Chairman David Shearer said: 鈥淭he group reacted quickly to manage its cost base and cash resources following the outbreak of the Covid-19 pandemic in March 2020. Our UK and Ireland operations have remained open, and we have continued to serve our customers nationally, albeit from a reduced depot footprint鈥� Our revenues declined initially, but are recovering as we have seen customers returning to work.鈥�
His comments came as Speedy posted financial results for the year to 31st March 2020 showing 3% growth in turnover to 拢402.5m (2019: 拢389.2m) but pre-tax profit down 28% to 拢20.7m (2019: 拢28.7m).
The bottom line was impaired by 拢12.9m of exceptional items, mostly related to Geason Training, which has 鈥渘ot performed in line with expectations鈥�. Adjusted profit before tax increased to 拢34.9m (2019: 拢31.4m).
Geason Training, acquired in December 2018, suffered from 鈥渓ower than expected learner enrolments, the setup of a number of regional training centres which have yet to reach critical mass and a poor control environment,鈥� said Speedy chief executive Russell Down. 鈥淢ore recently the business has been further affected by an assurance visit from a funding agency and market conditions due to Covid-19. All goodwill and contingent consideration payable in relation to the acquisition has been written off and we have provided for amounts which may become repayable as a result of the assurance visit. The strategy remains to grow a profitable training business, and consequently the group has implemented a number of management changes and is reviewing further initiatives to improve its financial position.鈥�
On the group performance as a whole, Russell Down said: 鈥淲hilst Covid-19 will have some financial impact on the business, I am reassured by our performance in the last three months. We are well placed to emerge in a position of strength to pursue our strategic objectives as more normal trading levels return.鈥�