Claudio Veritiero, managing director of Speedy Lifting, was unable to comment on the lifting division’s precise contribution to the group’s overall figures, but he told Hoist: “The lifting division is one of the fastest growing groups within the company.”
Group revenue increased by 23% to £254.3m (nearly Eur 371m) – up from £206.5m (over Eur 300m) last year. Profit before tax grew by 25% to £30.7m (nearly Eur 45m) – up from £24.5m (nearly Eur 36m) last year. Group operating margins pre-amortisation and exceptional items increased from 14.8% to 15.0%. Earnings per share grew by 18% to 50.44p per share. Total equity increased from £108.5m (Eur 158m) to £141.3m (Eur 206m).
Speedy said its equipment division, including lifting equipment, grew by 34% to £107.8m (Eur 157m) – up from £80.7m (Eur 120m). Operating profit increased from £14.8m (Eur 22m) to £19.8m (Eur 29m) giving the division an operating margin of 18.4% (up from 18.3% last year).
Veritiero added: “It was a strong year throughout but we started to notice real growth during the second sixth months.” He explained that gaining market share was crucial to this growth and also highlighted Speedy’s increasing involvement in industrial markets.
Around 50% of the company’s business now comes from non-construction work, which is a considerable increase in this nature of work following the acquisition of Lloyds British. “Traditionally,” said Veritiero, “a far greater portion of our work has come from the construction business.”
A total investment of £78.5m (Eur 114.5m) compared with £60.5m (Eur 88m) last year in new hire fleet was targeted at enhancing Speedy’s reputation for providing its clients with the widest and best range of tools and equipment. This, it said, has ensured that it retains its competitive advantage of having the youngest hire fleet in the industry with an average age of 2.1 years. Return on its invested capital has remained stable at 17.5%.
To supplement strong organic growth, during the financial year Speedy acquired five businesses for a consideration of £35m (Eur 51m). It said these businesses have all been successfully integrated into the Speedy Hire network.
Since the conclusion of the financial year it completed the acquisition of LCH, the UK’s leading independent hirer of temporary power systems, for a total consideration of £59m (Eur 86m).
To facilitate these acquisitions, Speedy completed a £15m (Eur 22m) share placing and negotiated an enhanced £210m (Eur 306.5m) bank facility. These have given the group a strong financial position to continue with business development and acquisition strategy.
As Speedy Hire has grown over the last year, an additional 395 people have joined the business. It now employs over 3,400 people.
Veritiero sees no reason why this kind of growth will not continue. He said that few companies will be able to keep up with the demands of health and safety, for example, which are constantly putting pressure on manufacturers.
“Any move in that direction is a good one,” said Veritiero. He highlights the new working at height restrictions as a prime example: Yes, added safety has been ensured but manufacturers have to constantly pull rank.
