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Monday, 20 February 2012 14:58

Speedyhire wins £50M Carillion contract extension

Speedy Hire, the UK's largest provider of tools and equipment for hire, has announced today it has signed a three year extension to its existing preferred supplier agreement with Carillion.

The contract, which will now run from 2012 until 2016, is expected to be worth in excess of £50m over the next four years.

The agreement reinforces Speedy's relationship with Carillion as its preferred supplier for a full range of products and services across all Carillion's UK operations including joint ventures where it is the lead company.

Steve Corcoran, Chief Executive, said:

"I am delighted that we continue to develop our relationship with Carillion, one of the UK's largest construction and support services companies. This new agreement is another important step in our growth in our key markets of water, waste, energy and transport, all of which are undertaking major new infrastructure projects in the UK."

In its Interim Management Statement released earlier this week, Speedy Hire Plc said that trading for the period from 1 October 2011 to 14 February 2012 overall has been in line with the Board's expectations.

Group underlying revenues for the third quarter (Oct - Dec) were up 7.6% against the prior year with the focus on self help measures to drive operational efficiency delivering further improvement in profitability.  The Group expects to have opened a further 3 superstores by the end of February.

Speedy's second half is always influenced by the Christmas period when the weather and holidays cause activity for many of its clients to be reduced.  Whilst in January the initial speed of recovery following the Christmas period was slower than expected as the mild weather resulted in lower revenues from heating and drying equipment, subsequent trading has benefited from the recent bout of cold weather, together with improved revenues from non-weather related activity.

The Group has maintained its focus on the regulated industries and private sector investment markets of water, waste, energy and transport.  Speedy said it is making steady progress despite the challenging market conditions and uncertain economic outlook and the Board remains confident of meeting its expectations for the financial year.

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