Speedy Hire PLC on Thursday said that its yearly profits had collapsed following a significant asset-write off, and announced the appointment of a permanent chief financial officer.
The Merseyside, England-based tools and equipment hire services company said that its pretax profit for the year ended March 31 plummeted by 94% to £1.8 million from £29.1 million following an asset write off.
The company undertook a comprehensive count of all hire equipment in the year and discovered a shortfall in quantity of non-itemised assets of £20.4 million, writing that off and hurting profit.
This was compounded by an operational efficiency review, resulting in restructuring costs and a net depot reduction of £6.7 million.
Revenue was up 14% to £440.6 million from £386.8 million.
‘The continued capital investment in recent years and a robust balance sheet will allow business to capitalise on market opportunities, and the board looks forward with confidence to the year ahead,’ said Chair David Shearer.
The company recommended a final dividend of 1.80 pence per share, up 22% from 1.45p the year before. This made the final dividend 2.60 pence per share, up 18% from 2.20p the prior year.
Next year, Speedy Hire will launch its new strategy called ‘Velocity’ that is designed to accelerate sustainable profitable growth, by focussing on measurable medium and long-term growth and performance objectives.
Speedy Hire says that the Velocity strategy is built on a five-year transformation programme focussing on: foundational improvements in technology and efficiency, and delivery growth by becoming the most sustainable hire business in the UK.
Chief Executive Dan Evans said: ‘We are excited about executing our new growth strategy, Velocity, which provides clear direction for the business and we expect it to deliver long term benefits to our customers, our people and our investors.’
Speedy Hire announced that its interim Chief Financial Officer Paul Rayner has been appointed as the permanent CFO and executive director, with effect from July 1.
Rayner was appointed to the interim position on November 1 last year.
Shares in Speedy Hire were up 2.6% at 31.25 pence in London on Thursday.
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