Speedy Hire Plc has announced its intention to expand its international operations with a new joint venture in Kazakhstan.
The UK provider of equipment rental and support services will join forces with J & J Denholm group to form Speedy Zholdas.
The new initiative will provide maintenance and turnaround services at a number of the largest oilfields in the Caspian Region. As part of the transaction, Speedy has acquired a 50% interest in Denholm’s existing equipment rental operation for a cash consideration of $4.4m.
The announcement was made to coincide with the release of Speedy’s interim report for the six months to 30 September 2013. The report also revealed that the company’s revenue increased by 0.4%, and that its earnings per share increased by 1.8%.
Speedy is showing encouraging signs on the international stage, increasing the scale of its business and growing its reputation in the Middle East. Although the company’s initial focus in the region was confined to the UAE, it has grown to support clients with existing operations across the region.
Earlier this year, Speedy increased its presence by establishing an office in Qatar. The UK firm is confident that its Kazakhstan joint venture will allow strong growth to continue into H2 and beyond.
“We continue to take further steps to build the business for the future,” said Speedy chairman Ishbel Macpherson, commenting on the company’s interim report. “We have strengthened the management team, expanded our international footprint through a joint venture in Kazakhstan, and decided to accelerate our UK depot and logistics strategy.
“Our foundations are strong, our opportunities exciting, and we are well positioned to enjoy the benefits of any economic recovery in the UK,” she added.
