Speedy Hire’s (SDY) shares had fallen back since the start of the year, so it was a relief when management announced pre-tax profits for the year to March 2018 would be ahead of expectations, prompting a 10 per cent jump.
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Revenues are expected to have grown 6 per cent, beating expectations in spite of £2m of bad debt the group was forced to absorb following the liquidation of support services group Carillion.
The fleet optimisation programme has continued to deliver. Return on capital employed is expected to reach 11 per cent this year, up from 7.7 per cent. Asset utilisation has also improved from 51.1 per cent to 55.4 per cent.
