Speedy Hire has been operating in the Middle East since 2009
Rental firm Speedy Hire says that its Middle East operation helped it to turn around its financial fortunes in 2011.
The UK-headquartered business posted a first financial year loss of $1 million. However the company said it is now reaching “critical mass” at its Gulf operation which is helping it turn in a operating profit.
Overall revenue at Speedy fell down from $560 million to $520 million but still posted an operating profit of $44 million, with an operating margin of 8.7%.
While Speedy continues to draw the majority of its revenue from the UK in the areas of lifting, power, survey and general tools and equipment, CEO Steve Corcoran said the company believes that its international operation centred around Dubai has a solid operation on which it can be confident of growth.
We have established a solid foundation in our international operation which we are confident will provide a good platform going forward,” said Corcoran. “We believe that our focus on well-funded sectors and our more diversified approach will continue to make our business more robust, profitable and sustainable.”
He added: “We are pleased with the progress made in 25 months and expect the second half-year performance to be the catalyst for continued growth as we build critical mass.
“Over time our expectation is for the International operations to provide operating margins, returns and cash contribution above historic UK levels.”
Speedy has worked hard to develop an operation that is much less dependent on construction, Corcoran said diversity in its approach is helping it to smooth its progress in a turbulent domestic market.
“Whilst the UK economy remains fragile, our markets are now much more diverse than general construction,” he said. “The business has an increasing exposure to the regulated and privately funded infrastructure investment markets and in particular those customers and end users active in social infrastructure and the water, waste, energy and transport sectors.”