Speedy also dumps toilet hire subsidiary to concentrate on core business of tool and equipment hire.
Support services group Speedy hire has bought Cheshire-based tool hire specialist DAD Hire Services for £300,000.
DAD operates from a single depot in Northwich, but will extend Speedy Hire’s geographic coverage. DAD’s turnover is £300,000.
Speedy Hire also announced to the stock exchange this morning that it has sold its subsidiary Toilet Hire to a management buyout team backed by the Bank of Scotland. The cost is £1.1m, although £600,000 of this is payable in equal instalments over three years.
The subsidiary contributed just £100,000 to the group’s last annual results, so Speedy Hire decided to exit what it viewed was a small market with limited growth opportunities.
A consequence of the sale is that Speedy Hire’s results for the 12 months to 31 March will include a £600,000 exceptional charge, relating to fee and asset write-offs.”
Speedy Hire chief executive John Brown said: “It makes sense for Speedy Hire to switch out of low return sectors and concentrate on our core businesses in tool and equipment hire.”