 days ago

Careys facing £2.4m claim by developer over demolition cartel

Giant Hong Kong developer claims it was overcharged on Lots Road Power Station job
3 days ago

Multiplex profit drops a third as revenue rises to £780m

Spate of new orders sets contractor up for three years of work
3 days ago

Galliford Try and Breheny land latest Sizewell C road deals

More infrastructure deals for new nuclear power station
3 days ago

Worker trapped in collapsed septic tank pit

Contractor and director fined after worker suffers multiple fractures
3 days ago

Homes England buys stalled Broad Marsh site

Demolition to finally be completed as developer hunt begins
3 days ago

Vistry go-ahead for 353 homes at Rochester Riverside

Work to start on next phase of Kent town regeneration at end of this year
4 days ago

M&E firm J S Wright collapsed owing £19m

Trade creditors hit for £11.4m by employee-owned Midlands firm
4 days ago

Right to work checks to be extended to self-employed

Government plans crackdown on illegal working and rogue employers
4 days ago

Midlands developer turns to London with £1bn resi schemes trio

SevenCapital plans 1,000 flats in Kensington, Islington and the Isle of Dogs projects
4 days ago

Contractor services