Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Speedy Hire predicts massive expansion

PLANT - Hirer unveils plans to triple its turnover to grab 30 per cent market share

SPEEDY Hire can become a £750 million turnover company ? three times its current level ? chief executive Steve Corcoran claimed at the announcement of the firm's interim results.

The forecast was made after the company's success chasing new hire markets and increasing cross-selling between sectors, but no time scale for the expansion was given.

Mr Corcoran said a combination of the new opportunities from an expanded business, continued solid forecasts in its customers' markets and momentum from increasing legislation would enable the firm to take a 25-30 per cent share of an estimated £2.8 billion equipment market.

Mr Corcoran said: 'That is the level where the competition commission would start to ask questions. I don't see why we shouldn't aim for that.' Speedy increased its turnover 21 per cent to £120 million. Its pretax profit rose 16 per cent to £13 million in the six months to September 30.

The tool division turned over £71.4 million and the equipment operations £51 million in the six-month period. Pretax profits were £10.4 million and £9.6 million respectively.

Mr Corcoran said: 'We are looking at a hire village where different divisions are on one site but we certainly won't dissolve them all into one.' The hirer is investing in areas such as IT and paperless invoicing to aid its expansion.

Mr Corcoran said: 'Our industry is burdensome for administration and currently less than 2 per cent is electronically invoiced. With an average tool hire invoice of £63, we must reduce that burden.' Speedy is looking at a number of areas in which to promote its hire services, including rigging for events, concreting, safety services and landscaping.

He announced two site-based deals with Costain Petrofac at Morecambe Bay and with ICI at Wilton. The latter will bring in up to £1.5 million a year over three years.

The firm contends that it is investing significantly more in new equipment than the rest of the market, with £66 million spent last year. Finance director Neil O'Brien said: 'We are out-investing our competitors.

We have a f lex ible business plan, which means that, unlike plant hire, when times are good we can bring in new tools without long lead times.'