Speedy Hire today announced a tie up with Carillion’s Middle East business, but said that overall it remains very cautious about the short term prospects of the business.
Speedy Hire which raised £100 million in a rights issue earlier in May to shore up its balance sheet, said that turnover has declined by 10 per cent in the first quarter from the last three months of last year.
Bosses said that in the first quarter of last year turnover was up by 36 per cent, but the subsequent decline in turnover from this record quarter has been 30 per cent.
But the quarter on quarter decline in turnover has been a more modest 10 per cent.
At an AGM today chairman David Wallis said: “With continuing uncertainty around future construction activity, the board remains cautious about the group’s short term outlook.
“Costs continue to be monitored closely and will be managed to a level which ensures that they remain appropriate for forecast activity levels.
“In addition, capital spending and equipment disposals are being carefully controlled to ensure that utilisation levels are optimised and that growth opportunities in the more resilient sectors of the economy can continue to be pursued and judicious support of key clients and markets maintained.”
Speedy meanwhile announced it has signed a memorandum of understanding with Al Futtaim Carillion, Carillion’s long-standing joint venture in the Middle East, to provide equipment, asset management and site support services to Al Futtaim Carillion’s operations across the region.
Speedy chief executive Steve Corcoran said: “This demonstrates the success of our strategy of developing even closer relationships with our chosen partners.
“We have had a Speedy implant team working with Carillion’s local management in the UAE for the last six months to understand better its business and develop new ways of working that will support Carillion’s growth in the Middle East.
“We expect this initiative to provide an excellent platform to extend our services to other customers across the Middle East and other geographic territories over time.”